Financials: Dec. Bonds are currently 1'24 higher at 141'06 and the 10 Yr. Note 29 higher at 130'15. Greek and other European Soveriegn debt once again dominate the markets this morning as traders abandon equities and the Euro in a flight to safety. You might consider buying out of the money puts if you feel that rates are too low on the long end of the yield curve. I am staying away from futures at the moment.

Grains: On Friday Beans were 3 cents lower, Corn 9 lower and Wheat 7 lower. Over night Beans were 8 lower, Corn 6 lower and Wheat 7 lower. We are currently long Dec. Corn from below the 735'0 level and long out of the money Dec. Corn call spreads. A strong Dollar and negative technicals have been dominating the market pushing it lower at the moment. I remain fundamentally bullish because of supply, but must recognize that a strong Dollar has a negative effect on world wide demand. I intend to keep my option positions but will use a rally above the 693'0 level to take a loss on my futures position.

Cattle: On Friday Oct. Live Cattle closed 40 lower at 118.50 and Oct. Feeder Cattle 30 lower at 137.475. We remain short Oct. LC and will lower our protective buy stop to the 120.50 level. If the market trades below the 118.00 level, either take profits or lower your buy stop to your break even level.

Silver: Dec. Silver is currently 50 cents lower at 40.33. We remain on the sidelines awaiting a break below 39.00 to reinstate a long position if the market allows. Dec. Gold is 1.00 lower at 1814.00

S&P's: Dec. S&P's are currently 22.00 lower at 1190.00. Greek and other European Sovereign Debt worries are once again pressuring the equities markets. We continue to retain a short bias to this market. Near term support remains at 1168.00 and resistance is now the 1212.00 level.

Currencies: As of this writing the Dec. Euro is 151 lower at 1.3632, the Swiss 107 lower at 1.1340, the Yen 18 higher at 1.3044 and the Pound 107 lower at 1.5667. If you remain short the Euro either take profits or lower your protective buy stop to the 1.3710 level. We remain long the Oct. Yen 1.2400 put.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com