Financials: Dec. Bonds are currently 9 higher at 146'11 and the 10 Yr. Note 1 lower at 131'23. Continued fears of European debt and bank capitalization because of writedowns of this debt has caused a continued flight to safety and flatenning of the yield curve. As I mentioned yesterday, I am contemplating the short side of these markets, but I am not ready to pull the trigger. Stand aside and let the dust settle a bit.
Grains: Yesterday the Grains were sharply lower across the Board. This morning Beans are another 20 cents lower, Corn 6 lower and Wheat fractionally higher. External economic problems, i.e. the world banking situation, have had a negative impact on just about everything. I remain long out of the money calls on Dec. Corn which have declined in value considerably. Stand aside.
Cattle: Like all other commodities Live and Feeder Cattle closed sharply lower yesterday. This morning Feeder Cattle are slightly lower and Live Cattle slightly higher. I am on the sidelines.
Silver: Dec. Silver is currently 3.60 lower at 32.91. Yesterday I purchased a small long position and will sit this for the time being. I caution against adding at this time if you are not well capitalized as the 200 day moving average of 36.05 has been penetrated. Dec. Gold is currently 55.00 lower at 1686.00, well below yesterday's support of 1710.00. Stand aside.
S&P's: Dec. S&P's are currently 12.50 lower at 1111.00 after making an early morning low of 1102.00. We have covered all short positions and are now looking ot the long side of the market below the 1090.00 level. Long term support is in the 1070-1080 area.
Currencies: As of this writing the Dec. Euro is 10 higher at 1.3474, the Swiss 46 higher at 1.1081, the Yen 40 higher at 1.3142 and the Pound 80 higher at 1.5422. Other than being long out of the money puts in the Yen, I recommend the sidelines until Monday.
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