Financials: Dec. Bonds are currently 1'14 higher at 140'04 and the 10 Yr. Note 19 higher at 128'06. Yesterday the market gave a technical sell signal when the 139'26 level was penetrated pushing the market as low as 138'19 in what can only be called a thin holiday (Columbus Day) trade. Yields are once again just above the 3.0% level for the 30 Yr. Bond and above 2.0% for the 10 Yr. Note. My bias is now to the short side of the market on rallies to the 141'15-142'00 level for the 30 Yr. Bond.
Grains: Yesterday Nov. Beans closed 19 cents higher, Dec. Corn 5 higher and Dec. Wheat 4 higher. Over night Beans were 13 higher, Corn 1 higher and Wheat 4 higher. Average estimates for tomorrow morning's report are as follows: Corn 12.479 billion bushels with a yield of 148.73 bushels per acre. Soybeans 3.102 billion bushels with a yield of 42.06 bushels per acre. I remain long out of the money calls and/or call spreads in Dec. Corn.
Cattle: Yesterday Dec. Live Cattle closed 150 lower at 120.35 and Nov. Feeder Cattle 77 higher at 143.12. If you remain short Dec. LC either take profits or lower your protective buy stop to 121.90. If you are long puts, I suggest rolling them into a lower strike price. If you are short out of the money calls start looking for a level to cover your position.
Silver: Dec. Silver is currently 40 cents lower at 31.56. We continue to hold a small long position. If you are long term bullish I suggest going long out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. S&P's are currently 8.00 lower at 1183.00. Yesterday we went short in the 1180.00 resistance level. If you remain short I recommend using a protective buy stop at 1203.00. Support is currently 1153.00, up from yesterday's support of 1143.00. It is once again earnings season which will have an effect on the market over the next week or so. It is expected that the Banking sector will show poor results.
Currencies: As of this writing the Dec. Euro is 82 lower at 1.3572, the Swiss 100 lower at 1.0991, the yen 4 higher at 1.3057 and the Pound 60 lower at 1.5606. I have once again gone to the well and purchased the Dec. Yen 1.24 put at 35 points. I will be a seller in the Euro above the 1.3775 level if the market allows.
888.908.4310 | 312.264.4310