Financials: Dec. Bonds are currently 20 higher at 139'05 and the 10 Yr. Note 13 higher at 128'10. This mornings weekly Jobless Report showed a decline in new unemployment claims of 1,000 vs. estimates of a rise of 4,000. I feel the overall trend is down but do not want to be an aggressive seller at current prices. Treat as a trading market between 138'00 and 141'15.
Grains: Yesterday Beans were 4 cents higher, Corn 4 lower and Wheat 34 lower. Over night Beans were 8 lower, Corn 8 lower and Wheat 1 lower. No great surprises after the Report yesterday as the market did what the early morning analysis expected which was a bit of a break in Corn and a rally in Beans. What to do now: Treat Corn as a trading market between 615'0 and 655'0. We remain long out of the money calls and/or call spreads in Dec. Corn.
Cattle: Yesterday Dec. Live Cattle closed 40 lower at 121.22 and Nov. Feeder Cattle 20 higher at 143.32. I am currently on the sidelines as far as futures are concerned but, looking to re-enter the market from the short side on a rally above the 122.50 level in Dec. LC.
Silver: Dec. Silver is currently1.08 lower at 31.70. If you are long term bullish consider out of the money calls and/or call spreads for March 2012 expiration. To be honest the futures market is too volatile to make a recommendation at this time.
S&P's: Dec. S&P's are currently 6.00 lower at 1192.50. Yesterday we once again went short. If you are looking for a short term trade either take profits or use a close stop. For long term positions use a protective buy stop just above yesterdays high of 1216.00. If the market trades below the 1183.00 level, lower your buy stop to the 1199.00 level.
Currencies: As of this writing the Dec. Euro is 80 lower at 1.3699, the Swiss 100 lower at 1.1094, the Yen 70 higher at 1.3016 and the Pound 71 lower at 1.5672. We remain short the Euro and long out of the money put options in the Yen.
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