Financials: Sept.Bonds are currently 1'14 higher at 123'09. This morning's Employment Report showed an increase in non farm payrolls of 430,000. This is a disappointing number as the consensus before the report was for an increase of 517,000. Keep in mind that there were reportedly 411.000 people hired as tempoary census takers, leaving an increase of only 19,000. Technically the market is now in resistance just above the 123'00 level. Support is now the 121'06 level. I am willing to try the short side of the market for a short term trade with a protective buy stop at 123'28.
Grains: Yesterday Beans were 22 cents higher, Corn 1 higher and Wheat fractionally lower. Over night Beans were 3 lower, Corn 2 lower and Wheat about 2 lower. It appears that farmers are holding back on old crop beans while planting the new crop causing a surge in the cash market, especially for meal and oil. Yesterday we went long July Corn and we are currently using a protective sell stop at 337'0. My near term upside objective is the 360'0 level. The market is slightly lower this morning due to renewed strength in the Dollar. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. The Sept. Corn strangle is currently about 18'0. I recommend taking profits below the 16'0 cent level.
Cattle: Yesterday Live Cattle closed 5 points higher in the expiring Jun. contract and 50+ lower in deferred contracts. Feeder Cattle closed slightly higher after trading about 60 higher early in the sessions. Feeder Cattle gave up early gains as feed grain prices improved. We currently do not have a speculative position, but will be interested in going long Aug. Cattle below the 88.50 level if the market allows.
Silver: July Silver is currently 27 cents lower at 17.65. If you went short the market yesterday for a short term trade, take profits. If you remain long the market as a long term term strategy, continue to use a protective sell stop at 17.37.
S&P's: Jun. S&P's are currently 22.00 lower at 1081.25. A disappointing jobs number and continued concern over soveriegn debt are providing the expected results with this morning's sharply lower market. If you went short at yesterday's resistance level of 1104.00, take profits and stand aside as the market is trading near support of 1079.00
Currencies: As of this writing the Jun. Euro is 130 lower at 1.2047, the Swiss 5 lower at .8654, the Yen 80 higher at 1.0870 and the Pound 63 lower at 1.4574. The euro is now below the 1.2100 level for the first time since Apr. of 2006. Sovereign debt is once again a concern. I am currently on the sidelines. The next major level of support in the Euro is the 1.1800 level. Monday I will be quoting the Sept. contracts as the Jun. is about to expire. I am considering a few ideas with option spreads in the Euro and the Yen and will have a recommendation early next week.