Financials: Sept. Bonds are currently 24 higher at 123'15. We continue to hold the combination of short Bonds and short the Sept. Bond 120'00 put. If the Bond futures trade below the 121'10 level in the next few sessions I will exit these positions.
Grains: Yesterday Beans closed 2 cents lower, Corn unchanged and Wheat fractionally higher. Over night Beans were 4 higher, Corn unchanged and Wheat 2 higher. If you remain long July Corn, either take profits or continue to use a protective sell stop at 346'0.
If you remain long July Beans, either take profits or continue to use a sell stop at 946'0. We remain long out of the money call spreads in Nov. Beans. The Sept. Corn 340'0/420'0 strangle gave a profit taking opportunity trading in the 15'4 cent area and settled at 15'6. We originally sold this strangle at 24'4.
Cattle: Yesterday Live and Feeder Cattle closed moderately higher posting gains of about 50 points. Aug. Cattle made a new recent high of 89.10 midsession before backing off to the 88.60 area. If you remain long either take profits or raise your protective sell stop to the 87.15 level. If the market trades above 89.00 today, raise your sell stop to the 87.60 level.
Silver: July Silver is currently 5 cents lower at 18.54. I remain on the sidelines.
S&P's: Sept. S&P's are currently 2.00 lower at 1107.50. To say that yesterday's rally took me by surprise would be an understatement. I remain short with a loss and will use a protective buy stop at 1117.50 for protection. I will be happy to scratch this current short position on a break below the 1095.00 today if the market allows.
Currencies: As of this writing the Sept. Euro is 37 lower at 1.2307, the Swiss 49 higher at .8890, the Yen 13 lower at 1.0950 and the Pound 10 lower at 1.4806. We remain short futures and/or out of the money calls in the Euro. I am still looking to the short side of the Pound on a rally above the 1.4850 level. The Sept. Dollar Index is currently 86.39.