Financials: Sept. Bonds are currently 2 lower at 133'09. Weekly initial jobless claims rose 12,000 to 500,000, the highest level since last November. Pre-report average guesstimates were for a decline of 4,000. For the week of Aug. 7th continuing claims fell 13,000 to 4,478,000. The initial reaction in the Bonds was a rally to the 133'20 level before breaking back to present levels. The long 10 Yr. Note/short Bond spread is currently up 5 points at 7'29. We continue to hold this spread, looking for the spread to
decline to the 6'20 level. Near term support remains at 132'12 and near term resistance 134'01. I am inclined to trade this market from the short side on rallies above the 133'28 level for short term trades.
Grains: Yesterday Nov. Beans closed 11 cents lower, Dec. Corn 3 higher and Dec. Wheat 5 higher. Over night Beans were 4 higher, Corn 1 higher and Wheat 21 cents higher. We remain long out of the money calls and/or call spreads in Dec. Corn. I still like the long side in both Nov. Beans and Dec. Corn as long as Nov. beans stay above 1020'0 band Dec. Corn above 416'0.
Cattle: Yesterday Live and Feeder Cattle closed sharply higher. Overnight both of these markets continued their upward momentum trading 100+ higher. Tight supplies and lower weights have made cash market participants pay up for available supplies. Will this continue past Labor Day? I have missed this move and will remain on the sidelines.
Silver: Sept. Silver is currently 14 cents higher at 18.54. The market has recovered from yesterday's early loss of 30+ cents and looks poised to close above the 18.50 level for thesecond time this week. I recommend going long with a small position on breaks and using a protective sell stop at 17.35. We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently unchanged at 1086.75. This mornings Job's report was a disappointment taking the market from a report high of 1095.00 to current levels. If you went short at yesterday's resistance level of the 1092.00 area, eith take profits or use a protective buy stop at 1103.00. If the market trades below the 1179.00 level, lower your buy stop to the 1089.00 level.
Currencies: As of this writing the Sept. Euro is 16 higher at 1.2880, the Swiss 109 higher at .9709, the Yen 29 higher at 1.1732 and the Pound 47 higher at 1.5651. This morning I am going long the Dec. Yen 1.12 put in anticipation of a break in the value of the Yen from present levels in the coming months.