Financials: Sept. Bonds are currently 4 higher at 134'15. The long 10 Yr. Note/ short Bond spread is currently 4 higher at 8'17 putting the spread at an $1100 loss from where I initiated the spread. Technically the Bonds have made a test of the highs made the week of March 20th in the 134'00 area and surpassed it slightly with an over night high of 135'07. to be honest, I still feel that this market is oversold and feel that the market will retreat to the 132'00 level, which will still put the yield on the 30 Yr. at under 4%. I feel that except for the Government using the 10 and 30 Yr. instruments to keep yields artificially low that there will be a lack of buyers. I would be interested in your comments and opinions on this market.
Grains: Yesterday Beans were 18 lower, Corn 4 lower and Wheat 25 higher. Over night Beans were 8 lower, Corn 4 lower and Wheat fractionally lower. Cooling temperatures in Russia have put pressure on these markets over the last few days. Over night Russia announced that it will not be importing grain. Yesterrday the 1020'0 support level in Nov. Beans was penetrated putting me on the sidelines for the moment. Support of 416'0 in Dec. Corn continues to hold. We remain long calls and/or call spreads in Dec. Corn.
Cattle: Yesterday Live and Feeder Cattle closed sharply higher but well off the interday highs. Over night these markets are slightly higher to slightly lower dependant on the contract month. We remain on the sidelines as far as a speculative position is concerned. Producers should be looking a hedging opportunites for Oct. Nov. and Dec.
Silver: Sept. Silver is currently 38 cents lower at 17.94. We are a buyer 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 3.00 lower at 1068.00. If you remain short this market I recommend taking profits or lowering your protective buy stop to the 1076.00 level. I feel that the market is in support.
Currencies: As of this writing the Sept. Euro is 135 lower at 1.2687, the Swiss 50 lower at .9632, the Yen 42 lower at 1.1681 and the Pound 85 lower at 1.5508. Yesterday we bought the Dec. Yen 1.12 put. I feel that the Yen is overbought and at some time in the coming months there will be a significant break. As of this writing the Dec. 1.12 put is trading at about 100 points ($1250).