Financials: Sept. Bonds are currently 9 lower at 133'23. The long 10 Yr. Notes/ short Bond spread is currently at 8'11 premium the Bonds (narrowing by 4 points). My objective for this spread still remains in the 6'15 area. Near term support is currently the 132'00 area and near term resistance just above 135'00. I still remain negative this market as long as the yield on the 30 Yr. Bond remains under 4%.
Grains: On Friday Nov. Beans closed 8 cents lower, Dec. Corn 7 cents higher and Dec. Wheat 2 lower. Over night Beans were 5 higher, Corn 1 higher and Wheat 14 higher. We are on the sidelines in Nov. Beans. We remain long calls and/or call spreads in Dec. Corn. Support in Dec. Corn continues to hold above the 416'0 level and I recommend the long side of this market unless this level is breached.
Cattle: On Friday Live Cattle closed mixed and Feeder Cattle 70-120 higher depending on the contract month. Friday's Cattle on feed Report showed the following: On Feed 102% of a year ago, in line with expectations. Placements 94% versus a pre-report average estimate of 92.6%. Marketed 98% versus 99.7%. The placement and marketing numbers in my estimation were somewhat negative given the recent rally in both the Live and Feeder markets and I anticipate a set back from current prices.
Silver: Sept. Silver is currently 2 cents higher at 18.01. If you remain long futures, contniue to use a protective sell stop at 17.35. If the market rallies above 18.20 raise your stop to the 17.50 level. I must admit that I'm a bit disappointed that this market has not returned to the 18.50 level. We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently 6.50 higher at 1077.00. Increased M&A activity and a small break in treasuries from last week's highs have given the bulls in this market something to hang their hat on. For the near term I expect a sideways market between the mid 1060's and the mid 1090's.
Currencies: As of this writing the Sept. Euro is 10 higher at 1.2719, the Swiss 18 lower at .9642, the Yen 75 higher at 1.1738 and the Pound 37 higher. We remain long the Dec. Japanese Yen 1.12 put.