Financials: Dec. Bonds are currently 10 higher at 150'02 carrying a 28 tick premium to the Sept. contract. The Dec. contract will be considered lead month as of Friday Aug. 31st. Over the last 10 days we have been trading the Sept. contract from the long side on sharp breaks and taking profits above the 147'28 level as the market rallied on hopes of another round of stimulus. We are currently on the sidelines. At current levels I am changing my bias to the sell side of the market on rallies above the 151'00 level for the Dec. contract. Support is currently 148'02.
Grains: Dec. Corn is currently 2'0 lower at 798'6, Nov. Beans 9'2 lower at 1709'4 and Dec. Wheat 2'2 lower at 879'0. I am still looking at the 785'0 level in Dec. Corn as support. If this level is reached, users such as Livestock producers should be looking to cover their near term needs. We continue to hold the combination of short the Dec. Corn 680'0 put and short the Dec. Corn 900'0 call.
Cattle: Oct. LC are currently 47 higher at 123.95 and Oct. FC 120 higher at 145.12. Feeder Cattle continue to gain on Live Cattle as feed grain prices back off from all time highs. Dec. Hogs have gained on Dec. Cattle over the last few sessions, however, the long Hog/ short Cattle spread is still against me.
Silver: Dec. Silver is currently 20 cents lower at 30.93 and Dec. Gold 8.00 dollars lower at 1667.00. We remain long Silver despite resistance in the 31.00 area. As expected Gold has run into resistance in the 1670-1680.00 area promting us to liquidate long positions. I will be looking to reinstate long Gold positions in the 1642.00 area.
S&P's: Sept. S&P's are currently 3.00 lower at 1405.25. Support remains in the 1395-1403.00 area with resistance bove the 1414.00. I still prefer the short side of the this market on rallies for short term trading.
Currencies: As of this writing the Sept. Euro is trading 60 higher at 1.2565, the Swiss50 higher at 1.0464, the Yen 36 higher at 1.2734 and the Pound 10 higher at 1.5807. I remain on the sidelines.
888.908.4310 | 312.264.4310