Financials: Bonds are currently 7 higher at 125'09 and the 10 Yr. Note 2 higher at 124'06. The Bonds remain in a trading range with support in the 124'28 are and resistance in the 126'20 area. I remain on the sidelines.
Grains: Yesterday Beans closed 16 cents lower, Corn 11 lower and Wheat 16 lower. Over night Beans were 8 higher, Corn 2 higher and Wheat 4 higher. Corn remains in a wide trading range with support at 654'0 and resistance at 692'0 for the Dec. contract. Weather and the Dollar continue to dominate the market. We remain long out of the money call spreads in Sept. and/or Dec. Corn.
Cattle: Yesterday Live and Feeder Cattle closed steady to moderately lower depending on the contract month after being sharply lower early in the session in response to Friday's Cattle on Feed Report. Aug. LC continues to find support in the 109.00 level. Deferred contracts continue to find buyers on breaks for 2012 contracts. Aug. FC continues to find support in the 135.00 area.
Silver: Sept. Silver is currently 8 cents lower at 40.28. We continue to hold a small long position. Be aware of resistance in the 41.00-42.00 area. Aug. Gold is currently 2.00 lower at 1610. I am looking for a break in Gold sometime in the near future back to the 1575.00 area. Resistance in Aug. Gold is currently the contract high of 1624.00.
S&P's: Sept. S&P's are currently 2.00 lower at 1332.00. The market is still concerned about what compromises will be needed to pass an increase in the debt ceiling. I remain on the short side of the market. Near term support remains in the 1323.00 area with resistance lowered to the 1342.00 area. Longer term support is currently the 1308.00 level.
Currencies: As of this writing the Sept. Euro is trading 76 higher at 1.4438, the Swiss 47 higher at 1.2458, the Yen 39 higher at 1.2821 and the Pound 81 higher at 1.6368. I am on the sidelines, but, looking at the short side of the Euro.
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