Financials: Dec. Bonds are currently 1'12 lower at 141'02 after making a low of 140'10 shortly after this mornings friendly Monthly Employment Report. The report showed an increase in non-farm payrolls of 103,000 versus expectations of 60,000. If you are short this market I recommend covering your position as this market is now in support. Technically the Bonds need to see a close below the 139'26 to point to lower prices at this time. For the near term I will be a buyer on breaks for short term trades until the 139'26 level is penetrated.
Grains: Yesterday Nov. beans and Dec. Corn closed unchanged. Dec. Wheat closed 9 lower. Over night Beans were 11 cents lower, Corn 8 lower and Wheat 7 lower. We remain long out of the money calls and/or call spreads in Dec. Corn. I will be interested in the long side of Dec. Corn below the 580'0 level if the market allows.
Cattle: Yesterday Dec. Live cattle closed 25 lower at 122.40 and Nov. Feeder Cattle closed 17 lower at 141.575. Over night Dec. Cattle are slightly lower and Nov. Feeders moderately higher. I am still leaning towards the short side of Dec. Cattle above the 122.00 level with either futures, long puts or short out of the money calls. If you are short futures I am recommending using a protective buy stop at 124.35.
Silver: Dec. Silver is currently 16 cents higher at 32.16. We continue to hold a small long position. If you are long term bullish consider out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. S&P's are currently 8.00 higher at 1165.50. A friendly Jobs report earlier this morning rallied the market as high as 1173.75 before backing off to current levels. In my opinion the Jobs number in spite of being beyond expectations (see financials comment) was not all that great. This morning we came in with no positions. I am now looking to the short side of the market on rallies above the 1170.00 level. Near term support is currently 1143.00 with resistance in the 1180.00 area.
Currencies: As of this writing the Dec. Euro is currently 47 higher at 1.3463, the Swiss 24 higher at 1.0885, the Yen 26 lower at 1.3040 and the Pound 139 higher at1.5561. I remain on the sidelines at the moment. My Oct. Yen 1.24 puts will expire worthless today (original cost was 28 points, $350.00). That being said, I still feel that the yen is too high and will once again buy out of the money puts, this time for Dec. expiration.
888.908.4310 | 312.264.4310