Financials: Dec. Bonds are currently 6 lower at 138'26 and the 10 Yr. Note unchanged at 128'22. I remain slightly negative and look to the short side of the market on sharp rallies. Continue to treat as a trading market between 138'00 and 141'15.
Grains: Yesterday Beans closed unchanged, Corn 11 higher and Wheat 11 higher. Over night Beans were 9 cents higher, Corn 9 higher and Wheat 9 higher. Dec. Corn is now above the 655'0 resistance level trading as high as 659'0 over night. If you are long futures in Dec. Corn either take profits or use a close stop( I recommend using a stop just below settlement of 649'4). If you remain long calls and/or call spreads I recommend staying with the position.
Cattle: Yesterday Dec. Live Cattle closed 115 lower at 121.80 after making a low of 121.05 amid cash market and export worries. Nov. Feeder Cattle closed 60 lower at 142.025. Now that the market has traded below the 121.90 level on Dec. LC I recommend lowering protective buy stops against recent short positions to your break even level.
Silver: Dec. Silver is currently 1.02 higher at 31.30. If you remain long term bullish consider going long out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. S&P's are currently 13.00 higher at 1223.00. Support has now been established near yesterdays lows in the 1190 area with resistance at the weekly high in the 1230.00 area. We remain short the Dec. 1240.00 call.
Currencies: As of this writing the Dec. Euro is trading 48 higher at 1.3811, the Swiss 80 higher at 1.1271, the Yen 100 higher 1.3123 and the Pound 120 higher at 1.5897. We remain long out of the money puts in the Dec. Yen. My thinking is that the Yen has become a safe haven vehicle and if economies stabilize gravity will come into play on the Yen. I have positioned this market with the 1.24 put which is currently about 30 points.
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