Financials: Mar. Bonds are currently 22 higher at 141'13 and the 10 Yr. Note 13 higher at 129'23. I continue to recommend being long out of the money puts and/or put spreads for either Jan. or Mar. expiration.

Grains: Yesterday Jan. Beans closed 3 cents higher, Mar. Corn 5 higher and Mar. Wheat 1 higher. Over night Beans were 4 higher, Corn fractionally lower and Wheat 4 lower. We have no positions at this time having been stopped out of a recent long positions. Users of Corn might consider long hedges if Mar. Corn falls below the 580'0 level.

Cattle: Yesterday Feb. LC closed 70 lower at 119.55 and Jan. FC 217 lower at 142.12. If you continue to hold the combination of short Feb. LC and short the Feb. LC 118 put either take profits or lower your buy stop to the 120.70 level. Producers who are short Feeder Cattle futures may consider covering their short futures and purchasing out of the money puts and/or put spreads to take advantage of the recent considerable downside price move.

Silver: Mar. Silver is currently 5 cents lower at 32.69. If you remain long term bullish consider using out of the money calls and/or call spreads.

S&P's: Dec. S&P's are currently 7.00 lower at 1248.00 Continue to treat as a trading market between 1240.00 and 1260.00. My bias is to the down side. A close below 1243.00 could indicate a break to the 1230.00 area.

Currencies: As of this writing the Dec. Euro is trading 31 lower at 1.3380, the Swiss 6 higher at 1.0809, the Yen 10 lower at 1.2861 and the Pound 102 higher at 1.5705. I continue to recommend being long out of the money puts in the Euro and the Yen.

Regards, Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com