Financials: Mar. Bonds are currently 19 lower at 145'14 and the 10 Yr. Notes 10 lower at 131,01. Comments from the ECB concerning that institutions willingness and ability to be the buyer of last resort for European soveriegn debt once again sent the U.S. credit markets into a flight to safety. A decline in the banking sector of equities didn't help matters. That being said we took the price advance in Bonds as an opportunity to do the long 10 Yr. Note/short Bond spread which is currently 8 points ($250) against us. For those of you in the long 5 Yr. Note/ short 10 Yr. Note spread this trade is currently 10 points against us. Of note: the 10 Yr. Note made a new contract high yesterday.
Grains: Yesterday Beans closed 7 cents higher, Corn 18 higher and Wheat 16 higher. Over night Beans were 5 higher, Corn 2 higher and Wheat 5 higher. I am a buyer on breaks with protective sell stops just below threcent low of 576'2 in Mar. Corn.
Cattle: Yesterday Feb. LC closed up the 300 point limit due to weather conditions in the Kansas, Oklahoma, Nebraska area discounting a somewhat neutral to bearish Cattle on Feed Report. I am on the sidelines but look at further rallies as selling opportunities.
Silver: Mar. Silver is currently 50 cents higher at 29.37 and Feb. Gold 15.00 higher at 1611.00. I still feel gold is rangebound between 1560.00 and 1635.00.
S&P's: Mar. S&P's are currently 15.00 higher at 1214.00. Yesterday we were stopped out of recent long positions as the market broke due to declines in the Banking sector. My advice, stand aside until the New Year. I feel the market will ultimately go higher, but for the near term it's going to be all about Europe.
Currencies: As of this writing the Mar. Euro is trading 70 higher at 1.3096, the Swiss 80 higher at 1.0784, the Yen 18 higher at 1.2874 and the Pound 163 higher at 1.5670. Except for owning some out of the money puts in the Euro and the Yen I recommend the sidelines for the rest of the year.
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