Financials: Jun. Bonds are currently 8 lower at 120'17. For the moment the European debt crisis is somewhat abated. The new fear is global inflation as evidenced by the new yearly highs in Gold and Silver as people have lost a bit of faith in currency. If you feel there is the possibilty of an increase in interest rates by the end of the year consider going short Dec. Eurodollars which are currently trading at 99.200. As for the Bonds, near term support remains at 119'19 and near term resistance is currently 123'16.
Grains: Yesterday Beans were 5 cents higher, Corn 6 higher and Wheat 1 higher. Over night Beans were 4 higher, Corn 6 higher and Wheat 5 higher. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. I still like the long side of July Wheat on a sharp break and the long side of July Beans on a break below the 950'0 level if the market allows.
Cattle: Yesterday Live Cattle closed slightly higher and Feeder Cattle slightly lower. We remain short Aug. Cattle with a protective buy stop at 95.70. Producers should continue to hold long out of the money put and short out of the money call positions. As of this writing the market is looking slightly lower.
Silver: July Silver is currently 19 cents higher at 19.48. We continue to hold a long position. Overnight the market traded through the resistance level of 19.45 making a high of 19.68. Either take profits or raise your protective sell stop to the 18.76 level.
S&P's: Jun. S&P's are currently 5.50 higher at 1157.75. Yesterday my recommended buy stop at 1156.00 was penetrated taking us out of any remaining recent short positions. Support is currently 1134.00 and resistance 1167.00. I still like the short side of this market and will once again be a seller in the 1160.00 area with a protective buy stop at 1184.00.
Currencies: As of this writing the Jun. Euro is currently 2 lower at 1.2694, the Swiss 10 higher at .9028, the Yen 29 lower at 1.0753 and the Pound 66 lower at 1.4885. The Jun. Dollar Index is 3 higher at 84.64. I remain on the sidelines as the market in my opinion is too close to last weeks lows to be pressuring the short side of currencies at this time. Treat
the Euro as a trding market between 1.2580 and 1.3050.