Financials: Jun. Bonds are currently 6 lower at 121'27. Support remains at 120'03 and resistance remains at 123'16. Over night the market had quite a wide range (121'18- 122'26) as the EuroFX made a 4 year low before rallying back to about unchanged. Continue to treat the Bonds as a trading market betweeen support and resistance. We remain short the Dec. Eurodollar.
Grains: On Friday Beans were 11 cents lower, Corn 10 lower and Wheat 7 lower. Over night Beans were 5 lower, Corn 1 lower and Wheat fractionally higher. I still like the idea of going long July Beans below 940'0 and long July Wheat in the 457'0 area. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle.
Cattle: On Friday both Live and Feeder Cattle closed 200+ lower. Aug. Cattle traded through the 93.50 support level closing at 92.00. If you remain short Aug. Cattle either take profits or lower your protective buy stop to the 93.65 level. For producers who bought out of the money puts that are now in the money consider rolling your position down 1 or 2 strike prices. If you sold out of the money calls consider covering these positions if your strike price is trading below 15 points.
Silver: July Silver is currently 13 cents higher at 19.36. We remain long with a protective sell stop at 18.76. Near term resistance is currently the 19.80 level. If the market trades above 19.80 raise your sell stop to the 19.03 level.
S&P's: Jun. S&P's are currently 3.00 higher at 1138.50. Over nighht the market traded as low as 1120.25 before rallying to slightly higher as the Dollarv started giving up some of its overnight gains early this morning. All of my near term downside expectations have been met at this time and I recommend covering short futures positions.
Currencies: As of this writing the Jun. Euro is 12 lower at 1.2375, the Swiss 11 lower at .8835, the Yen 33 lower at 1.0816 and the Pound 87 lower at 1.4471. Overnight the Euro came close to testing major support in the 1.2200 area (the low was 1.2235) before rallying to unchanged for the day. I feel this market is oversold at the moment and I am actually willing to initiate short term trades from the long side of the market. I am also willing to sell the 1.23/1.25 Jun. put spread at 130 points or better if the market allows. This carries a risk of 70 points and a profit potential of 130 points. The Jun. Dollar Index is currently 1 lower at 86.22 after making an overnight high of 87.21.