Financials: Jun. Bonds are currently 26 lower at 124'14. Yesterday we liquidated the long 10 Yr. Note/ short Bond spread at a loss putting us on the sidelines. The recovery in Equities and the Euro mid to late session yesterday provided some selling pressure in equities taking Bonds from the 126'00 level to this mornings lower prices. Near term support is currently 123'26 with near term resistance at 125'24. Treat as a trading market.
Grains: Yesterday beans were 10 cents lower, Corn 6 lower and Wheat 7 lower. Over night Beans were 7 higher, Corn 4 higher and Wheat 6 higher. With the Dollar settling back a bit over the last 24 hours the Grain markets have found a reason to retrace a good part of yesterday's losses. Planting and crop conditions have not been much of a factor compared to the international debt situation which has seen delveraging (liquidation) over the last few sessions. We have been stopped out of a recent long July Bean position. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle.
Cattle: Yesterday Live and Feeder Cattle closed 100+ lower on new recent lows. We currently have no speculative positions in this market, however, I feel that it is time to start looking at the long side of the market. Support for Aug. Cattle is currently in the 87.50-88.50 area. Producers who remain long out puts as price insurance might consider rolling their positions down one or two strike prices. I recommend covering any out of the money short call positions.
Silver: July Silver is currently 42 cents higher at 18.21. We remain long with a smaller than usual position.
S&P's: Jun. S&P's are currently 8.25 higher at 1081.25. Yesterday's rally off a nearly 3% lower market to about unchanged was quite impressive. I now feel a bit more comfortable looking for a trading opportunity in this market as we now have a basis to determine some levels of support and resistance. For the near term support is the 1056.00 level and resistance the 1086.00 level. I am willing to return to the short side of the market on a rally to resistance with a 15.00 point risk.
Currencies: As of this writing the Jun. Euro is trading 42 lower at 1.2276, the Swiss 19 higher at .8661, the Yen 12 lower at 1.1087 and the Pound 20 higher at 1.4385. Yesterday the Euro rallied nearly 200 points off of the interday low of 1.2181 before settling back to current levels. Support remains in the 1.2200-1.2300 area. I am now on the sidelines.