Financials: Sept. Bonds are currently 9 lower at 124'24. We continue to hold the combination of short Bonds and short the Sept. Bond 120'00 put. In an effort to afford a bit more risk protection I am willing to buy back the Sept. Bond 120'00 put and sell the Sept. Bond 122'00 put and collect 35 points (35/64ths). This will leave us short Bonds and short the Sept. Bond 122'00 put.
Grains: Yesterday Nov. Beans closed 11 cents lower, Dec. Corn 1 lower and Dec. Wheat 1 higher. Over night Beans were 4 higher, Corn fractionally higher and Wheat fractionally lower. Today is expiration for July options. We continue to hold out of the money call spreads on Nov. Beans. We will be on the sidelines as far as futures are concerned until next week.
Cattle: Yesterday Live and Feeder Cattle closed moderately higher due to a firmer cash market and declining feed grain prices. I will be a buyer in Aug. Cattle below the 87.50 level if the market allows.
Silver: July Silver is currently 13 cents higher at 18.86. My only recommendation remains the combination of long the Dec. Silver 20/22 call spread and short a mini silver contract.
S&P's: Sept. S&P's are currently 1.00 higher at 1071.50. Yesterday we covered 1140 call below the 23.00 level , which puts us on the sidelines for the moment. Support of 1179.0 has been penetrated which now puts near term support at 1065.00 and long term support in the 1040.00-1050.00 area. Market influences for the near term will the proposed FINREG bill, G20 meeting and next weeks monthly Unemployment Report. I am now leaning to the long side of the market on sharp breaks for short term trades.
Currencies: As of this writing the Sept. Euro is 24 lower at 1.2315, the Swiss 38 higher at .9121, the Yen 18 higher at 1.1201 and the Pound 20 higher at 1.4954. We remain short the Sept. Euro 1.2800 call. I am also looking to the short side of yen above the 1.1250 level (either going short futures, going short out of the money calls or buying out of the money puts).