Financials: Sept. Bonds are currently 13 lower at 125'30. Near term support of 126'07 has been violated putting the next level of support in the 125'16 area. We continue to hold the combination of short Bonds and short the Sept. Bond 124'00 put. If the market trades below the 125'22 level I feel it is an area where we need to make some position adjustments. Either take profits or consider covering the 124'00 put and going long the 10 Yr. Note which would leave you with the long 10 Yr. Note/ short Bond spread.
Grains: Yesterday Nov. Beans were 2 cents lower, Dec. Corn 3 lower and Dec. Wheat 1 lower. Over night Beans were 3 higher, Corn 2 lower and Wheat 1 lower. Yesterday's Crop Condition Report showed Corn 73% good to excellent, a 2% increase from a weak ago, and Beans showed a slight decrease in crop rating. We continue to hold out of the money call spreads in Nov. Beans. I will be looking to take profit on these call spreads if the Nov. futures trade above the 970'0 level.
Cattle: Yesterday Live and Feeder Cattle closed moderately lower (50-80 points). The markets are about 30 higher this morning in part due to slightly lower feed grain prices over the past couple of sessions. I am still looking to be a seller in Oct. Live Cattle in the 93.00 area and Sept. and Oct. Feeder Cattle above the 115.00 level.
Silver: Sept. Silver is currently 34 cents higher at 18.26. We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently 9.00 higher at 1085.50. Near term resistance in the 1076-1080.00 area has been violated to the upside. The next level of resistance is the 1090-1110.00 area, where I am looking to go short the market by either selling futures, selling out of the money calls or buying out of the money puts. Support is currently the 1072.00 level for the near term.
Currencies: As of this writing the Sept. Euro is 24 higher at 1.2621, the Swiss 34 higher at .9479, the Yen 12 higher at 1.1317 and the Pound 110 higher at at 1.5140. If you remain short the Yen continue to use a protective buy stop at 1.1380. We continue to hold a short bias to the Euro (either short futures, short calls or long puts). If the Euro should trade below the 1.2450 level over the next few sessions, take profits.