Financials: Sept. Bonds are currently 10 lower at 127'21. The yeild on the 30 Yr. Bond remains just below the 4% mark (3.98%) and the yield on the 10 Yr. Note just below 3% (2.96%). I still feel that yields will go above these benchmarks to last weeks levels of 4.1% and 3.04% respectively. If you remain spread long the 10 Yr. Note/ short Bonds (currently at 4'22 premium the Bonds) I would look to liquidate the position at 4'00 premium the Bonds. Near term support remains at 127'02 and near term resistance at 128'12. I still prefer the short side of market on rallies to resistance for short term trades.
Grains: Yesterday Nov. Beans were a penny higher, Dec. Corn 6'4 lower and Dec. Wheat 4'4 lower. Over night Beans were 5 higher, Corn 4 higher and Wheat 6 higher. Renewed forecasts of hot weather for the next few days have once again had a bullish effect on the Grains. We currently have no positions. I would recommend out of the money call spreads in Dec. Corn (example: long the 420'0 call/short the 440'0 call). I will also be a buyer in Dec. Corn below the 377'0 level if the market allows. Support in Nov. Beans is currently 957'0 and resistance 992'0. Producers should be looking for hedging opportunities in the 400'0 area in Dec. Corn.
Cattle: Yesterday Live and Feeder Cattle were slightly higher. We remain short Oct. Live Cattle with a protective buy stop in the 95.65 area. As Feeder Cattle approach the 115.00 level in Sept. and Oct. contracts, producers should be looking for hedging opportunities.
Silver: Sept. Silver is currently 13 cents higher at 17.83. We remain long the Dec. 20/22 call spread.
S&P's: Sept. S&P's are currently 6.00 higher at 1086.00. Good earnings especially in tech stocks have bouyed the market since late yesterday. Support is currently 1053.00 and resistance 1091.00. I once again prefer the short side of the market on rallies to resistance. If you remain short out of the money calls or long out of the money puts, I recommend staying with the positions.
Currencies: As of this writing the Sept. Euro is currently 76 lower 1.2817, The Swiss unchanged .9528, the Yen 18 higher at 1.1491 and the Pound 41 lower at 1.5221. We continue to hold a short bias in the Euro. Has the Euro put in a short term double top above the 1.3000 level? The market is now nearly 200 points below yesterday's high. If you remain short calls or long puts I would recommend staying with the position. If you remain short futures I recommend using a protective buy stop in the 1.2870 level or liquidating the position on any further breaks. The next levels of support are the 1.2780 level and then 1.2680 level. If the market trades below 1.2780 lower your buy stop to the 1.2850 level. The Double top in the Swiss is still intact in the .9622 area. A trade below the .9470 level will generate a sell symbol.