Financials: Bonds are currently 15 lower at 126'12. This mornings Jobless Claims were down by 11,000 versus expectations of a decrease of only 4,000. This wasn't great news but the market has looked upon the number as constructive. Yesterday we were stopped out of a recent long position from the 126'13 level when the market traded through the 126'03 level, putting us on the sidelines. Near term support is currently 125'26 and near term resistance 127'12.
Grains: Yesterday Nov. Beans were 12 cents higher, Dec. Corn 13 higher and Dec. Wheat 20 cents higher. Over night Beans were 6 higher, Corn 5 higher and Wheat 10 higher. The market is still being led by Wheat which is reacting to quality concerns and unusually hot weather in Russia ( having a potential hazardous affect on the Russian crop). Also a weak Dollar, which is again on new recent lows, has raised support levels for all the Grains. If you remain long Nov. Beans or Dec. Corn, either take profits or raise your protective sell stop to 10 cents above your entry level. We remain long out of the money call spreads in Dec. Corn.
Cattle: Yesterday Live Cattle closed 10-30 higher and Feeder Cattle 30 lower-30 higher depending on the contract month. We remain short Oct. Cattle and will lower our protective buy stop to the 95.20 level.
Silver: Sept. Silver is currently 11 cents higher at 17.56. We remain long the Dec. 20/22 call spread. I am still on the sidelines in futures but will be looking to start accumulating a long position if the market trades below the 16.80 level.
S&P's: Sept. S&P's are currently 8.00 higher at 1110.00. A friendly Jobless Claims Report has bouyed the market this morning. I am still on the sidelines in futures and looking to sell the Sept. 1140 call in the 21.00 area as a more coservative means of capturing either a sideways or down market. Major resistance remains at 1129.50.
Currencies: As of this writing the Sept. Euro is 111 higher at 1.3090, the Swiss 150 higher, the Yen 44 higher at 1.1487 and the Pound 57 higher at 1.5736. The Sept. Dollar Index is currently 62 lower at 81.69. Bottom line, my short bias to both the Euro and Swiss is not working. I will liquidate my positions over the next few sessions.