Financials: Sept. Bonds are currently 3 lower at 150'16 and the 10 Yr. Note 2 lower at 134'15.5. Continued flight to quality (safety)have pushed yields down on longer term instruments. Denmark, Finland and Germany now have negative interest rates on short term instruments. I continue to have a neutral bias on Bonds at the moment but will change my bias to negative as we approach long term resistance in the 152'00 to 153'00 areas.
Grains: Dec. Corn is currently 13'4 lower at 716'4, Nov. Beans 13'4 lower at 1534'0 and Dec. Wheat 16'0 lower at 827'6. Dry weather continues to put a base of support under the market as analysts lower crop yield due to the hot dry spell affecting most of the growing areas East of the Mississippi. As mentioned in last Friday's letter, support was 650'0 and resistance 720'0 for Dec. Corn. Today I am raising support to 680'0. If you went short Dec. Corn in the 720'0 area, use a protective buy stop just above yesterday's high of 733'0. If the market trades below 708'0 either take the short term profit or lower your buy stop to the 618'0 level. Producers should be looking for hedging opportunities with out of the money puts.
Cattle: Aug. LC is currently 32 lower at 118.72 and Aug. FC 20 higher at 144.47. I still like the short side of Aug. LC from the 120.00 area.
Silver: Sept. Silver is currently 11 cents lower at 27.33 and Aug. Gold 4.00 higher at 1593.00. We remain lightly long Silver. I am looking to be a buyer in Aug. Gold below 1560.00 if the market allows.
S&P's: Sept. S&P's are currently 5.25 higher at 1354.75. The market has held support in the 1343.00 area and has also held resistance in the 1360.00 area. Treat as a trading affair.
Currencies: As of this writing the Sept. Euro is trading 35 lower at 1.2286, the Swiss 28 lower at 1.0238, the Yen 27 lower at 1.2601 and the Pound 5 higher at 1.5521. I am looking to be a buyer in the Euro below the 1.2200 level if the market allows.
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