Financials: Sept. Bonds are currently 8 lower at 151'12 and the 10 Yr. Note 3 lower at 134'18. The Bonds continue to rally with yields in the 2.5% area for the 30 Yr. and just below the 1.5% level (1.47%) for the 10 Yr. as a result of Operation Twist and a slowing economy in China. That being said, we are now technically near enough long term resistance of the 152'00-153'00 levels that the 30 Yr. Bond is worth watching for a short sale on a sharp rally into the mid 152 level (152'16), the recent high is 151'28.
Grains: Dec. Corn is currently 15'0 higher at 747'0, Nov. Beans 27'0 higher at 1556'0 and Dec. Wheat 17'0 higher at 877'0. On Wed. the markwt rallied sharply just after a Crop Report which showed tight supplies and reduced yields on to consequently break sharply and close lower. The market has since recovered any lost ground and is currently on new highs in Corn by a few cents. Support for Dec. Corn remains in the 680-690'0 area. If you went long Wed. either take profits or you a close stop. I caution against going long on rallies and recommend using sharp breaks for buying opportunites. Weather forecasts remain hot with very little percipitation. For producers, I continue to recommend using out of the money put options for hedging opportunities.
Cattle: Aug. LC is currently 57 lower at 116.45 and Aug. FC down the 300 point limit at 138.22. Higher feed grain prices are going to continue pressure these market, especially Feeder Cattle.
Silver: Sept. Silver is currently 2 cents lower at 27.45 and Aug. Gold 15.00 higher at 1580.00. We remain lightly long Silver. If you went long Gold below the 1560.00 level (see the Report from Tues. 7/10) either take profits or use a protective sell stop in the 1570.00 area.
S&P's: Sept. S&P's are currently 3.00 higherat 1332.50. Treat as a trading affair between the 1322.00 area and 1343.00. To be honest, at this time I prefer the long side of the market on breaks but do not have any kind of technical confirmation to warrant holding onto a long position.
Currencies: As of this writing the Sept. Euro is trading 10 lower at 1.2196, the Swiss 5 higher at 1.0175, the Yen 7 higher at 1.2627 and the Pound 64 higher at 1.5491. My down side objectives have been met in the Euro and I recommend taking profits onany short futures or long put option positions. Short term and day traders might consider the long side of the Euro on breaks with a reasonably close protective stop.
888.908.4310 | 312.264.4310