Financials: Sept. Bonds are currently 11 lower at 125'16 and the 10 Yr. Notes 5 lower at 124'12. The nob (10 Yr. Note/ Bond spread) is currently at 1'05 premium the Bonds. Durable Goods Orders came in down 2.7% vs. expectations of a rise of 0.4%. The Bonds continue to be range bound between near term support of 124'28 and near term resistance of 126'20. The market is still awaiting clues as to what compromises will be made concerning the debt ceiling. I remain on the sidelines.
Grains: Yesterday Beans closed 15 cents higher, Corn 12 higher and Wheat 5 higher. Over night Beans were fractionally lower, Corn 5 lower and Wheat 1 lower. Support for Dec. Corn remains at 654'0 and resistance at 692'0. We remain long out of the money call spreads in Sept. and/or Dec. Corn.
Cattle: Yesterday Aug. and Oct. Live Cattle closed 100+ higher and gained on deferred contracts for the first time in about a week. Support has held in the 109.00 area for Aug. Cattle and is now approaching resistance in the 112.25 area. Aug. Feeder Cattle closed about steady and has held the 135.00 support level.
Silver: Sept. Silver is currently 55 cents higher at 41.29. I feel the this market is in resistance and recommend either taking some profits from long positions or using a close stop. Aug. Gold is currently 8.00 higher at 1625.00 and has made a new high at 1628.80. I am cautiously negative to Gold at current levels.
S&P's: Sept. S&P's are currently 9.00 lower at 1317.00. Near term support of 1323.00 has been penetrated putting the next level of support in the 1308.00 area. Resistance has been lowered to the 1334.00 area. We remain short.
Currencies: As of this writing the Sept. Euro is 70 lower at 1.4428, the Swiss 12 lower at 1.2479, the Yen 15 higher at 1.2860 and the Pound 37 lower at 1.6376. I am watching the Swiss/Euro cross which has come in dramatically (the Swiss gaining on the Euro) and feel it is like a stretched rubber band about to snap back. That being said, at the moment I am just an observer from the sidelines. I prefer the short side of both of these markets.
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