Financials: Bonds are currently 1'20 lower at 136'18 and the 10 Yr. Notes 22 lower at 129'19. Better than expected Consumer spending, up 0.8% vs. expectations of 0.5%, has pushed rates a bit higher (the price of Bonds lower) this morning. The Bonds are now approaching support in the 135'16 area where I will be willing to try the long side of the market. Resistance isa currently the 139'00 area. I am still only looking at short term trading opportunities.
Grains: On Friday Beans closed 30 cents higher, Corn 23 cents higher and Wheat 9 higher. Over night Beans were 13 higher, corn 7 higher and Wheat 5 higher. I recommend taking profits on all long futures, calls and call spreads as these markets are starting to appear over bought.
Cattle: On Friday both Oct. Live Cattle and Oct. Feeder Cattle closed slightly more than 100 points higher. My recommended protective buy stops against short positions for both of these markets were penetrated on Friday allowing us to take profits from recent short positions. I am on the sidelines.
Silver: Dec. Silver is currently 43 cents lower at 40.56. Support is currently the 38.00-39.00 level. I will be looking to reinstate long positions below the 38.50 level. Dec. Gold is currently 10.00 lower at 1787.00. If you went short in the 1810.00 area, consider taking the short term profit. If you are looking at this market for a long term short position, use a protective buy stop just above the overnight high of 1841.50.
S&P's: Sept. S&P's are currently 16.00 higher at 1192.00. Reassuring comments on Friday by Bernanke (slow but steady growth) helped take the market off early lows in the 1140.00 area. Over night improvement in European equity markets (particularly Greece) and positive U.S. consumer spending numbers have helped push the market above Friday's resistance of the 1174.00-1180.00 level. I feel the market is currently getting a bit ahead of its and would say we have a wide level of resistance in the 1190.00-1210.00. I had been willing to trade from the long side for most of last week and now have taken a neutral stance. If you remain long either take profits or use a very close stop
Currencies: As of this writing the Sept. Euro is currently 48 higher at 1.4528, the Swiss 153 lower at 1.2242, the Yen 42 lower at 1.2999 and the Pound 79 higher at 1.6411. A rally in European equities (particularly Greek bank stocks) have a bit of the steam out of safe haven currencies such as the Swiss and the Yen. We remain long the Oct. Yen 1.24 put.
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