Financials: Sept. Bonds are currently 1'00 lower at 145'11 and the 10 Yr. Notes 15 lower at 130'15. This morning's ADP Private Sector Jobs Report showed an increase of 91,000 jobs versus a pre-report estimate of 75,000. Yesterday the ECB announced that they would make an effort to recapitalize banks and do what is necessary to stimulate their member economies which rallied the Euro, U.S. equities and broke the Bonds off their recent highs removing a bit of the fear premium. As mentioned last week I want to be a seller in Bonds or the 10 Yr. !0 notes if the Bonds trade above the 145'00 level (yesterday's high was 146'04).
Grains: Since my last Report (9/27/2011) the Grains have broken sharply as a result of Sept. 30th's quarterly stocks report which showed substantially more Corn and Beans than had been anticipated. We remain long out of the money Dec. Corn calls and/or call spreads. I feel that Dec. Corn has now established a base of support under the 580'0 level and may once again be worth trading from the long side with protective sell stops just below the recent low of 572'0.
Cattle: Yesterday Dec. Live Cattle closed 1.77 lower at 121.55 and Nov. Feeder Cattle 1.95 lower at 140.90. I still feel that Dec. Live Cattle is a sale above the 122.00 level with protective buy stops at 124.35.
Silver: Dec. Silver is currently 50 cents lower at 29.33. We continue to hold a small long position. If you are long term bullish this market I recommend buying March out of the money call spreads. Dec. Gold is currently 10.00 higher at 1626.00. Support remains in the 1520.00 area.
S&P's: Dec. S&P's are currently 1.00 higher at 1115.00. As I had mentioned last week, long term support remains just under the 1090.00 level, an area where I am willing to be a buyer. If you went long, either take profits or use a protective sell stop at 1105.00. Resistance is currently the 1130.00 area. Actions and proposals by the ECB yesterday rallied this market off of recent lows (1068.00) late in the session yesterday.
Currencies: As of this writing the dec. Euro is currently 70 higher at 1.3306, the Swiss 34 higher at 1.0870, the Yen 20 higher at 1.3036 and the Pound 70 higher at 1.5438. Other than some expiring out of the money puts in the Oct. Yen we have no currency positions at this time.
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