Financials: Dec. Bonds are currently 5 lower at 139'19 and the 10 Yr. Note 1 lower at 128'22. This mornings PPI Report showed an increase in producer prices of 0.8% vs. expectations of an increase of 0.3% taking the Bonds down to their current level from an overnight high of 141'00. Continue to treat as a trading affair between 138'00 to 141'15. The near term trend remains down.

Grains: Yesterday Beans closed 17 cents lower, Corn fractionally higher and Wheat 1 higher. Over night Beans were 22 lower, Corn 9 lower and Wheat 9 lower. Continue to treat dec. Corn as a trading market between 615'0 and 655'0. We remain long out of the money calls and/or call spreads in Dec. Corn.

Cattle: Yesterday Dec. Live Cattle closed 45 higher at 123.65 and Nov. Feeder Cattle closed unchanged at 144.425. Over night these markets are slightly lower. We remain short Dec. LC from above the 122.50 level. For the moment we are using a protective buy stop at 125.10. If the market trades below the 121.90 level, either take the short term profit or lower your stop to your break even level.

Silver: Dec. Silver is currently 85 cents lower at 30.96. If you remain long term bullish this market consider going long out of the money calls and/or call spreads for March 2012 expiration.

S&P's: Dec. S&P's are currently 2.00 higher at 1196.00. If you went short out of the money calls yesterday with a strike price of 1220 or higher consider taking profits or rolling the position to a higher strike price to reduce risk.

Currencies: As of this writing the Dec. Euro is currently 46 lower at 1.3681, the Swiss 30 lower at 1.1104, the Yen 8 higher at 1.3037 and the Pound 41 lower at 1.5701. We remain short the Euro and recommend either taking profits or lowering you buy stop to the 1.3790 area. We remain long out of the money puts in the Dec. Yen.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com