Financials: Dec. Bonds are currently 21 lower at 141'03 and the 10 Yr. Notes 8 lower at 130'02. Needless to say, events affecting European debt are still dominating these markets as traders enter and exit the Bonds depending on the need for a safe haven in what has been described in the media as a risk on, risk off atmosphere. My bias has now changed to stand aside from being friendly to this market last week when lows were made below the 136'00 level.

Grains: Yesterday beans closed a penny higher, Corn 9 lower and Wheat 6 lower. Over night Beans were 22 higher, Corn 6 higher and Wheat 6 higher. The fluctuations in the Dollar continues to dominate the market direction. For the moment I feel that near term trends are up. As mentioned last week I will be a buyer in Dec. Corn around the 630'0 level. Resistance for dec. Corn is currently the 660'0 area.

Cattle: Yesterday Dec. Live Cattle closed 40 higher at 122.00 and Nov. Feeder Cattle 55 lower at 142.30. Earlier in the week we were stopped out of short positions in Dec. LC once the market traded above the 120.70 level.

Silver: Dec. Silver is currently 10 cents higher at 34.05. At the risk of sounding redundant, if you remain long term bullish, 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 lower at 1232.00. The prospect of a Greek referendum on acceptance of debt bailout and austerity measures has this market bouncing around in harmony with the fluctuating Dollar. Treat as a trading affair between the 1220's and 1250's.

Currencies: As of this writing the dec. Euro is trading 72 lower at 1.3685, the Swiss 71 lower at 1.1264, the Yen 4 lower at 1.2819 and the Pound 14 higher at 1.5969. We remain long the dec. Yen 1.24 put. European debt continues to dominate the Euro (see Financial and S&P comment).

Regards,
Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com