Financials: Jun. Bonds are currently 26 lower at 123'21. Yesterday the market rallied off of support in the 123'26 level when it was rumored that China was reviewing it's holdings of European debt inspite of poor results of a U.S. Treasury auction. Once the rumors were denied overnight the market returned to it's prerumor lows. Near term support has been broken putting the next level of support in the 123'06 area. There were a couple of reports this morning: Weekly Jobless claims were down 14,000 to 460,000. Contniuing claims were down 49K to 4.61million. GDP was revised to 3.0%, somewhat lower than an expected 3.4%. I will be on the sidelines until after the Holiday weekend when the Sept. contract will be considered lead month.

Grains: Yesterday were 7 cents higher, Corn 7 higher and Wheat 1 higher. Over night Beans were 5 higher, Corn 1 higher and Wheat 5 higher. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle.

Cattle: Yesterday Live and Feeder Cattle closed moderately higher. Producers should remain long puts for price insurance and I recommend covering any short out of the money call positions. I will wait until after the Holiday weekend before entering any new speculative positions.

Silver: July Silver is currently 4 cents lower at 18.26. We contniue to hold a long position. If the market trades above the 18.80 level, I recommend entering a protective sell stop at your break even level of take profits.

S&P's: Jun. S&P's are currently 24.00 higher at 1085.00. Yesterday the market ran the gamut of support and resistance of 1056.00-1086.00 and gave a good trading opportunity. This morning I am willing to once again try the short side with a close stop.

Currencies: As of this writing the Jun. Euro is 34 higher at 1.2235, the Swiss 7 lower at at .8622, the Yen 60 lower at 1.1048 and the Pound 60 higher at 1.4451. I am on the sidelines at the moment, however, I feel the Pound will be a good sale above the 1.4650 level.

There will not be a Report on Friday. Have a good Holiday Weekend!

 

Regards,

Marc