Financials: Sept. Bonds are currently 24 lower at 123'27. As mentioned yesterday, I like the short side of the market and recommend being positioned with either a spread (short the Bonds and long either the 10 Yr. or 5 Yr. Notes) or using a combination of short Bonds and short an out of the money put (preferably with a strike price of 120'00 or lower). Near term support remains at 123'06 with near term resistance at 124'26.
Grains: Yesterday Beans were 4 cents lower, Corn 1 higher and Wheat unchanged. Over night Beans were 4 higher, Corn fractionally higher and Wheat 1 higher. As mentioned yesterday I feel that the Dollar is near a short term top and that a break in the value of the Dollar will have a positive effect on Grain prices. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. I prefer the long side of the market with a protective sell stop in July Beans and July Corn 5 cents below the recent lows.
Cattle: Yesterday Live Cattle closed slightly higher and Feeder Cattle 35-50 higher. Over night Live and Feeder Cattle are 50-80 higher. If you went long Aug. Cattle use a protective sell stop just below the 87.00 level. If the market trades above the 89.00 level either take the short term profit or raise your sell stop to the 87.45 level.
Silver: July Silver is currently 19 cents lower at 18.29. I am currently on the sidelines.
S&P's: Jun. S&P's are currently 7.25 higher at 1066.50. Yesterday the market gave the opportunity to go long below the 1045.00 level. If you remain long either take profits or raise your protective sell stop to the 1059.50 level. Near term resistance remains in the 1069.00-1073.00 area.
Currencies: As of this writing the Sept. Euro is 100 points higher at 1.2034, The Swiss 56 higher at .8738, the Yen 37 lower at 1.0933 and the Pound 158 higher at 1.4541. The Sept. Dollar Index is 71 lower at 88.23. If you went long the Euro on yesterday's recommendation either take the short term profit or use a protective sell stop in the 1.1980 area.