Financials: Sept. Bonds are currently 6 lower at 127'29. The long 10 Yr. Note/ short Bond spread is currently 4'23 premium the Bonds. If you remain in this spread, I would continue to hold and look to liquidate in the 4'00 premium the Bonds area. Near term support is currently 127'02 and near term resistance 128'12. I am looking to the short side of the market for short term trades on rallies to resistance. The yield on the 30 Yr. Bond is once again below the 4% level and the yield on the 10 Yr. Note once again below 3%.
Grains: Over night Beans were 10 cents lower, Corn 6 cents lower and Wheat 4 cents higher. Easing temperature worroes and predictions of more favorable conditions have put some pressure on the Grains this morning. We have taken profits from call spreads in Nov. Beans. Producers should be looking for hedging opportunites in the 400'0 area.
Cattle: Live and Feeder Cattle look mixed to higher this morning as the market is currently at a bit of a discount to cash on the nearby Aug. contract. We are currently short Oct. Cattle above the 93.00 level with a protective buy stop in the 95.65 area.
Silver: Sept. Silver is currently 9 cents lower at 17.69. We contniue to hold the Dec. 20/22 call spreads. I am on the sidelines for the moment as far as futures are concerned.
S&P's: Sept. S&P's are currently 5.00 higher at 1068.00. We contniue to hold a short bias (either short futures, short out of the money calls or long puts) Recommended action to take: If you are short futures, take the short term profit. If you are short out of the money calls (above the 1120 strike price) stay with the position. If you are long puts, roll your position into a lower strike price and take some money off the table.
Currencies: As of this writing the Sept. Euro is 10 higher at 1.2953, the Swiss 15 lower at .9512, the Yen 39 lower at 1.1503 and the Pound 56 lower at 1.5245. We contniue to have a short bias in the Euro. Watch for possible double top on the Swiss, a close below .9450 will be considered negative.