Financials: Sept. Bonds are currently 26 lower at 126'13. The long 10 Yr. Note/ short Bond spread is currently at 4'05 premium the Bonds. If you remain in this spread, I feel it is close enough to my objective of 4'00 premium the Bonds to liquidate this position. Technically the market is testing near term support at current levels. Near term resistance is now the 127'18 level. I am recommending the long side of market at present levels with a 10 point stop for short term trades.
Grains: Yesterday Nov. Beans closed 15 cents lower, Dec. Corn 6 lower and Dec. Wheat 6 lower. Over night Beans were 6 higher, Corn 4 higher and Wheat 9 higher. The market gave an opportunity to go long Dec. Corn below 377'0 and Nov. Beans below the 963'0 levels yesterday. If you went long, I recommend using a 12 cent protective sell stop in Dec. Corn and a 20 cent stop in Nov. Beans. We remain long out of the money call spreads in Dec. Corn. The Dollar is on a new recent low this morning which in my opinion should provide some support to the Grains.
Cattle: Yesterday Live Cattle closed 75-95 lower on nearby contracts and Feeder Cattle slightly lower. The market opened slightly higher in response to Friday's Cattle on Feed Report before breaking to a one week low. We remain short Oct. Cattle with a protective buy stop at 95.65. If the market trades below the 93.50 level I recommend lowering your stop to the 95.30 level. A further break below the 93.00 level will prompt me to lower my stop to the 94.70 level.
Silver: sept. Silver is currently currently 21 cents lower at 17.98. We remain long the Dec. 20/22 call spreads. I do not have a futures recommendation at this time.
S&P's: Sept. S&P's are currently 7.00 higher at 1117.00. Yesterday the market rallied through near term resistance on constructive Housing and Consumer news. Major resistance is now the June 21st high of 1129.50. As I mentioned yesteray I am staying away from futures for a few days and looking to sell the Sept. 1140 call in the 24.00 area. Even though there is only limited profit potential and unlimited risk by selling options, I feel this is a safer strategy than futures at the moment.
Currencies: As of this writing the Sept. Euro is currently about unchanged at 1.2990, the Swiss 79 lower at .9456, the Yen 107 lower at 1.1410 and the Pound 62 higher at 1.5535. We continue to hold a short bias to the Euro. The Swiss has finally given an anticipated sell signal, trading below the .9470 level. If you have established a short position in the Swiss, I recommend a protective buy stop above the .9630 level.