Financials: Sept. Bonds are currently 4 higher at 131'11. This morning CPI came out up 0.3%, in line with expectations. Retail Sales were up 0.4%, also in line with expectations. As mentioned yesterday, the market is currently trading close enough to long term resistance of 132'00 that I am willing to try the short side of the market for short term trading (1-5 days). Near term support is currently the 130'00 level and resistance 132'00.
Grains: Yesterday Nov. Beans closed 13 cents higher, Dec. Corn 10 higher and Dec. Wheat 18 higher. Over night Beans were 5 higher, Corn 3 higher and Wheat 9 higher. Exports and Russian weather continue to push prices higher. We remain long out of the money calls and/or call spreads in Dec. Corn.
Cattle: Yesterday Live Cattle closed 25 higher in the lead Aug. contract to slightly lower in all other contracts. Feeder Cattle closed 80-100 lower because of higher feed grain prices. Hedgers in Feeder Cattle may consider covering futures positions and purchasing out of the money puts given the recent decline in prices.
Silver: Sept. Silver is currently 2 cents lower at 18.04. We remain long the Dec. Silver 20/22 call spread. As for futures, I will remain on the sidelines until the market either trades below 17.50 or closes above 18.50.
S&P's: Sept. S&P's are currently 2.50 higher at 1081.75. Yesterday we covered all short biased positions and remain on the sidelines for the moment. Support is currently 1072.00 and resistance 1094.00.
Currencies: As of this writing the Sept. Euro is 5 lower at 1.2817, the Swiss 3 lower at .9513, the Yen unchanged at 1.1646 and the Pound 36 higher at 1.5600. I am on the sidelines at the moment awaiting a rally in the Pound and Euro to buy out of the money Dec. puts and/or put spreads, having missed out on this weeks break in those markets.