Financials: Sept. Bonds are currently 2 lower at 148'17 and the 10 Yr. Notes 2 lower at 133'04. This mornings Initial Jobless Claims Report showed -2,000 vs. expectations of dow 1000. Yesterday's FOMC meeting left rates unchanged. However, the talk of continuation of Operation Twist (the buying of treasuries with maturities of 6-30 years and the selling of maturities of 3 years or less in an effort to keep rates low) kept the Bonds in a high volatility trade rallying from 147'25 to 149'10, back to 147'30 and back up to 149'00 as traders tried to absorb the impact of this decision. The Fed also posed the notion that the economy was growing slower than expected and inflation was still low (no surprise). Technically the Bonds made a new low the week. I have recommended trading from the short side of the market on rallies for the past week or so, that being said, I am changing my bias to neutral for the day. Support is currently 147'26 and resistance 149'18.
Grains: July Corn is currently 2'0 lower at 610'4 and Dec. Corn 4'4 lower at 562'0. July Beans are currently 4'4 lower at1442'0 and July Wheat 2'0 lower at 662'0. Hot dry weather particularly East of the Mississippi has pushed these markets higher over the last few sessions and have seen new crop gain on old crop particularly in Corn. Any prospect of percipitation will reverse this course. To be honest, I'm hesitant to follow these markets to the upside at present based soley on the weather and choose to be on the sidelines at the moment. That being said I will be a willing buyer on a 30 cent break in Corn if the market allows.
Cattle: Aug. LC is currently unchanged at 117.10 and Aug. FC slightly lower at 154.75. I still like the long side of the market on sharp breaks from current levels. Long term support for Aug. LC is the 114.50 level.
Silver: July Silver is currently 77 cents lower at 27.60 and Aug. Gold 27.00 lower at 1589.00. We remain lightly long Silver. As I have mentioned over the last few months, I recommend a position size in Silver equivalent to 5-10% of your overall investment portfolio given the cash value of the futures contract. As for Gold, support is currently the 1570-1580.00 area and resistance the 1630.00-1640.00 area.
S&P's: Sept. S&P's are currently 2.00 lower at 1349.00. My bias has once again turned negative. Slower growth, a weakening Dollar and Europe in general has me a bit bearish at present levels. I am seller bewteen the 1350 and 1360 area. A close above the 1375.00 level will negate my current market sentiment.
Currencies: As of this writing the Sept. Euro is 14 lower at 1.2662, the Swiss 11 lower at 1.0555, the Yen 110 lower at 1.2483 and the Pound 17 lower at 1.5667. I am on the sidelines for the moment.
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