Financials: Sept. Bonds are currently 18 lower at 134'24 and the 10 Yr. Note 15 lower at 128'03. The NOB spread is currently at 6'20 premium the Bonds. Yesterday we exited the long 10 Yr. Note/ short Bond spread in the 5'05 are premium the Bonds for a considerable loss. Yield on the 30 Yr. Bond is still flirting with the 3.65 area and the 10 Yr. yield is around 2.5%. I feel that these low yields will last only a short time till the 30 Yr. is back above 4.0% and the 10 Yr. above 3.05. That being said, I am going to stay on the sidelines for the next few sessions. FOMC meeting today.
Grains: Yesterday Beans closed 23 cents lower, Corn 17 lower and Wheat 22 lower. Over night Beans were 2 higher, Corn 1 higher and Wheat 2 higher. The Grains for the most part have been following the equities as witnessed by last nights sharply lower markets (the lows were 18 lower in Corn, 13 lower in Wheat and 28 lower in Beans) and recovery very early this morning in both equities and Grains. Support for Dec. Corn is back to the 670'0 area. We remain long call spreads in Sept. and/or Dec. Corn. Crop Production Report Thurs. morning.
Cattle: Yesterday Oct. Live Cattle closed 100 lower and Oct. Feeder Cattle 150 lower. Over night these market have gone from 100+ lower to moderately higher following the gyrations in equities. Support for Oct. Cattle is currently 115.25 and resistance 119.00. I prefer the short side on rallies.
Silver: Sept. Silver is currently 1.36 lower at 38.00. It seems to me that for the moment Silver has been "demonetized" and not being treated as a store of value (like gold) but as an industrial metal, while Gold has made new all time highs. For the moment support remains at 36.00 and resistance 41.00.
S&P's: S&P's are currently 10.00 higher at 1121.00. Over night ths market continues it's extreme volatility making a low of 1077.00 and a high of 1148.00 for a range of 71.00. Remember when a 20.00 range was an active day? Yesterday I liquidated long positions early in the session. I am on the sidelines.
Currencies: I remain on the sidelines watching as the Swiss continues to be a safe harbour against everything!
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