Financials: Sept. Bonds are currently 2 lower at 139'18 and the 10 Yr. Note 4 lower at 130'21. The yield on the 10 Yr. Note actually traded just below the 2.0% level (1.97% to be exact) yesterday when the futures traded as high as 131'20 during yesterday's session. Over night the market came close to repeating with a high of 131'065. These markets look very attractive for a short sale but I am going to refrain at present and think in terms of out of the money puts and/or put spreads for either Oct. or Dec.
Grains: Yesterday Sept. Beans closed 4 cents lower, Sept. Corn 12 lower and Sept. Wheat 19 lower. Over night Beans were 2 higher, Corn 3 higher and Wheat 2 higher, rallying from lower prices as equities recovered from earlier lows. We remain long Dec. call spreads. If you are still in Sept. calls keep in mind that expiration is in one week. On Monday I will begin quoting Nov. Beans, Dec. Corn and Dec. Wheat.
Cattle: Yesterday Oct. Live Cattle closed 200 lower at 115.40 and Oct. Feeder Cattle more than 250 lower at 133.725. If you remain short Oct. LC either take profits or lower your buy stop to the 116.80 level. If you remain short Oct. FC either take profits of lower your buy stop to the 135.30 level. There is a monthly Cattle on Feed Report this afternoon, the current average estimates are as follows: On feed 108% of a year ago. Placements 117% of a year ago. Marketed 96% of a year ago. I believe the placement number will reflect cattle being placed in feed yards at lower than usual weights because of the lack of good pasture in many drought stricken areas.
Silver: Sept. Silver is currently 1.80 higher at 42.49, trading well above recent resistance in the 41.00-42.00 area. We continue to hold a small long position in Sept. Silver. Gold is on new high ground, currently at 1864.00.
S&P's: Sept. S&P's are currently 20.00 lower at 1123.00. To state the obvious, the trend remains down and highly volatile. Yesterday we tried buying breaks only to take losses. I am on the sidelines for the day. Near term support is the overnight low of 1117.50. Longer term, support is the 1080.00 area. Resistance is currently the 1145.00-1153.00 area.
Currencies: As of this writing the Sept. Euro is 84 higher at 1.4404, the Swiss 116 higher at 1.2752, the Yen 27 higher at 1.3100 and the Pound 61 higher at 1.6559. I remain on the sidelines.
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