Financials: Dec. Bonds are currently 3 lower at 143'15 and the 10 Yr. Notes 4 lower at 130'00. This mornings weekly Jobless Claims report showed an increase in claims of 9,000 versus expectations of an increase of 19,000. Also fo note the ECB as expected did not lower or change their rates. For the moment I am looking to treat the Bonds as a trading affair between 141'00 and 145'00 preferring the short side of the market on rallies to the 145'00 level.

Grains: Yesterday Nov. Beans closed 3'6 higher, Dec. Corn 17'6 higher and Dec. Wheat 21'2 higher. Over night Beans were 11 higher, Corn 4 higher and Wheat 7 higher. Yesterday the market was helped when a private agri-economic forecaster predicted that average yield per acre in Corn would 149.5 bushels per acre, down from an earlier forecast of 151.0. We remain long out of the money calls and/or call spreads in Dec. Corn.

Cattle: Yesterday Dec. Live Cattle closed 110 higher at 122.65 and Nov. Feeder Cattle 85 higher at 141.75. I am still interested in the short side of dec. Cattle above the 122.00 with protective buy stops at 124.35. An alternative to being short futures could be buying out of the money puts and/or put spreads or selling out of the money calls and/or call spreads.

Silver: Dec. Silver is currently 44 cents higher at 30.81. We continue to hold a small long position. If you are long term bullish consider out of the money calls and/or call spreads for March 2012 expiration.

S&P's: Dec. S&P's are currently 3.00 higher at 1138.50. If you remain long either take profits or raise your sell stop to the 1128.00 level. Personally I feel that the market is a sale at current levels. I feel that the market has absorbed all the news of European bank recapitalization. That being said I want to be flat going into tomorrow's monthly Employment Report.

Currencies: As of this writing the Dec. Euro is currently 25 lower at 1.3325, the Swiss 37 lower at 1.0804, the Yen 8 higher at 1.3057 and the Pound 134 lower at 1.5325. I am on the sidelines.

Regards,

Marc
888.908.4310 | 312.264.4310
mnemenoff@pricegroup.com