Financials: Dec. Bonds are currently 8 lower at 138'05 and the 10 Yr. Note 2 higher at 128'07. I still feel that the overall near term trend is down and will be a seller on rallies to the 141'15 level. Near term support remain in the 138'00 level.
Grains: On Friday Nov. Beans closed 13 cents higher at 1270'0, Dec. Corn 1 higher at 640'0 and Dec. Wheat 4 higher at 622'6. Over night Beans were 13 lower, Corn 2 lower and Wheat 1 higher. Continue to treat Dec. Corn as a trading market between 615'0 and 655'0. With the Dollar stengthening this morning I expect the Grains to come under a bit of pressure. We remain long out of the money calls and/or call spreads in Dec. Corn.
Cattle: On Friday Dec. Live Cattle closed 35 higher at 123.20 and Nov. Feeder Cattle 97 higher at 144.425. We are once again short Dec. Live Cattle and for the moment will use a protective buy stop at 125.10. If this market should trade below the 121.90 level, lower your buy stop to your break even level.
Silver: Dec. Silver is currently 14 cents higher at 32.31. If you remain long term bullish consider going long out of the money calls and/or call spreads for March 2012 expiration.
S&P's: Dec. S&P's are currently 3.00 lower at 1216.25 after a volatile overnight trade which saw the market as high as 1230.75, a level not seen for some time. The market appears to have rallied due to some expected good earnings and the possibility that the G20 will come up with a magic bullet to help solve European debt problems. As for positions in this market, we were stopped out of recent short positions on Friday at 1216.00 (see my Report from 10/13/2011). Consider going short out of the money calls with a strike price of 1220 or higher.
Currencies: As of this writing the Dec. Euro is 85 lower at 1.3785, the Swiss 42 lower at 1.1167, the Yen 5 lower at 1.2966 and the Pound 38 lower at 1.5767. We remain short the Euro and long out of the money puts in Dec. Yen.. If you remain short the Euro either take the short term profit or use a protective buy stop at 1.3940.
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