Financials: Sept. Bonds are currently 24 lower at 121'18. This morning's weekly employment report showed a decline in claims of 10K to 435K, about as expected. Near term support of 122'03 has been penetrated, turning the short term trend from neutral to down. With a slightly weaker Dollar and a recovering equities market I would tend to favor the short side of the market on rallies to the 123'00 area. Near term support is currently the 120'26 level, if this area is broken, longer term support will be the 119'00 area. The monthly Employment Report will be tomorrow morning.
Grains: Yesterday Beans were fractionally higher, Corn 5 lower and Wheat 8 lower. Over night Beans were 5 higher, Corn unchanged and Wheat 2 higher. I feel that July Corn is approaching long term support in the low 340's and I am willing to try the long side of the market with a protective sell stop below the 335'0 level. Users of corn (long hedgers) should continue to purchase Corn as needed for short term needs. We continue to hold out of the money call spreads in Nov. Beans and also remain short the Sept. Corn 340'0/420'0 strangle. The Sept. Corn strangle is currently trading around 18 cents. I will be looking for a profit taking opportunity below the 16'0 cent level.
Cattle: Yesterday Live Cattle closed 100+ higher and Feeder Cattle 50-115 higher on short covering and lower feed grain prices. We currenly do not have a speculative position, but willing to go long Aug. Cattle on a 200+ point break from current levels. Producers should continue to hold out of the money put positions as price insurance.
Silver: July Silver is currently 3 cents higher at 18.34. As mentioned yesterday I'm a bit concerned with the current price action and recommend using a protective sell stop in the 17.37 area against long positions. If the market trades as high as 18.80 either take profits or raise your sell stop to break even levels. Short term traders might even consider the short side of the market on rallies.
S&P's: June S&P's are currently 6.00 higher at 1102.75. We are currently on the sidelines, having missed yesterday's 2% rally. Near term support is now the 1079.00 area and resistance 1104.00. Treat as a trading market using a close stop.
Currencies: As of this writing the Jun. Euro is 4 higher at 1.2244, the Swiss 2 higher at .8657, the Yen 43 lower at 1.0806 and the Pound 21 lower at 1.4623. Yesterday we covered a recent short position in the Pound. With tomorrow's Monthly Employment Report pending, I am hesitant to enter the market until after it's release.