Financials: Dec. Bonds are currently 1 lower at 142'03 and the 10 Yr. Notes 3 lower at 130'13. Once again the Bonds gave the opportunity to go short in the 142'26 area (the overnight high was 143'01). As I have mentioned over the last week or so I am presently only looking for short term trades. If you went short in the 142'26 area, either take profits or use a protective buy stop in the 142'14 area.
Grains: Yesterday Jan. beans closed 12'4 lower at 1187'6, Mar. Corn 2'6 lower at 652'0 and Mar. Wheat 10'0 lower at 637'6. Over night Beans were 3 lower, Corn 5 lower and Wheat 3 lower. With the Dollar strengthening over the last few days, Grains have backed off as expected. We are currently on the sidelines, but will start looking at the long side of Mar. corn on breaks below the 637'0 level if the market allows. Support for Jan. Beans is currently 1165'0 and resistance 1204'0.
Cattle: Yesterday Feb. LC closed 25 higher at 124.30 and Jan. FC 50 higher at 148.87. My bias still remains to the short side of the market although we currently have no positions. I will be interested in the short side of Feb. LC on rallies above the 126.00 level if the market allows.
Silver: Dec. Silver is currently 94 cents lower at 32.88. The market has retreated over the last two sessions as the Dollar has strengthened. As I have mentioned over the last few weeks, this is a market I am hesitant to get over committed to the long side. That being said, I still remain long term friendly, but only recommend being long out of the money calls and/or call spreads for March 2012 expiration, which carries only limited risk.
S&P's: Dec. S&P's are currently 2.50 lower at 1228.50. This market is still sensitive to the over all global picture, particularly European debt. The market is now looking France as the next victim so to speak. Interest rates in French 5 and 10 Year Notes have risen over the last couple of sessions along with Italian Notes now yielding about 7.0%. Technically the 1243.00 level for dec. S&P's has now been handily pentrated. The next important level of support is now 1219.00. If this level fails to hold the market cout test the 1200.00 level.
Resistance is now the 1237.00-1243.00 areas. My bias is toward the short side of the market.
Currencies: As of this writing the Dec. Euro is 10 lower at 1.3501, the Swiss 10 lower at 1.0906, the Yen 12 lower at 1.2993 and the Pound 7 lower at 1.5762. We remain short the Yen futures with a risl of about 150 points (the 1.3150 level). We remain long out of the money puts on Dec. Yen. I am also recommending out of the money puts on either the Jan. or March Euro (futures are currently a bit too volatile for me).
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