Financials: Bonds are currently 1'16 lower at 121'27. This morning's Employment Report showed an increase in non-farm payrolls of 290,000 versus a pre-report estimate of 180-200,000. Yesterday the market rallied dramatically because of the break in equities and the social unrest in Greece. European sovereign debt is still the dominant factor in the global flight to quality. Needless to say, yesterday's rally was an aberation as fear drove the market up above the 124'00 level. I will remain on the sidelines over next couple of sessions for the simple reason that this market is too volatile at present for me too make a rational trading decision.
Grains: Yesterday Beans were 24 cents lower, Corn about 2 lower and Wheat 3 lower. Over night Beans were fractionally higher, Corn 1 higher and Wheat 3 lower. Yesterday's strength in the Dollar and the Global equity sell off have had it's effects in the Grains. To be honest I am a bit surprised by the loss in Beans and the underlying strength in the Corn. I feel that the next few crop reports will show that more Corn is being planted and less Beans than a year ago. Over the last couple of weeks we have had only option positions, long the Nov. Bean out of the money call spreads and short the Sept. Corn 340'0/420'0 strangle. July Beans are approaching support in the 940'0 area and I will look to be a buyer below 940'0 if the market allows.
Cattle: Yesterday Live and Feeder Cattle closed moderately to sharply lower depending on the contract month in response to the breaking equities markets. If you remain short Jun. Cattle lower your buy stop to the 97.05 level. If the market trades below the 95.30 level either take profits or lower your stop to the 96.60 level. If you are short the Aug. contract lower your buy stop to the 95.70 level.
Silver: July Silver is currently 15 cents higher at 17.66. We contniue to hold a small long position. If you are watching the Gold/ Silver ratio spread (see yesterday's report) it is currently 67:1, about what it was yesterday.
S&P's: Jun. S&P's are currently unchanged at 1122.50. Yesterday I recommended covering all short positions and standing aside. Given yesterday's volatility I am going to stand aside the next few sessions.
Currencies: As of this writing the Jun. Euo is trading 90 higher at 1.2693, the Swiss unchanged at .8992, the Yen 343 lower at 1.0906 and the Pound 100 lower at 1.4681. Keep in mind that the Yen closed more than 700 points higher yesterday at 1.1249 and the Euro closed nearly 225 points lower at 1.2603. I am out of all futures and options positions at this time. I will be watching the Euro closely, as long term, a 50% set back from the all time low of about .8400 to the all time high of about 1.6000 will put the market at 1.2200. As I have mentioned in the last few weeks I like the short side of the Yen on strong rallies and will look to be a buyer of puts and/or put spreads if the futures once again trade above the 1.1000 level.