Financials: Bonds are currently unchanged at 122'22. Over night the market traded at the 123'16 resistance level (the high was 123'17) around 3:45am. To be honest I missed the trade, however, if you went short at this level, either take the short term profit or use a protective buy stop at 124'02. I am still interested in going short at resistance. I am also interested in putting on the long 10 Yr. Note/short Bond spread at 2'28 premium the Bonds. We remain short the Dec. Eurodollar from the 99.210 level. This market is currently at 99.110, you might consider taking profits or using a close stop. The recent low over the last 6 weeks is the 99.070 area.
Grains: Yesterday Beans were 1 cent lower, Corn 3 higher and Wheat 1 lower. Over night Beans were 1 lower, Corn fractionally higher and Wheat fractionally lower. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. July Beans are once again below the 940'0 level (currently 938'6) and I am leaning to the long side of the market with a protective sell stop at 924'0.
Cattle: Yesterday Live and Feeder Cattle were moderately higher. We remain short Aug. Cattle. Either take profits on this morning's lower opening or lower your buy stop to the 92.10 level. Producers who have a combination of long puts and short out of the money calls should consider the following: If your short call strike price is trading below 15 points, cover the position. If your original out of the money put position is now more than 100 points in the money roll your position into a lower strike price.
Silver: July Silver is currently 20 cents lower at 18.68. We are currently on the sidelines. I am once again interested in going long below the 18.40 level.
S&P's: Jun. S&P's are currently 4.00 lower at 1114.75. Support is currently 1105.00 and resistance 1131.00. I am on the sidelines at this time.
Currencies: As of this writing the Jun. Euro is 88 higher at 1.2295, the Swiss 19 lower at .8701, the Yen 52 higher at 1.0894 and the Pound 14 higher at 1.4336. Yesterday we tried the long side of the Euro from below the 1.2378 level. Needless to say this did not work out very well given the overnight low of 1.2140. That being said I still feel this market is oversold. I am once again going to try and sell the Jun. Euro 1.23/1.25 put spread at 130 points premium the 1.25 put (currently at 112). This positrion has both a limited profit and loss potential, limited to the option premium. The Dollar Index is currently 38 lower at 86.93. We are approaching long term resistance in the 88.00-90.00 levels for this market.