Financials: Bonds are currently 14 higher at 119'18, the 10 Yr. Notes 5 higher at 118'03, the 5 Yr. Notes 4 higher at 116'02 and the 2 Yr. Notes 2 higher at 108'21. Yesterday the market rallied 1'12 off of its low of 117'27 on a flight to quality as commodity and equity prices fell. If you continue to hold the combination of short Bonds and short the Dec. Bond 116'00 put use an open order to cover the short 116'00 put at 15 points (currently 30 points). If you are able to cover this position at the recommended price, I will be looking to sell the Jan. 115'00 put against current short Dec. futures on any sharp breaks.
Grains: Yesterday Beans were 13 cents lower, Corn 7 lower and Wheat 23 lower. Over night Beans were 11 lower, Corn 5 lower and Wheat 9 lower. Strength in Dollar and harvest progress continues to put pressure on the grains. We are near a 50% break from the recent lows to the recent highs in both Dec. Corn and Nov. Beans. I recommend trying the long side of Dec. Corn in the 357'0 area and Jan. Beans in the 960'0 with an initial risk of 15 cents in Corn and 25 cents in Beans.
Cattle: Yesterday Dec. Cattle closed 5 lower at 87.10. The long Dec. /short Apr. spread closed at 232 premium the Apr. after once again giving a profit taking opportunity below the 190 level mid session. I will be looking to reinstate this spread at 280 premium the Apr. if the market allows.
Silver: Dec. Silver is currently 10 cents lower at 16.46. If you have taken profits on futures positions, I will once again be looking to go long below the 15.40 level if the market allows. We are currently long out of the money call spreads in the July contract.
S&P's: Dec. S&P's are currently 4.50 lower at 1056.00. We remain short futures and/or long out of the money puts. Near term support is currently the 1045 area and near term resistance 1071.00
Currencies: As of this writing the Dec. Euro is 13 lower at 1.4793, the Swiss unchanged at .9793, the Yen 70 higher at 1.0968 and the Pound 54 lower at 1.6328. We remain long out of the money put spreads in the Pound and long out of the money puts in the Yen. The Dec. Dollar Index is currently 10 higher at 76.380. Near term resistance in the Dollar Index is 77.00.