Financials: Dec. Bonds are currently 4 higher at 121'06. Yesterday we were able to cover our short Jan. Bond 115'00 put at 18 points. This morning I recommend selling the Mar. Bond 115'00 put at 1'03 or better leaving us with the combination of short Dec. Bonds and short the Mar. Bond 115'00 put. At the end of the month Mar. Bonds will become the volume leader and I recommend rolling your Dec. position into Mar. sometime in the next 10 days. Technically the Bonds are currently in resistance.
Grains: Yesterday Beans were 19 higher, Corn fractionally lower and Wheat 12 higher. Over night Beans were 16 higher, Corn 3 higher and Wheat 3 higher. A weak Dollar is fueling the current rally. At the moment we are on the sidelines. However, for your consideration, I recommend the following combination. Sell the Mar. Beans 960'0 put and sell the Mar. Beans 1150'0 call. You should collect about 62'0 for the combination. As long as Mar. Beans stay above 900'0 and below 12100 there should be some profit potential. Ideally if Mar. Beans fall between the strike prices at expiration you will collect the full value of the premium.
Cattle: Yesterday Dec. Cattle closed 50 higher at 84.07. The long Dec. /short Apr. spread has gained 75 points over the last three sessions closing at 397 premium the Apr. We continue to hold this spread. We also remain outright long Dec. Cattle from below the 83.80 level. We are currently using a 300 point protective sell stop for this position. If Dec. Cattle should trade above the 85.10 level, either take profits or raise your sell stop to the 82.25 level.
Silver: Dec. Silver is currently 34 cents higher at 18.73. We continue to hold out of the money call spreads in the July contract. The market looks poised to close above the 18.40 level, which could be a technical breakout.
S&P's: Dec. S&P's are currently 2.00 lower at 1105.50. I remain on the sidelines.
Currencies: As of this writing the Dec. Euro is 85 higher at 1.4938, the Swiss 61 higher at .9890, the Yen 18 higher at 1.1219 and the Pound 10 lower at 1.6783. We remain long out of the money puts and or put spreads in the Yen, the Pound and the Euro. The Dec. Dollar Index is currently 36 lower at 75.10. I feel the Index will find support in the in the 74.40 area.