Financials: Dec. Bonds are currently unchanged at 120'26. We continue to hold the combination of short Dec. Bonds and short the Mar. Bond 115'00 put. Next week I will roll the short Dec. Bond futures into the Mar. contract.
Grains: Yesterday Beans were 12 cents higher, Corn 3 lower and Wheat 3 lower. Over night Beans were 1 lower, Corn 3 lower and Wheat 5 lower. Dec. Grain options expire today. We continue to hold a combination of out of the money short puts and short calls (with strike prices about $1.00 out of the money) in Mar. Beans. I am on the sidelines in Wheat and Corn.
Cattle: Yesterday Dec. Cattle closed 60 higher at 83.67. The long Dec. /short Apr. spread gained back 60 points closing at 420 premium the Apr. We continue to hold both this spread and a net long position in Dec. Cattle. Continue to use a protective sell stop in Dec. Cattle 300 points below your entry level.
Silver: Dec. Silver is currently 23 cents lower at 18.20. We remain long out of the money call spreads in the July contract.
S&P's: Dec. S&P's are currently 6.75 lower at 1087.50. Near term support remains at 1086.00 and near term resistance is now the 1106.00 level. I remain on the sidelines.
Currencies: As of this writing the Dec. Euro is 82 lower at 1.4835, the Swiss 60 lower 98.10, the Yen 13 lower 1.1224 and the Pound 167 lower at 1.6477. I continue to favor the short side of the currencies and recommend being long out of the money puts and/or put spreads. The Dec. Dollar Index is currently 44 higher at 75.81. Support in the Dollar Index is currently 74.80 and resistance remains at 76.50 for the near term.