Financials: Bonds are currently 13 higher at 120'29, however 9 lower since this time yesterday. This morning's weekly unemployment report was about unchanged at 505K. Yesterday we were able to sell the Mar. 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. Keep in mind there are 7 trading days until you should roll your Dec. Bonds into the Mar. contract. On Nov. 30th, the Mar. contract will become the volume leader.
Grains: Yesterday Beans were 2 lower, Corn 4 lower and Wheat 8 lower. Over night Beans were 7 lower, Corn 5 lower and Wheat 12 lower. The market is now quite a bit below yesterday's intraday highs as the Dollar has rallied a bit and harvest pressure has come into play. Yesterday I recommended selling a combination of out of the money puts and calls in Mar. Beans. I recommend choosing strike prices about one dollar out of the money on each leg of this combination.
Cattle: Yesterday Dec. Cattle closed 100 lower at 83.07. The long Dec. / short Apr. spread lost about 70 points closing at 480 premium the Apr. We continue to hold this spread. We also remain long Dec. Cattle from below the 83.80 level with a protective sell stop 300 points below our entry level.
Silver: Dec. Silver is currently 3 cents higher at 18.45. We continue to hold out of the money call spreads in the July contract. A consecutive close above 18.40 will be a positive technical signal.
S&P's: Dec. S&P's are currently 8.25 lower at 1100.25. I remain on the sidelines. Near term support is currently 1086.00 and resistance 1111.00.
Currencies: As of this writing the Dec. Euro is 70 lower at 1.4868, the Swiss 48 lower at .9840, the Yen 84 higher at 1.1262 and the Pound 90 lower at 1.6625. Against conventional wisdom, I continue to recommend being long puts and or put spreads in the currencies, preferably the Jan. or Mar. contracts. The Dec. Dollar Index is 21 higher at 75.47. I like the long side of this market on breaks. Support for the Dollar Index is currently 74.40 and resistance 76.50.