Financials: Mar. Bonds are currently 2 higher at 121'22. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115'00 put. Yesterday the market closed about 1'00 lower and has now established resistance in the 122'26 area. Near term support is currently 120'16. This Friday, Dec. 4th, we will have the Monthly Unemployment Report.
Grains: Yesterday Beans were 1 cent lower, Corn 3 lower and Wheat 4 lower. Over night Beans were 4 lower, Corn 1 lower and Wheat 1 lower. Yesterday's lower close came after the market traded higher most of the session before breaking to lower ground in the last hour of the session. The market has now established some near term resistance: Mar. Beans at 1075'0, Mar Corn at 422'0 and Mar. Wheat at 600'0. We continue to hold the combination of short out of the money puts and calls in Mar. Beans. The recommended position was short the Mar. Beans 960'0 put and short the Mar. Beans 1160'0 call for a total of 60'0 cents (currently at 50'0).
Cattle: Yesterday Dec. Cattle closed 65 lower at 82.55. We remain long from the 83.80 level and are currently using a protective sell stop at 80.80. We also remain spread long Dec./ short Apr. which closed at 510 premium the Apr. This spread is currently losing 200 points. I will make a decision by Friday whether to keep this position. Please note that Monday, Dec. 7th is first notice day for deliveries. I recommend rolling Dec. positions into Feb. on Friday to avoid a delivery situation.
Silver: Mar. Silver is currently 12 cents higher at 19.33. Yesterday the market gave the opportunity to roll the long side of out of the money call spreads into a higher strike price and take some money off the table. Example: If you were long the July 20.00 call and short the 22.00 call, we sold the 20.00 call and simultaneously bought the 21.00 call, leaving you with the 21.00/ 22.00 call spread. I am staying away from futures positions at this time as I feel this market is trading higher on momentum instead of supply/demand fundamentals and to be honest fear a corrective set back.
S&P's: Dec. S&P's are currently 1.00 higher at 1109.50. I am on the sidelines. My only recommendation is to consider buying out of the money puts as portfolio insurance.
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Currencies: As of this writing the Dec. Euro is 11 lower at 1.5083, the Swiss 4 lower at 1.0009, the Yen 67 lower at 1.1473 and the Pound 29 higher at 1.6668. I remain long out of the money puts in the currencies. The Dec. Dollar Index is currently 7 higher at 74.48. The 74.40 are in the Dollar Index continues to hold. Short term traders might consider going long with a protective sell stop just below yesterday's low of 74.210.