Financials: Mar. Bonds are currently 28 higher at 120’00. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115’00 put. Continue to use a “good till cancel” order to cover the Mar. Bond 115’00 put at 19 points (currently offered at 54 points).
Grains: Yesterday Beans were 10 cents higher at 1053’0 (Jan.), Corn 4 lower and Wheat 10 lower. Over night Beans were 6 higher, Corn 2 higher and Wheat fractionally lower. Our recommended combination of short the Mar. Beans 1160’0 call and short the Mar. Beans 960’0 put closed at 37’3 yesterday. I recommend covering this position below the 35’0 cent level. Jan. Beans should start showing resistance above the 1072’0 level. Also, I will be looking to the long side of Mar. Corn on a break below the 378’0 level.
Cattle: Yesterday Feb. Cattle closed 10 higher at 83.30. We remain spread long Feb. /short Apr which is currently trading at 277 points premium the Apr., with the Feb. contract gaining 20 points on the Apr. this morning.
Silver: Mar. Silver is currently 40 cents lower at 17.96. This market traded as low as 17.77 overnight. As I have mentioned over the last few days I am looking to be a buyer in the 17.80 area. Near term support is currently 17.72 and near term resistance 18.62. We continue to hold out of the money call spreads in the July contract.
S&P's: Dec. S&P’s are currently 10.25 lower at 1093.50. A close below 1095.00 could generate a technical sell signal. Consider buying out of the money puts as portfolio insurance on the Mar. contract. Starting tomorrow I will be quoting the Mar. contract which currently has an 8.00 point premium to the Dec.
Currencies: As of this writing the Mar. Euro is 65 lower at 1.4750, the Swiss 43 lower at .9773, the Yen 141 higher at 1.1326 and the Pound 160 lower at 1.6269. We remain long out of the money puts in the currencies. I recommend taking advantage of this morning’s break in the Pound by “rolling” any long puts into lower strike prices. Consider the 160.00 put. The Mar. Dollar Index is currently 21 higher at 76.32. Yesterday we took profits on al long Dollar Index positions as both my objective and recommended protective sell stops were reached.