Financials: Bonds are currently 20 lower at 116'19, the 10 Yr. Notes 13 lower, the 5 Yr. Notes 9 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are 1 higher at 99.220. We remain short the Dec. Eurodollars. Sept. Bonds are currently in support just below the 116'24 level. I like the long side of the market at present levels for a short term trade. Near term resistance is currently 117'24. If you chose to go long, I would use a protective sell stop 5 points below Tuesday's low of 116'11 at 116'06.
Grains: Yesterday Beans were 14 to 44 cents lower with old crop once again dramatically losing to new crop contracts. Dec. Corn was 12 cents lower and Dec. Wheat 2 lower. Over night Beans were 10 cents higher, Corn 2 higher and Wheat 6 higher. If you went long Dec. Wheat over the last few days I recommend using a protective sell stop at 530'0. If the market trades above the 576'0 level either take profits or raise your sell to the 552'0 level. I still like the idea of going long Dec. Corn below the 320'0 level if the market allows.
Cattle: Yesterday Live Cattle was unchanged to 115 higher. Aug. Cattle settled 67 higher at 85.60 after momentarily trading above resistance of 86.00. The main feature of the day was the long Oct. / short Dec. spread which moved in excess of 100 points in favor the Oct. I remain on the sidelines.
Silver: Sept. Silver is currently 12 cents higher at 13.35. I remain on the sidelines.
S&P's: Sept. S&P's are currently 2.00 lower at 933.50. As mentioned yesterday I like the short side of this market on rallies above 930.00. Major resistance is the highs made in June in the 950.00 to 954.00 area. I am not looking for short term trades at the moment but willing to position for a few days at the least. Near term support is the 906.00 area.
Currencies: As of this writing the Sept. Euro is 37 lower at 1.4111, the Swiss 42 lower, the Yen 31 lower and the Pound 115 lower at 1.6337. I still want to be long out of the money puts and/or put spreads in the Yen. I also want to be a seller in the Pound on rallies above the 1.6600 level if the market allows