Financials: Dec. Bonds are currently 19 lower at 119'01, the 10 Yr. Notes 15 lower at 117'16, the 5 Yr. Notes 11 lower at 115'16 and the 2 Yr. Notes 4 lower at 108'14. We continue to hold the combination of short Bonds and short the Dec. Bond 116'00 put. Near term support for Dec. Bonds is currently the 118'12-118'20 level. If this area is penetrated the next level of support will be the 117'18 level.
Grains: Yesterday Beans were 3 cents lower, Corn 5 higher and Wheat 9 higher. Over night Beans were 15 higher, Corn 7 higher and Wheat 12 higher. Continued precipitation in growing areas has delayed harvest and has caused concern about available supplies. I am currently on the sidelines and will be looking at out of the money call spreads in Mar. Corn and Soybeans early next week.
Cattle: Yesterday Dec. cattle closed 30 higher at 87.37. The long Dec./short Apr. spread gained 10 points closing at 220 premium the Apr. Over night the Dec. contract is 35 higher with the Dec. gaining 10 points on the Apr. If the spreads trades below 200 points today I will be looking to take profits.
Silver: Dec. Silver is currently 33 cents higher at 17.87. We remain long. However I recommend considering taking profits and buying out of the money call spreads 6-9 months out.
S&P's: Dec. S&P's are currently 3.00 higher at 1093.75. We stubbornly remain short futures and/or long out of the money puts as portfolio insurance and a speculative position.
Currencies: As of this writing the Dec. Euro is 6 higher at 1.5030, the Swiss 8 lower at .9948, the Yen 70 lower at 1.0887 and the Pound 228 lower at 1.6390. We remain long out of the money puts in the Yen and long out of the money put spreads in the Pound. The Dec. Dollar Index is currently 18 higher at 75.420