Financials: Bonds are currently unchanged at 115’12. Last week we took profits on the combination of short Mar. Bonds and short the Mar. Bond 115’00 put. For the moment my downside objective for this market has been met and I am currently on the sidelines. Near term support is currently 114’28 and near term resistance 117’06. Treat as a trading market between support and resistance.
Grains: On Thursday Beans were up 3 cents, Corn fractionally higher and Wheat 3 lower. Over night Beans were 14 cents higher, Corn 9 higher and Wheat 15 higher. If you remain long Mar. Beans, either take profits or raise your protective sell stop to the 1041’0 level. My near term upside objective for Mar. beans is currently the 1070’0-1080’0 area. A weak Dollar this morning has added some upside momentum to the Grains this morning.
Cattle: On Thursday Feb. Cattle closed 112 higher at 86.17. The long Feb./ short Apr. spread gained 27 points closing at 362 premium the Apr. We continue to hold this spread.
Silver: Mar. Silver is currently 56 cents higher at 17.40. We remain long both Futures and out of the money call spreads. Renewed rumors of terrorist activity has added some upside momentum to the metals.
S&P's: Mar. S&P’s are currently 12.00 higher at 1122.75. We continue to remain long out of the money puts as either portfolio insurance or a speculative position.
Currencies: As of this writing the Mar. Euro is trading 93 higher at 1.4427, the Swiss 48 higher at .9717, the Yen 62 higher at 1.0802 and the Pound 20 higher at 1.6166. My only remaining recommended position is being long out of the money put spreads in the Pound. As I have observed over my many years as a student of the market, Jan. often sets the trend for the year in regards to the Dollar. I am going to remain on the sidelines in the Currencies and Dollar Index for the next few days and see what develops. If the Pound trades below 1.5900 (last week’s low was 1.5830) take profits on put positions.