Financials: Bonds are currently 3 lower at 116'05, the 10 Yr. Notes 4 lower, the 5 Yr. Notes 2 lower and the 2 Yr. Notes 1 lower. Dec. Eurodollars are 1 lower at 99.220. On Friday we tried the long side of the Bonds only to be stopped out of the market with a loss when the market traded below the 116'060 level. This puts me on the sidelines for the day. My bias which is to the long side of the market on breaks over the last few sessions admittedly needs some review. We remain short the Dec. Eurodollars which is currently at a loss.
Grains: On Friday Beans were 33 cents higher, Corn 6 higher and Wheat 8 higher. Over night Beans were about 10 cents higher, Corn 1 higher and Wheat 6 higher. I still like the long side of Dec. Corn on a break below the 320'0 level if the market allows. If you remain long Dec. Wheat raise your sell stop to the 540'0 level. If the market trades above the 577'0 level raise your sell stop to the 552'0 level or take profits.
Cattle: On Friday Live Cattle closed 40-77 higher with the Aug. contract closing 77 higher at 86.37. This was the highest close since Jan. 16th, finally giving a minor buy signal. I am willing to once again try the long side of the market on either the Aug. or Oct. contracts on a break of 100 points or more.
Silver: Sept. Silver is currently 26 cents higher at 13.66. I am currently on the sidelines. A close above the 13.80 level should generate a buy signal.
S&P's: Sept. S&P's are currently 6.00 higher at 943.00. Some positive quarterly earnings, higher metals and energy prices, a week dollar and lower Bond prices all have contributed to higher equity prices over the last few days. As I have mentioned over the last few sessions I have a bias to the short side of the market at current levels. I feel that the market will have a hard time penetrating the June highs of 954.00 and will continue to hold a short position. Near term support is now the 916.00 level.
Currencies: As of this writing the Sept. Euro is 90 higher at 1.4230, the Swiss 63 higher, the Yen 33 lower at 1.0582 and the Pound 128 higher at 1.6506. I am still recommending being long out of the money puts and/or put spreads in the Yen. I am also willing to once again go short the Pound above the 1.6600 level. The Sept. Dollar Index is 48 lower at 79.025.