Financials: Dec. Bonds are currently 13 lower at 119'12, the 10 Yr. Notes 7 lower, the 5 Yr. Notes 3 lower and the 2 Yr. Notes 1 lower. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00. I continue to recommend covering the short Dec. Bond 116'00 put at 15 points if the market allows (currently at 40 points). The Bonds are once again approaching near term support in the 118'12-118'20 level. If the 118'12 level is penetrated the next level of support will be the 117'18 level.
Grains: Yesterday Beans were 26 cents higher, Corn 13 higher and Wheat 25 cents higher. Over night Beans were about 8 cents lower, Corn 2 lower and Wheat 3 lower. I recommend taking profits on all long Dec. Corn call and/or call spread positions. The recent run up in prices appears to be due to the weak dollar and delayed harvest progress due to wet weather. This morning the Dollar is a bit stronger and it seems that although harvest may be delayed, a bumper crop is still expected. I will stay on the sidelines for the rest of the week.
Cattle: Yesterday Dec. Cattle closed 92 higher at 87.07. The long Dec./ short Apr. spread gained 12 points closing at 230 premium the Apr. If you remain in this spread take profits if the spread trades below the 200 point level.
Silver: Dec. Silver is currently 39 cents lower at 14.44. If you remain long I continue to recommend taking profits and going long an out of the money call spreads 6-9 months out. An example would be long the July $20 call and short the July $22 call.
S&P's: Dec. S&P's are currently 1.50 lower at 1076.50. Yesterday's late session break may have created a key reversal (a new recent inter day high and a close below the previous day's low. We remain short futures and/or long out of the money puts as both portfolio insurance and a speculative position.
Currencies: As of this writing the Dec. Euro is 35 lower at 1.4999, the Swiss 26 lower at .9931, the Yen 51 lower at 1.0937 and the Pound 62 lower at 1.6573. Yesterday we were stopped out of our recent short position in the Dec. Pound with a 250 point loss ($1562.50). We remain long out of the money puts in the Yen and out of the money put spreads in the Pound. For those of you who are watching the Yen, it is now at its lowest level since Sept. 24th. The Dec. Dollar Index is currently 33 higher at 75.440.