S&P's: June S&P’s are currently 9.50 lower at 907.75. If you have been watching the market this morning you will have noticed that it was much higher just 90 minutes ago (9:00am central time). Yesterday I was stopped out of a recent short position from the 888.00 level when the market rallied through the 912.00 level. I believe that the results of the “stress tests” indicate that the market is not yet ready to trade at much higher levels. I still like the short side of the market on rallies in spite of recent losses.

Financials: Bonds are currently 28 lower at 121’15, the 10 Yr. Notes 18 lower, the 5 Yr. Notes 11 lower and the 2 Yr. Notes 3 lower. The Dec. Eurodollars are unchanged at 98.875. We remain short the 2 Yr. Notes and/or the 5 Yr. Notes with a downside objective of 108’12 for the 2 Yr. Notes. We also remain short the Dec. Eurodollar. Earlier in the week I recommended being either short out of the money puts or long out of the money calls in June Bonds.

Grains: This morning July Beans are currently 8 cents higher at 1126’0, July Corn 7 higher at 415’0 and July Wheat 14 higher at 573’0. If you remain long July Wheat either take profits or raise your protective sell stop to the 561’0 level. We remain long out of the money calls and/or call spreads in July Corn.

Cattle: As of this writing June Cattle are 40 lower at 81.47. We remain long with a protective sell stop at 80.75. I must admit that the action is not very encouraging at the moment.

Silver: July Silver is currently about unchanged at 13.72. The market has retreated from earlier levels above the 14.00 level. As mentioned yesterday I would like to see a close above 14.05 to indicate that this market has the momentum to work hire.

Currencies: As of this writing the June Euro is 45 higher at 1.3392, the Swiss 13 higher, the Yen 71 lower and the Pound 82 lower at 1.5013. We have re-entered the short side of the British Pound in the 1.5100 area. The June Dollar Index is currently 1 higher at 83.950. I am looking to be a buyer if this market trades below the 83.30 level