Financials: Bonds are currently 1'10 lower at 119'29, the 10 Yr. Notes 24 lower, the 5 Yr. Notes 13 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are 3 lower at 99.230. If you went short at yesterday's resistance level in the Sept. Bonds of 120'24 I recommend taking the short term profit. As mentioned yesterday I am looking to treat the Bonds as a trading affair between 117'28 and 120'24. We remain short the Dec. Eurodollars which are currently at a loss (the original recommendation was to go short above the 98.920 level).
Grains: Yesterday Beans were 3-49 cents lower with new crop contracts gaining dramatically on old crop contracts reversing a month's long trend of July and Aug. gaining on November. Corn was a penny lower and Wheat 5 higher. Over night Nov. Beans were 13 cents higher, Corn 4 higher and Wheat 5 higher. We still remain on the sidelines. My only recommendation is sell out of the money puts in Nov. Beans with a strike price below the 800'0 level and risking about $600. I would only execute this trade on another sharp break in the Beans.
Cattle: Yesterday Live Cattle were 67-87 lower with the Aug. closing at 83.35 and Oct. closing at 88.32. Those of you who went long above the 84.45 level on Aug. Cattle should have been stopped out per my recommendation of risking 125 points from entry level. I am now on the sidelines and disappointed in the current action. I believe that the Cattle Industry has done a pretty good job over the last year of trimming the herd to be more in line with supply/demand fundamentals. That being said, we can't stand in front of the freight train of the overall economy.
Silver: July Silver is currently 3 cents higher at 12.87. Yesterday we were stopped out of a recent long position when the 12.92 level was penetrated. I am currently on the sidelines.
S&P's: Sept. S&P's are currently 7.50 higher at 881.25. Yesterday we were stopped out of a recent long position when the 867.00 level was broken. To be honest, I still prefer the long side of this market on breaks for short term trades. Treat as a trading market between 872.00 and 893.00 for the near term.
Currencies: As of this writing the Sept. Euro is 137 higher at 1.3987, the Swiss 83 higher, the Yen 69 lower and the Pound 220 higher at 1.6245. If you remain short the Pound, either take profits or continue to use a protective buy stop at 1.6290. The Sept. Dollar Index is 72 lower at 80.285.