Financials: Sept. Bonds are currently 11 higher at 117'06, the 10 Yr. Notes 11 higher, the 5 Yr. Notes 10 higher and the 2 Yr. Notes 3 higher. Dec. Eurodollars are 4 higher at 99.215. We remain short the Dec. Eurodollars. Over the last few sessions we have seen the Bonds decline from the 120'24 level to yesterday's low of 116'11. As I have mentioned in the past, a strong stock market, weak dollar, higher energy and higher commodities tend to equate to a lower Bond market and higher metals in the current economy. To be honest I think the stock market is overdone on the upside and the Bonds overdone on the downside. I am looking to trade the Bonds from the long side for short term trades on breaks below the 116'24 level.
Grains: Yesterday Beans were 15 cents lower, Corn 8 cents lower and Wheat 5 higher. Over night beans were 15 lower, Corn 5 lower and Wheat 5 lower. I am looking to be a buyer in Dec. Corn below the 320'0 level. I still like the long side of Dec. Wheat on breaks.
Cattle: Yesterday Live Cattle closed slightly lower with the Aug. contract closing at 84.92. I remain on the sidelines.
Silver: Sept. Silver is currently 3 cents lower at 13.17. This market has made a recovery of about 50 cents from recent lows in the 12.60 level. I must admit that the market may be forming a bit of a near term bottom but I need a bit more of a technical confirmation before going a long again.
S&P's: Sept. S&P's are currently 2.00 lower at 925.00. The rally over the last 2 days has put the market back into resistance in the 930.00 area. I now prefer the short side of this market on rallies. Just to give you a bit of a recap of recent highs: On June 5th the high was 953.00, June 10th the high was 950.75 and on June 11th the high was 952.75. I need to see these highs taken out in order to get bullish at this time. Near term support is currently the 907.00 level.
Currencies: As of this writing the Sept. Euro is 5 lower at 1.4125, the Swiss 8 lower, the Yen 100 higher at 1.0703 and the Pound unchanged at 1.6424. I still like being long out of the money puts and/or put spreads in the Yen. I will also be a seller in the Pound above the 1.6600 level. The Sept. Dollar Index is currently 3 lower at 79.43.