Financials: Bonds are currently 15 higher at 117'24, the 10 Yr. Notes 6 higher, the 5 Yr. Notes 2 higher and the 2 Yr. Notes fractionally higher. Dec. Eurodollars are 1 lower at 99.265. We remain short Dec. Eurodollars. I am still looking at the Bonds as a trading market between the 116'15 area and the 118'20 area preferring the long side of the market.
Grains: Yesterday Beans were 3 cents higher, Corn 3 lower and Wheat 12 lower. Over night Beans were 8 cents higher, Corn 8 higher and Wheat 4 higher. We were stopped out of recent long positions in Dec. Wheat when the 554'0 level was violated. Yesterday we were able to go long Dec. Corn below the 320'0 (the low was 314'6). If you went long either take the short term profit or use a protective sell stop at 313'0. If the market trades above 335'0, either take profits or raise your sell stop to the 322'0 level.
Cattle: Yesterday Live Cattle closed 37-132 lower with the Aug. contract closing 100 lower at 85.02. The Oct. contract closed 132 lower at 89.80. If you went long on yesterday's break use a sell stop 175 points below your entry level.
Silver: Sept. Silver is currently about unchanged at 13.70. I continue to remain on the sidelines. A close above 13.80 will generate a buy signal and I will be encouraged to be a buyer on breaks. Over night the high was 13.86 but the market has yet to be able to maintain these prices, which is why I need to see the market close above 13.80.
S&P's: Sept. S&P's are currently 3.00 higher at 953.00. I still prefer the short side of this market with a protective buy stop at 962.00. If the market should trade below the 933.00 level either take profits or lower your buy stop to 947.00. Near term support is currently 924.00.
Curre3ncies: As of this writing the Sept. Euro is 16 lower at 1.4212, the Swiss 63 lower, the Yen 101 lower at 1.0590 and the Pound 7 higher at 1.6469. I continue to recommend being long out of the money puts and/or put spreads in the Yen. I also want to be a short seller in the Pound above 1.6600. The Sept. Dollar Index is 21 higher at 79.070. For a little perspective, the year to date low is 78.375 and last years low was 70.805. I suspect the Dollar will find some near term support in the 78.00 area.