Financials: Bonds are currently 11 lower at 116'04, the 10 Yr. Notes 8 lower at 115'24, the 5 Yr. Notes 4 lower at 114'18 and the 2 Yr. Notes 1 lower at 108'04. Dec. Eurodollars are unchanged at 99.250. We remain short the Dec. Eurodollars which is currently at a loss. I continue to look at Sept. Bonds as a trading market between 115'20 and 117'04.
Grains: Yesterday Beans were 3 cents higher to 11 lower with old crop contracts gaining on new crop (Nov.) contracts. Corn was about 2 cents lower and Wheat 4 lower. Over night Beans were 20-25 cents higher, Corn 5 higher and Wheat 6 higher. Yesterday my recommended sell stop for remaining long positions in Dec. Corn was penetrated when the market traded below the 324'0 level. I will once again be a buyer if the market trades below the 520'0 level. At current prices I am a bit friendly long term for Corn and am looking at the Dec. 360 call as a means to participate from the long side. I will also be looking to the long side of Nov. Beans below 900'0 if the market allows.
Cattle: Yesterday Live Cattle closed sharply lower with the Aug. contract closing 97 lower at 83.95 and the Oct. 132 lower at 89.25. If you remain long the Aug. contract continue to use a protective sell stop at 83.60 (yesterday's low was 83.80). If you remain long the Oct. contract continue to use a sell stop at 88.75. The market is currently about 50 higher.
Silver: Sept. Silver is currently 18 cents higher at 13.44. I remain cautiously bullish and recommend the long side of the market.
S&P's: Sept. S&P's are currently 10.00 higher at 985.00. I feel the market is currently trading at resistance and prefer the short side of the market for a short term trade at present levels with a $500-$700 risk. Near term support is currently 965.00.
Currencies: As of this writing the Sept. Euro is 53 higher at 1.4061, the Swiss 4 higher at 91.86, the Yen 68 lower at 1.0460 and the Pound 138 higher at 1.6494. I continue to recommend being long out of the money puts and/or put spreads in the Yen. My downside objective for the yen for the near term is the 1.0300 level. I still like the short side of the Pound on a rally above the 1.6600 level I the market allows. For those of you who like spreads I suspect that the Yen will lose in value against the Pound. The Sept. Dollar Index is currently 32 lower at 79.46. Support for the Dollar Index remains in the 78.00 area.