Financials: Bonds are currently 10 higher at 117'05, the 10 Yr. Notes 9 higher at 116'14, the 5 Yr. Notes 6 higher at 115'02 and the 2 Yr. Notes unchanged at 108'09. Dec. Eurodollars are 2 higher at 99.41. We stubbornly remain short the Dec. Eurodollar and will make a decision next week on whether to stay with this position. It is currently at a $1200 loss. As for Bonds, I continue to like the short side of this market on rallies for short term trades. Near term support remains at 115'20 and near term resistance at 118'04. This mornings Retail Sales Report showed a decline of 0.1% versus pre-report estimates of +0.8%. Weekly Jobless Claims were up 4,000 versus estimates of down 5,000. The immediate reaction in Bonds was a break to the 115'30 level followed by a rally to new highs for the session at 117'07.5.
Grains: Yesterday Nov. Beans were 5 cents higher, Dec. Corn 5 higher and Dec. Wheat 5 higher. Over night Beans were 17 higher, Corn 7 higher and Wheat 4 higher. Yesterday Corn opened 8 lower and Beans 20 lower following the release of the Crop Report only to rally off the lows and close higher for the day. We remain long Dec. Corn futures and will raise our protective sell stop to the 322'0 level. If the market trades above 346'0 either take profits or raise your sell stop to the 326'0 level. We also remain long out of the money Dec. Corn calls and/or call spreads. If you are long Nov. Beans, keep in mind that the market has entered the 1060'0 to 1080'0 resistance level. One other thing to keep in mind: Sugar is on a 28 year high, will this effect demand for corn to be used for Corn Fructose? To be honest I do not know all the fundamental information for this, just something to think about.
Cattle: Yesterday, Live Cattle closed 50 to 112 higher with the active Oct. contract closing at 88.35. Once again this market is showing some support. However, I am going to remain on the sidelines at the moment.
Silver: Sept. Silver is currently 33 cents higher at 14.92. Yesterday the market gave a slight opportunity to reinstate long positions in the 13.80-14.20 area as the market made an early morning low of 14.13. The market is currently trading at the level where we took partial profits last week. I am not inclined to be a buyer at current levels if you missed the opportunity Tues. night/Monday morning. Resistance is currently the 15.10 area.
S&P's: Sept. S&P's are currently 6.25 higher at 1008.25. Near term support is currently 992.00 and near term resistance 1015.00. I remain on the sidelines.
Currencies: As of this writing the Sept. Euro is 95 higher at 1.4309, the Swiss 53 higher at .9342, the Yen 49 higher at 1.0448 and the Pound 91 higher at 1.6608. My recommended buy stop for remaining short positions in the Pound at 1.6560 has been penetrated which puts us on the sidelines. We remain long out of the money puts and/or put spreads in the Yen. The Sept. dollar Index is currently 47 lower at 78.430. Support for the Index remains in the 78.000 area.