Financials: Sept. Bonds are currently 12 lower at 120'13, the 10 Yr. Notes 10 lower at 117'22, the 5 Yr. Notes 5 lower at 115'27 and the 2 Yr. Notes 1 lower at 108'19. We remain short the Bonds with a protective buy stop at 121'04. If the Bonds are too volatile for your trading objectives consider a position in either the 10 Yr. or 5 Yr. Notes. This morning's weekly Jobless Claims showed a decline in unemployment claims of 10,000 versus an estimate of 11,000. Second quarter GDP was down 1% versus expectations of down 1.5%. This showed push these financial instruments to lower levels. My near term objective for the Bonds is just below the 118'00 level. Longer term my objective remains at 116'00.
Grains: Yesterday Nov. Beans were 2 lower, Dec. Corn fractionally lower and Dec. Wheat 7 higher. Over night Beans were 7 cents higher, Corn 2 higher and Wheat 1 higher. We remain on the sidelines in Nov. Beans. We remain long out of the money calls and/or call spreads in Dec. Corn. Over the next few weeks weather and the value of the Dollar will be key factors in the direction of the Grains. We presently know that overseas demand is good, but will demand maintain if the dollar starts to show some strength?
Cattle: Yesterday Oct. Live Cattle closed 137 lower at 87.37. We remain on the sidelines at present levels and view the market as a trading affair between 86.00 and 91.50.
Silver: Dec. Silver is currently 3 cents higher at 14.32. If you remain long the Sept. contract roll into the Dec. this week to avoid the threat of delivery. If you are only long Silver for a short term trade, take profits. I will look to be adding to current long positions on a one dollar to one and a half dollar break from current levels if the market allows.
S&P's: Sept. S&P's are currently 1.00 higher at 1027.75. I remain on the sidelines. Treat as a trading market between 1014.00 and 1038.00
Currencies: As of this writing the Sept. Euro is 11 higher at 1.4252, the Swiss 2 lower at .9357, the Yen 36 higher at 1.0658 and the Pound 42 lower at 1.6195. I continue to recommend being long out of the money puts and/or put spreads in both the Dec. Yen and the Dec. Pound. The Sept. Dollar Index is 11 lower at 78.610.