Grains: Yesterday Nov. Beans were 4'4 lower at 951'0, the Dec. Corn unchanged at 951'0 and the Dec. Wheat 1'4 lower at 485'6. Over night Beans were 9 higher, Corn fractionally higher and Wheat 1 lower. We remain long Nov. Beans with a protective sell stop at 913'0. If the market trades above the 973'0 level either take the short term profit or raise your sell stop to the 938'0 level. We remain long out of the money calls and/or call spreads in Dec. Corn. I will be looking to go long Dec. Wheat below the 470'0 level if the market allows.
Cattle: Oct. Live Cattle closed 67 higher at 86.77. Over night the market is 32 higher at 87.10. If you remain long either take the short term profit above the 87.00 level or raise your protective sell stop to your break even level. My near term upside objective is the 87.35. Longer term my objective is the 88.50 level.
Silver: Dec. Silver is currently 42 cents higher at 15.78. My near term upside objectives have been met. If you are long multiple contracts, take partial profits.
S&P's: Sept. S&P's are currently 4.75 higher at 999.00. Near term support is currently the 983.00 level and near term resistance the 1006.00 level. I am a seller in the 1006.00 area with the risk being the recent highs in the 1038.00 area.
Currencies: As of this writing the Sept. Euro is 15 higher at 1.4288, the Swiss 7 higher at .9439, the Yen 43 lower at 1.0807 and the Pound 78 higher at 1.6356. We remain long out of the money puts and/or put spreads in the Dec. Pound and the Dec. Yen. The Sept. Dollar Index is currently 11 lower at 78.325.
Financials: Dec. Bonds are currently 13 lower at 120'24, the 10 Yr. Notes 10 lower 117'24, the 5 Yr. Notes 5 lower at 115'24 and the 2 Yr. Notes 1 lower at 108'11. Yesterday we took one of two actions against a recent short position in Dec. Bonds. Number one, our recommended buy stop was penetrated when the market traded through the 120'10 level. Number two, some of you elected the second option of selling the Dec. 116'00 put against your short position and you should have collected at least 1'22 points ($1,343.25). This will leave you short the Dec. Bonds and short the Dec. Bonds 116'00 put. This strategy still leaves you with an open ended risk but will reduce the risk by the amount you collected by selling the put. It also limits the profit potential to the 114'21 level (116'00-1'22/64ths = 114'21). Tomorrow there will be a monthly Unemployment Report.