Financials: Bonds are currently 1'04 lower at 113'11, the 10 Yr. Notes 1'04 lower, the 5 Yr. Notes 28 lower and the 2 Yr. Notes 13 lower at 107'30. Dec. Eurodollars are 18 lower at 98.810. This mornings Employment Report showed a loss in non-farm payrolls of 345,000 jobs, far less than the surveyed estimates of 520,000. The unemployment rate is now 8.9% versus expectations of 9.0-9.2%. This caused an immediate reaction to the downside in Bond and Note futures (an indication of higher rates). We remain short the Sept. 2 Yr. Notes and Dec. Eurodollars.

S&P's: June S&P's are currently 11.00 higher at 951.50. I am currently on the sidelines. the market is now above the Nov. 10, 2008 high of 950.50 and the long term trend may be pointing higher. I am going to wait until next week to initiate any new trades.