Financials: Bonds are currently 3 lower at 114’02, the 10 Yr. Notes 4 lower, the 5 Yr. Notes 1 lower and the 2 Yr. Notes unchanged. Dec. Eurodollars are 3 higher at 98.870. Yesterday we covered a recent short position in Sept. Bonds. We remain short Dec. Eurodollars with a downside objective below the 98.780 level. As mentioned yesterday, I am hesitant to take a position on the long end of the yield curve (30 Yr. & 10 Yr.) for more than a day or two because of market uncertainty. For the near term, support for Sept. Bonds is the 113’24 area and resistance the 116’00 area. Treat as a trading market.
Grains: Yesterday Beans were 7 cents higher to 7 cents lower depending on the contract month with old crop gaining on new crop. Corn was 4 cents lower and Wheat 5 lower. I still like going long new crop contracts in Beans and Corn on breaks from current levels.
Cattle: Yesterday Live Cattle closed 22-57 higher with the Aug. contract closing 32 higher at 81.70. I believe that market participants will be watching closely to see if the Aug. contract can close above its recent high of 82.10. If this should occur it could signal a rally to the 84.00 area.
Silver: July Silver is currently 8 cents higher at 14.32. We remain long with a protective sell stop $1.00 below our entry level. If the market trades above the 12.45 level I recommend raising your sell stop to the 13.45 level.
S&P's: Sept. S&P’s are currently 7.00 higher at 920.75. I am still looking to treat this market as a trading affair between 896.00 and 923.00 with a risk of 10.00 for the day.
Currencies: As of this writing the Sept. Euro is 31 higher at 1.3923, the Swiss 15 higher, the Yen 15 lower and the Pound 114 higher at 1.6462. The Sept. Dollar Index is currently 23 lower at 80.780. I remain on the sidelines.