Financials: Dec. Bonds are currently 12 higher at 120'11, the 10 Yr. Notes 1 higher, the 5 Yr. Notes 2 lower and the 2 Yr. Notes 2 lower. Disappointing home sales and durable goods numbers have added a bit of support over the last 2 sessions. Given those reports I still have not changed my opinion of this market and feel that rates over the next few months will edge higher. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put.
Grains: Yesterday Nov. Beans were 1 lower at 921'4, Dec. Corn 6 higher at 336'4 and Dec. Wheat 13 higher at 473'0. Over night the Beans were 3 lower, Corn fractionally lower and Wheat 1 lower. We remain long out of the money calls in Dec. Corn and long futures in Dec. Wheat. If the Dec. Wheat trades above 487'0 either take profits or enter a protective sell stop 10 cents above your entry level.
Cattle: Yesterday Oct. Cattle closed 35 lower at 86.10 and Dec. Cattle 47 lower at 85.27. Over night the market is trading slightly lower. I continue to remain on the sidelines. For those of you watching Cattle Spreads, consider going long Dec./ short Apr. at 300 points premium the Apr. I will be looking to go long Dec. Cattle below 84.00 if the market allows.
Silver: Dec. Silver is currently 21 cents lower at 16.09. We remain long with a reduced position. I will be looking to be a buyer below the 15.40 level if the market allows.
S&P's: Dec. S&P's are currently 2.00 lower at 1042.00. We remain long out of the money puts as both portfolio insurance and a speculative position.
Currencies: As of this writing the Dec. Euro is 5 lower at 1.4648, the Swiss 16 lower at .9697, the Yen 108 higher at 1.1067 and the Pound 114 lower at 1.5948. We remain long puts and/or put spreads in the Pound. If your strike price on the long leg of a put spread or out right put position in the Yen is 1.6000 or higher I encourage you to roll it down to the 1.5800 strike price. This should take most of your original investment off the table so to speak and still leave you in the market. We remain long out of the money puts in the Yen. The Dec. Dollar Index is currently 1 higher at 77.130.