Silver: July Silver is currently 10 cents higher atm13.81. We remain long with a protective sell stop $1.00 below our entry level. If the market trades above 14.45 raise your sell stop to the 13.45 level. I recommend rolling your position into either the Sept. or Dec. contract by the end of the week to avoid a delivery situation.
Financials: Sept. Bonds are currently 11 lower at 116’00, the 10 Yr. Notes 7 lower, the 5 Yr. Notes 5 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are 2 lower at 98.980. We remain short the Dec. Eurodollars with a small loss. My downside objective is currently the 98.770 level. As for Sept. Bonds, I remain on the sidelines and will look at rallies above the 117’04 level as an opportunity to go short if the market allows.
Grains: Yesterday Beans were 25 cents lower, Corn 14 lower and Wheat 9 lower. Over night Beans were 13 higher, Corn fractionally higher and Wheat 3 higher. If you went long Nov. Beans yesterday use a protective sell stop at 964’0. If the market trades above the 1005’0 level, either take profits or raise your sell stop to the 982’0 level. If you went long Dec. Corn use a protective sell stop at 388’0. If the market trades above the 413’0 level raise your stop to 493’0.
Cattle: Yesterday Live Cattle closed 55-77 higher depending on the contract month. Aug. Cattle closed 72 higher at 82.85. If you went long one hour after the opening, as mentioned in yesterday’s comments, you would have been able to buy the Aug. contract at about 82.40. I am recommending risking 100 points initially. If the market trades above the 83.40 level either take profits or raise your sell stop to your break even level. My near term objective is currently 84.00. If this level is successfully penetrated to the upside, my next objective will be 85.10. The market is currently trading at 83.00.
S&P's: Sept. S&P’s are currently 4.00 higher at 892.50. Yesterday the market traded through my recommended support level of 896.00. If you went long at this level I recommend using a protective sell stop at 885.50. Near term resistance is currently the 908.00. As I have mentioned over the last few days I am only looking for short term trades at the moment. If the market trades above the 905.00 level, take profits from any new long positions.
Currencies: As of this writing the Sept. Euro is 137 higher at 1.4000, the Swiss 110 higher, the Yen 7 higher and the Pound 17 higher at 1.6359. The Sept. Dollar Index is currently 56 lower at 80.560. My only currency recommendation at this time is to go short the British Pound if the market rallies above the 1.6600 level.