Financials: Dec. Bonds are currently 11 lower at 119'13, the 10 Yr. Notes 1 lower at 117'04, the 5 Yr. Notes unchanged at 115'08 and the 2 Yr. Notes 1 higher at 108'06.5. Yesterday we rolled our short Bond position into the Dec. contract and will use a protective buy stop at 120'10. If the market trades below the 118'20 level lower your buy stop to the 119'31 level. I'm sure that you noticed that the Dec. contract is at a discount to the Sept (about 1'05). In terms of price this will change my downside objectives from the Sept. contract. Near term my objective is the 117'00 level and longer term my objective is now the 115'00 level. One more thing to note, the minimum tick size in the Bonds has changed from 0.5 ($15.625) to 1.0 ($31.25) as of August 31st.
Grains: Yesterday Nov. Beans were 31 cents lower, Dec. Corn fractionally higher and Dec. Wheat 3 higher. Over night Beans were 2 lower, Corn 3 lower and Wheat 2 lower. I am still looking to reinstate a long position in Nov. Beans on a break below the 963'0 level and will use an initial protective sell stop at 913'0 for protection. We remain long out of the money calls and/or call spreads in Dec. Corn. As mentioned yesterday I will be a buyer in Dec. Wheat on a 30+ cent break from current levels.
Cattle: Yesterday Oct. Cattle closed 2 lower at 86.67 after making a low on the electronic market at 85.92 and in the pit at 86.00. If you went long in the 86.00 area, use a 100 point protective sell stop. The market is currently trading at 86.82. For short term traders, take profits above 87.35. Longer term resistance is in the 89.35 area.
Silver: Dec. Silver is currently 12 cents lower at 14.79. We continue to hold long positions. For those of you who trade multiple contracts I will recommend adding on a break below the 13.80 level.
S&P's: Sept. S&P's are currently 2.00 lower at 1018.00. At the moment this market is continuing to hold the near term support level of 1014 despite some inter-day dips to the 1011.00 level. I remain on the sidelines having stubbornly missed the rally in the last few weeks. To be honest, if you have been reading my comments, I have been negative this market for some time. I remain so but remain on the sidelines trying to avoid standing in front of a freight train. I will wait for a sell signal, a close below 1006.00, before I am willing to trade. Resistance remains at 1038.00.
Currencies: As of this writing the Sept. Euro is 8 lower at 1.4322, the Swiss 10 higher at .9449, the Yen 23 lower at 1.0733 and the Pound 56 lower at 1.6210. We remain long out of the money puts and/or put spreads in both the Dec .Pound and the Dec. Yen. The Sept. Dollar Index is currently 7 higher at 78.290.