Financials: Dec. Bonds are currently 11 lower at 118'22, the 10 Yr. Notes 3 lower at 116'23, the 5 Yr. Notes 1 lower at 115'03 and the 2 Yr. Notes unchanged at 108'08. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put. I will be willing to do the long Dec. 10 Yr. Notes/ short Dec. Bonds spread at 3'04 premium the Bonds if the market allows.
Grains: Yesterday Nov. Beans were 27 cents lower, Dec. Corn 2 lower and Dec. Wheat 1 lower. Over night Beans were 8 higher, Corn 3 higher and Wheat 6 higher. Yesterday the market gave the opportunity to cover the short leg of any call spreads with a strike price of 400'0 or higher below 2'0 leaving us long out of the money calls. We also remain long Dec. Wheat with an upside objective in the 490'0 area. 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 57 lower at 8497 and the Dec. 37 lower at 84.52. I am still on the sidelines observing how the Dec. Cattle reacts once the 84.00 level is tested.
Silver: Dec. Silver is currently 37 cents higher at 17.25. We remain long.
S&P's: Dec. S&P's are currently 6.50 higher at 1067.00. 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 127 higher at 1.4804, the Swiss 94 higher at .9385, the Yen 105 higher at 1.0965 and the Pound 123 higher at 1.6315. We remain long out of the money puts in the Dec. Yen and long out of the money puts and/or put spreads in the Pound. The Dec. Dollar Index is currently 73 lower at 76.27.
I welcome your comments and suggestions.