Financials: Bonds are currently 16 higher at 116’06, the 10 Yr. Notes 2 higher, the 5 Yr. Notes 2 higher and the 2 Yr. Notes 2 higher at 107’26. The Dec. Eurodollars are 2 higher at 98.96. The CPI report this morning showed an increase of 0.1% versus expectations of 0.3%. This showed that inflation is not as much of a threat as anticipated causing these markets to rally. Yesterday we went short Dec. Eurodollars. Sept. Bonds have now rallied into near term resistance in the 116’08 area and I am looking to trade this market from the short side.
Grains: Yesterday Beans were 4 cents higher, Corn 2 lower and Wheat 9 lower. I am still looking to treat any further breaks in these markets as buying opportunities.
Cattle: Yesterday Live Cattle closed 30-67 lower with the Aug. contract closing 45 lower at 80.37. We have been stopped out of a recent long position.
Silver: July Silver is currently 8 cents lower at 14.04. Over night the market traded as low as 13.93. Yesterday we went long early in the session and we are currently using a protective sell stop $1.00 below our entry level for protection.
S&P's: Sept. S&P’s are currently 1.00 lower at 906.75. This mornings CPI report has slightly lifted the market off of the over night low of 903.00. Yesterdays near term support of 914.00 has been violated putting the next level of support just below the 900.00. As I have mentioned in my last few comments I remain negative this market overall. This does not mean that money cannot be made in the short term from the long side. I recommend trading from the long side on breaks below the 900.00 level for a short term trade (1-3 days).
Currencies: As of this writing the Sept. Euro is 34 higher at 1.3867, the Swiss 2 higher, the Yen 36 higher and the Pound 161 lower at 1.6271. The Sept. Dollar Index is trading 2 lower at 81.110. I remain on the sidelines.