Financials: Sept. Bonds are currently 17 higher at 116'30, the 10 Yr. Notes 6 higher at 115'26, the 5 Yr. Notes 3 higher at 114'20 and the 2 Yr. Notes 1 higher at 108'02. The Dec. Eurodollars are 3 higher at 99.280. We remain short the Dec. Eurodollars. U.S. 2nd Quarter Productivity this morning showed an increase in non-farm productivity of 6.4% versus expectations of 5.5% with unit labor costs declining 5.8% versus expectations of a decline of 2.9%. The Bond market rallied off of these numbers due to the decline in labor costs. The market is also expecting ample participation in upcoming Treasury Auctions. That being said, I am looking at further rallies as selling opportunities as the Bonds near resistance in the 117'00 to 118'00 areas.
Grains: Yesterday Nov. Beans were 28 cents lower, Dec. Corn 4 higher and Dec. Wheat 4 higher. Over night Beans were 17 higher, Corn 3 higher and Wheat 4 higher. We remain long out of the money calls and/or call spreads in Dec. Corn. We also remain long Dec. Corn futures with a protective sell stop at 317'0. If the market trades above the 343'0 level, raise your stop to the 324'0 level. Support and resistance for Nov. Beans remains at 980'0 and 1060'0.
Cattle: Yesterday Live Cattle closed 52-80 lower depending on the contract month. Oct. Cattle closed 80 lower at 88.32. I remain on the sidelines.
Silver: Sept. Silver is currently 5 cents lower at 14.315. I will be looking to reinstate a long position between 13.80 and 14.20.
S&P's: Sept. S&P's are currently 7.50 lower at 1000.00. I remain on the sidelines but must admit I am leaning toward the short side of the market. Continue to treat as a trading market between 984.00 and 1008.00.
Currencies: As of this writing the Sept. Euro is 13 lower at 1.4119, the Swiss 13 higher at .9225, the Yen70 higher at 1.0377 and the Pound unchanged at 1.6458. If you remain short the Pound, either take profits or lower your protective buy stop to the 1.6580 level. We remain long out of the money puts and/or put spreads in the Yen.