Financials: Dec. Bonds are currently 11 lower at 118'23, the 10 Yr. Notes 1 lower at 117'00, the 5 Yr. Notes 1 higher at 115'17 and the 2 Yr. Notes 1 higher at 108'11. We continue to hold the combination of short the Dec. Bonds and short the Dec. Bonds 116'00 puts. Over night pressure on the dollar has put pressure on the long side of the yield curve as can be observed by the lower Bond market and higher prices for the shorter end of the curve (5 Yr. and 2 Yr.).
Grains: On Friday Beans were 8 cents lower at 922'o, Dec. Corn 5 lower at 306'2 and Dec. Wheat 4 lower at 471'6. Over night Beans were 13 higher, Corn fractionally higher and Wheat fractionally higher. Over night we were stopped out of a recent long position in the Beans as the market traded below the 913'0 level early in the session. Consequently the market rallied later in the session as the dollar fell sharply and made Beans look attractive because of cheaper dollars. We remain long out of the money calls and/or call spreads in Dec. Corn. I am once again recommending going long Dec. Wheat on any further breaks from present levels. Consider reinstated a position in either Nov. Bean futures or out of the money calls and/or call spreads in the Nov. or Jan. contract months.
Cattle: Oct. Cattle is currently 40 higher at 87.05. If you remain long either take the short term profit or raise your protective sell stop to your break even level. Near term resistance remains at 87.35. The next level of resistance will be the 88.50 area.
Silver: Dec. Silver is currently 43 cents higher 16.72. Last week we took partial profits and will remain long with the balance of our position.
S&P's: Dec. S&P's are currently 10.00 higher at 1020.00. Last week we went short this market above the 1006.00 level. I am currently recommending using a protective buy stop just above the recent highs of the 1038.75 level.
Currencies: As of this writing the Euro is 171 higher at 1.4480, the Swiss 117 higher at .9548, the Yen 82 higher at 1.0833 and the Pound 151 higher at 1.6549. Many analysts are now looking at the U.S. percentage of debt in relation to GDP which is expected to be higher in the U.S. as compared to that of other developed nations. We will have to see if the current rally sustains for more than a day or two. Position wise we are still long out of the money puts and/or put spreads in the Dec. Pound and Dec. Yen. If the Pound closes above the 1.6650 level for the week I will be looking to liquidate the Pound position. The Dec. Dollar Index is currently 79 lower at 77.480, below recent support of 78.00.