Trading Recommendations For Tuesday

By IBTimes Staff Reporter | September 29 2009 9:56 AM

Financials: Dec. Bonds are currently 3 lower at 121'11, the 10 Yr. Notes 3 lower at 118'03, the 5 Yr. Notes 2 lower at 115'28 and the 2 Yr. Notes 1 lower at 108'13. We are still holding the combination of short Dec. Bonds and short the Dec. Bond 116'00 put. My intention is to cover the 116'00 put at 15 points if the market allows (currently it is at 44). As of this morning the guesstimate for Friday's month Unemployment Report is for a loss of 200,000 non-farm payroll jobs.

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Grains: Yesterday Nov. Beans were 6'4 lower, Dec. Corn 4'6 higher and Dec. Wheat 6'0 higher. Over night Beans were fractionally higher, Corn 3 higher and Wheat about 4 higher. We remain long Dec. Wheat and long out of the money calls in Dec. Corn.

Cattle: Yesterday Oct. Cattle was 5 higher at 86.10 and Dec. Dec. Cattle 42 higher at 85.77. The Dec. /Apr. spread closed at 227 premium the Apr. with the Dec. gaining 37 points for the day. This morning the market is trading slightly higher. If you are long Dec./short Apr. take profits on the spread at 190 premium the Apr. if the market allows. I will be a buyer in Dec. Cattle if the market allows at 84.00.

Silver: Dec. Silver is currently 12 cents lower at 16.07. We remain long. I will be a buyer below the 15.40 level.

S&P's: Dec. S&P's are currently unchanged at 1059. Yesterday the market rallied on renewed interest in mergers and acquisitions. Support is currently the 1035 area and resistance the 1075 area. We remain long out of the money puts.

Currencies: As of this writing the Dec. Euro is 32 lower at 1.4558, the Swiss 43 lower at .9631, the Yen 34 lower at 1.1112 and the Pound 80 higher at 1.5948. We remain long out of the money puts and/or put spreads in the Pound with the 1.5700 or 1.5800 as the strike price for either the long leg of spreads or outright put position. We also remain long out of the money puts in the Yen. The Dec. Dollar Index is 11 higher at 77.380.