Financials: Sept. Bonds are currently 15 lower at 116’23, the 10 Yr. Notes 13 lower, the 5 Yr. Notes 7 lower and the 2 Yr. Notes 2 lower. Dec. Eurodollars are 2 lower at 99.030. We remain short Dec. Eurodollars with a downside objective of 98.770. Yesterday the Bonds gave us the opportunity to go short above the 117’04 level, making a high of 117’14.5. If you went short only looking for a short term trade either take profits or use a protective buy stop just above yesterday’s high. If the market trades below 116’14 lower your buy stop to 116’31. For the moment my downside objective is the 115’28 area.
Grains: Yesterday Beans were 23-27 cents higher with old crop contracts gaining slightly on new crop. Corn was 3 cents higher and Wheat fractionally higher. Over night Beans were about a penny lower, Corn fractionally higher and Wheat 4 cents higher. If you remain long Dec. Corn continue to use a sell stop at 388’0. If the market trades above 413’0 raise your stop to the 393’0 level. For those of you who went long Nov. Beans earlier in the week, either take profits or raise your sell stop to the 982’0.
Cattle: Yesterday Live Cattle closed 25-47 higher with the Aug. contract closing 47 higher at 83.32. Yesterday provided a short term profit taking opportunity for recent long positions as the market traded as high as 83.60 (see yesterdays comments). My near term objective remains at 84.00 and longer term 85.10. Raise your sell stop to your break even level.
Silver: July Silver is currently 20 cents higher at 14.04. We remain long with a protective sell stop $1.00 below our entry level. If the market trades above the 14.45 level, raise your sell stop to the 13.45 level. I recommend “rolling” July positions into either the Sept. or Dec. contracts by the end of the week to avoid a delivery situation.
S&P's: Sept. S&P’s are currently 9.00 higher at 899.25. Yesterday we were stopped out of a recent long position from the 896.00 level when our sell stop at 885.50 was touched off. Near term support is currently 883.00 and near term resistance the 905.00 area. Treat as a trading market.
Currencies: As of this writing the Sept. Euro is 24 lower at 1.4052, the Swiss 124 lower, the Yen 15 lower and the Pound 105 higher at 1.6555. As mentioned over the past few days I am willing to try the short side of the Pound above the 1.6600 level. The Sept. Dollar Index is currently 2 lower at 80.155. I remain on the sidelines.