Financials: Bonds are currently 4 higher at 119'17, the 10 Yr. Notes 4 higher, the 5 Yr. Notes 3 higher and the 2 Yr. Notes 1 higher. Dec. Eurodollars are 2 higher at 99.220. Yesterday we were stopped out of our short Bond position in the 119'140 area. With lower equity and commodity prices it appears that inflation is less of a risk and this market will find support at lower prices as well as be a vehicle for a flight to safety if the stock market works lower from present prices. For the time being I am looking at the Bonds as a trading vehicle between 117'280 and 120'240. We remain short Dec. Eurodollars. Long term I feel that interest rates will creep higher and will maintain this position.
Grains: Yesterday Nov. Beans were 68 cents lower, Corn 8 lower and Wheat 6 lower. Over night Beans were 1 cent higher, Corn fractionally higher and Wheat 1 higher. I continue to remain on the sidelines. I am looking to sell short the Nov. Beans 740 put at around 20'0 (20 cents) if the market allows. Keep in mind that this position has open ended risk. For the most part stops are not taken on option positions, so this position will have to be monitored carefully. I am willing to risk $600 at the moment.
Cattle: Yesterday Aug. Live Cattle closed 22 lower and Oct. Cattle 62 lower. Currently the market is about 25 lower. We remain long with a protective sell stop 125 points below entry level.
Silver: Sept. Silver is currently 26 lower at 12.95. We remain long with a protective sell stop at 12.92. The market has made an overnight low of 12.935 on the full sized contract and 12.911 on the mini contract. A stronger Dollar against the Euro and other European currencies and lower overall commodity prices (especially crude oil) has pressured this market over the last few sessions.
S&P's: Sept. S&P's are currently 1.25 higher at 880.50. Yesterday we went long in the 883.00 area and will use a protective sell stop at 867.00. The market is currently trading near the lows made May, 2009. The market is trading at near term support levels. Resistance is currently 896.00. I recommend only short term trades with limited risk for the near term.
Currencies: As of this writing the Sept. Euro is 11 lower at 1.3918, the Swiss 8 lower, the Yen 67 higher and the Pound 50 lower at 1.6099. If you remain short the Pound either take profits or lower your protective buy stop to the 162.90 level. The Sept. Dollar Index is 1 lower at 80.845.