Financials: Sept. Bonds are currently 1'13 higher at 120'22, the 10 Yr. Notes 29 higher at 118'13, the 5 Yr. Notes 17 higher at 116'10 and the 2 Yr. Notes 4 higher at 108'19. Dec. Eurodollars are 3 higher at 99.410. We remain short both the Dec. Eurodollars and the Sept. Bonds. For short term traders: Yesterday the Bonds fell below 119'12 which gave the opportunity to lower your buy stop to the 120'19 level which has been violated. For long term traders: I still like the short side of the Bonds and am willing to sit through the current losses. Long term resistance is the 122'11 level which was the high made May 15th, 2009. I am ready to throw in the towel so to speak on the short Dec. Eurodollar position which is currently at a 50 point loss ($1250). In retrospect we would have been better off selling the Dec. 2010 contract which has not had as dramatic a rally as the nearby contracts have.
Grains: Yesterday Nov. Beans closed 4 cents higher, Dec. Corn fractionally higher and Dec. Wheat 1 lower. Over night Beans were 14 lower, Corn 3 lower and Wheat 1 lower. We remain long out of the money calls and/or call spreads in Dec. Corn. We also remain long Nov. Beans with a protective sell stop at 915'0. I must admit that the crops look good right now and we could have a record Bean crop. There also exists the possibility of an early frost. I also believe that demand is what could rally this market. An overall weak dollar should also help these markets in spite of the dollars recent rally.
Cattle: Yesterday Oct. Live Cattle closed 102 higher at 88.85. I remain on the sidelines.
Silver: Sept. Silver is currently 31 cents lower at 13.65. As I have mentioned in the last few Reports, we are long but with a reduced position for those of you who trade multiple contracts. Near term support is 13.25 with longer term support at 12.50. I will be a buyer in the Dec. contract below the 12.85 level if the market allows.
S&P's: Sept. S&P's are currently 11.00 lower at 978.50. Near term support is currently 963.00 and resistance 996.00. I still prefer the short side of this market on rallies. For long term traders I am willing to go short in the 992.00 area with a protective buy stop at 1014.00.
Currencies: As of this writing the Sept. Euro is 26 lower at 1.4113, the Swiss 5 higher at .9307, the Yen 78 higher 1.0647 and the Pound 163 lower at 1.6406. I continue to recommend being long out of the money puts and/or put spreads in the Dec. Yen. I am also recommending belong long the Dec. Pound 160/155 put spread. The Sept. Dollar Index is currently 16 higher at 79.195.