Financials: Sept. Bonds are currently 2 higher at 131'11 and the 10 Yr. Note unchanged at 127'02. The NOB spread is currently at 4'10 premium the Bonds. I am still holding this spread but willing to take a loss if the spread trades below the 3'10 level premium the Bonds. Unemployment claims were down 7K for the week vs. expectations of an increase of 1K. The yield for the 10 Yr. is now just below the 2.7% level and the Yield on the 30 Yr. Bond in now 3.89%.
Grains: Yesterday Sept. Beans closed 6 lower, Corn 5 lower and Wheat 7 lower. Over night Beans were 14 lower, Corn 11 lower and Wheat 12 lower. Over night intervention against the Yen has rallied the Dollar pressuring the Grains. We remain long call spreads in Corn.
Cattle: Yesterday Oct. LC closed slightly higher at 118.275. Resistance remains in the 118.50 area. Oct. FC closed about 150 lower at at 136.525 generating a minor signal having closed below the 137.00 level. I continue to favor the short side of the market on rallies.
Silver: Sept. Silver is currently 25 cents higher at 42.03. I fell this market is in resistance.
S&P's: Sept. S&P's are currently 15.00 lower at 1239.50. I am currently long the market (actually short the Sept.1300 put) having covered all short futures positions. A stronger dollar and renewed (or should I say ongoing) fears of European sovereign debt have pressured the market. Support is currently 1230.00 and resistance 1260.00.
Currencies: As of this writing the Sept. Euro is 150 lower at 1.4150, the Swiss 60 lower at 1.2968, the Yen 370 lower at 1.2644 and the Pound 84 lower at 1.6329. We are long out of the money puts in the Swiss.
888.908.4310 | 312.264.4310