Financials: Bonds are currently 11 higher at 137'29 and the 10 Yr. Note 7 higher at 130'07. Yesterday we sold out of our out of the money puts and took profits. This morning the market awaits Fed Chairman Bernanke's speech from Jackson Hole. Personally I do not thing that he will say anything that will indicate a change in current Fed policy. There is however speculation about the possibility of QE (quantitative easing)3. I am on the sidelines.
Grains: Yesterday Beans closed fractionally lower, Corn fractionally higher and Wheat 10 cents higher. Over night Beans were 2 lower, Corn 1 lower and Wheat 6 lower. I am presently on the sidelines having taken profits on all Dec. Corn call and/or call spreads.
Cattle: Yesterday Oct. Live Cattle closed 17 higher at 114.10 and Oct. Feeder Cattle 17 higher at 132.20. If you remain short Oct. LC either take profits or lower your protective buy stop to 114.90. If you remain short Oct. FC either take profits or lower your buy stop to 132.90. Personally I prefer to take profits and reinstate the positions on a rally.
Silver: Dec. Silver is currently 3 cents higher at 40.85. Support is currently in the 38.00- 39.00 area. I will be looking to be a buyer below the 38.50 level. Dec. Gold is currently 12.00 higher at 1776.00. Treat as a trading market between 1710.00 and 1810.00. I still prefer the short side of the market on sharp rallies.
S&P's: Sept. S&P's are currently 8.00 lower at 1150.00. Yesterday my near term objective of 1180.00 was reached as well as my protective sell stop (against long positions) of 1162.00. I once again am willing to try the long side of the market. Support is currently 1143.00 and resistance 1174.00. Admittedly the market is under pressure due to weakness in the DAX (German stock market) which has fallen sharply in the last 2 sessions.
Currencies: As of this writing the sept. Euro is currently 48 higher at 1.4412, the Swiss 6 lower at 1.2595, the Yen 153 higher at 1.3049 and the Pound 19 lower at 1.6261. This morning I am recommending the Oct. Yen 1.24 put at 32 points or better.
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