Financials: Dec. Bonds are currently 2 higher at 134'09. Yesterday's resistance of 133'24 has been penetrated putting resistance now at the 134'12 level. Support is currently 132'18. I remain on the sidelines and feel that yields are too low to be chasing this market on the upside. Yesterday we bought the June 2012 Eurodollar 97.50 puts speculating that rates will eventually head higher.
Grains:.Yesterday Nov. Beans closed 18 lower, Dec. Corn 12 lower and Dec. Wheat 21 lower. Over night Beans were 19 lower, Corn 13 lower and Wheat 19 lower. Favorable S. American weather and funds reducing risk exposure are pressuring the Beans this morning. The next level of support is the 1070'0 level. Corn is also under pressure as large long positions head for the sidelines. The next level of support for Dec. Corn is the 465'0 level where I will be looking to the long side of the market.
Cattle: This morning Live and Feeder Cattle are trading moderately lower after yesterday's higher prices. I will be looking to the long side of the Dec. Cattle on a break to the 96.00 level and the long side of Nov. Feeders in the 108.00 area.
Silver: Dec. Silver is currently 10 cents higher at 21.81. Over night Silver traded above the 22.00 level reaching my long term objective. If you continue to hold any calls and/or call spreads I recommend liquidating. If you remain long futures either take profits or raise your protective sell stop to the 21.15 level.
S&P's: Dec. S&P's are currently 1.00 lower at 1140.50. Yesterday we were stopped out of a redent short position when the market traded through our break even level after trading as low as 1127.25. I am once again going to try the short side of the market with a protective buy stop at 1151.50.
Currencies: As of this writing the Dec. Euro is 44 higher at 1.3603, the Swiss 8 higher at 1.0255, the Yen 20 higher at 1.1944 and the Pound 18 higher at 1.5800. We remain long the Dec. Yen 1.12 put. Yesterday we tried the short side of the Euro and wheere stopped out with a loss. I am going to once again try the short side of the Euro with a buy stop at 1.3710. Given the recent debt problems in Ireland and Portugal I feel the Euro is vulnerable.
Senior Market Analyst, Price Futures Group
Publisher, Nemenoff Letter