Financials: Sept. Bonds are currently 18 lower at 124'15 and the Sept. 10 Yr. Note 8 lower at 123'03. The yield on the 10 Yr. Note is now just above the 3.0% level (3.02% on the June contract). We remain long the Sept. 10 Yr. Note 121'00 put from below the 35/64ths level and will look to take profits above the 54/64ths level (currently trading at 46/64ths) if the market allows.
Grains: Yesterday July Beans closed 31 cents lower, Corn 22 lower and Wheat 28 lower. Improvement in the weather and somewhat better than expected crop progress pressured the Grains throughout the session. Over night beans were 3 higher, Corn 1 lower and Wheat 1 lower. We continue to hold a combination of long Dec. Wheat and short the 900'0 call which is about 10 cents against us. Support for July Corn is currently the 726'0 area, if this level is broken the next level of support will be around 710'0.
Cattle: Yesterday Live cattle closed 150+ lower for the day and Feeder Cattle slightly lower. We continue on the sidelines awaiting an opportunity to buy the Dec. Cattle 116/120 call spread at 100 points (currently about 135 points).
Silver: July Silver is currently 45 cents higher at 37.25 and Aug. Gold 1.00 lower at 1546.00. We continue to hold a small long position in July Silver.
S&P's: June S&P's are currently 6.00 higher at 1291.00 We continue to hold a combination of short futures and short the June 1330 put. There is very little excess premium in the 1330 put at the current price level and you may consider covering the both the futures and option position. If you remain net short a futures position either take profits or lower your protective buy stop to the 1296.00 level.
Currencies: As of this writing the Sept. Euro is 71 higher at 1.4614, the Swiss 5 lower at 1.1955, the Yen 17 lower at 1.2480 and the Pound 87 higher at 1.6462. I am leaning towards the short side of both the Swiss and the Euro. Consider going short the Sept. Euro 150 call or long the 1.42 put, either of which carries a bit less risk than an outright futures position. Keep in mind that being short calls (or puts) carries unlimited risk and limited profit potential.
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