Financials: Sept. Bonds are currently 5 lower at 124'02 and the 10 Yr. Note 5 lower at 123'05.5. The Sept. Bond/ Sept. 10 Yr. Note spread is currently at 1'00 premium the Bonds and has held yesterdays support of 0'28 premium the Bonds. The big news this morning: Greece approves austerity measures. I still like the short side of the Bonds on a rally to the 125'26 area if the market allows. Resistance for the long 10 Yr. Note/short Bond spread remains at 1'17 premium the Bonds.
Grains: Yesterday Beans closed 4 cents higher, Corn 25 higher and Wheat 21 higher. Over night Beans were 14 higher, Corn 23 higher and Wheat 16 higher (Sept. contracts). We continue to hold a combination of long futures and short out of the money calls in Dec. corn and Wheat. We have also added out of the money call spreads in Sept. and Dec. Corn to be positioned for tomorrows Grain report.
Cattle: Yesterday Aug. Live Cattle and Aug. Feeder Cattle closed moderately higher. The market has since given up those gains over night with the Live Cattle slightly lower and Feeder Cattle 50 lower in response to higher grain prices. If you remain long Dec. Cattle, I recommend taking profits.
Silver: Sept. Silver is currently 58 cents higher at 34.23. We continue to hold a small long position.
S&P's: Sept. S&P's are currently 2.00 higher at 1296.50. The market has broken from the overnight high of 1304.25 since Greece passed their austerity measures. It will be interesting to see how this plays out as some degrr of civil unrest is expected because of the austerity measures. Yesterday we went short in the 1293.00 area. We are currently using a protective buy stop just above the 1309.00 level.
Currencies: As of this writing the Sept. Euro is 5 lower at 1.4326, the Swiss 54 lower at 1.1972, the Yen 57 higher at 1.2388 and the Pound 23 higher at 1.5998. Both the Swiss and the Euro have broken from the overnight highs since the passing of Greek austerity measures. I recommend the short side of the Euro with a protective buy stop above the overnight high of 1.4416.
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