Financials: Mar. Bonds are currently 19 lower at 141'15 and the 10 Yr. Notes 8 lower at 129'31. We remain long out of the money puts and/or put spreads for either Jan. or Mar. expiration in Bonds and 10 Yr. Notes. I am still looking at the Bonds as a trading affair between 140'20 and 143'18. I am also looking at the long 5 Yr. Note/ short 10 Yr. Note (currently at 6'29 premium the 10 Yr. Note) at 7'15 premium the 10 Yr. Note if the market allows.
Grains: Yesterday Jan. Beans closed 5 cents higher, Corn fractionally lower and Wheat 1 lower after opening moderately lower due to the yesterday's strength in the Dollar. Over night Beans were 2 higher, Corn 3 higher and Wheat 5 higher. I feel these markets may be forming a short term bottom around Monday's lows of 1096'0 in Jan. Beans and 583'4 in Mar. Corn.
Cattle: Yesterday Feb. LC closed 20 higher 118.65 and Jan. FC 90 higher at 143.00 after seeing 100+ point losses early in the session. We have covered the combination of short Feb. LC and short the Feb. LC 118 put putting us on the sidelines at the moment. We were unable to put on the short Feb. LC 116 put/long Feb. LC 112 put spread at 135 premium the 116 put and have cancelled the order.
Silver: Mar. Silver is currently 34 cents higher at 31.35. Feb. Gold is currently unchanged at 1668.00. Gold traders should take note that we are approaching support in the 1610-1635.0 area.
S&P's: Mar. S&P's are currently 6.00 higher at 1235.00. As mentioned yesterday the 1220.00 area is midway between the high's and low's for the year. For the short term the market held this level handily making a low of 1220.50. That being said the market did NOT rally like "gangbusters", rallying a scant 1.5% off of this level. I am on the sidelines.
Currencies: As of this writing the Mar. Euro is currently 6 lower at 1.3177, the Swiss 9 lower at 1.0666, the Yen 6 higher at 1.2873 and the Pound 9 lower at 1.5547. Yesterday we rolled long put positions in the Euro and the Yen to lower strike prices in an effort to take advantage of yesterday's price decline.
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