Financials: Mar. Bonds are currently 7 lower at 145'02 and the 10 Yr. Note 4 lower at 131'01. On Friday we were stopped out of a short position in the Bonds when they traded above the 145'07 level. We continue to hold the long 5 Yr. Note/ short 10 Yr. Note spread from the 7'15 premium the 10 Yr. Note. This trade is currently 11 points against us ($343.75). For those of you who are not risk adverse consider going long the 10 Yr. Note/ short the 30 Yr. Note.
Grains: On Friday Jan. Beans were 18 cents higher at 1130'0, Mar. Corn 4 higher at 583'0 and Mar. Wheat 4 higher at 583'6. Over night Beans were 17 higher, Corn 13 higher and Wheat 9 higher. I am beginning to like the way all the Grains are looking technically and recommend the long side of the market with either futures or out of the money calls for a play into next year.
Cattle: Friday's Cattle on Feed Report showed the following: On Feed 104% of a year ago vs. expectations of 103.7%. Placements 104% vs. average expectation of 99.6%. Marketings 100% vs. expectations of 98.5%. All in all a neutral to negative report because of increased placements. My bias remains negative. That being said if the market trades below the 116.00 level for the Feb. LC contract my bias could turn to the long side of the market.
Silver: Mar. Silver is currently 71 cents lower at 28.95. Feb. Gold is currently 2.00 higher at 1600.00. The metals were all over the map so to speak since last night. Gold opened 5.00+ higher, only to break to the 1585.00 level then rally as high as 1611.50. Treat as a trading market between 1560.00 and 1635.00. I think the "bloom is off the rose" for these two markets and have no long term opinion at this time.
S&P's: Mar. S&P's are currently 6.00 higher at 1217.00.Support is currently 1203.00 and resistance 1228.00. My bias is to the long side of the market.
Currencies: As of this writing the Mar. Euro is trading 10 lower at 1.3027, the Swiss 6 higher at 1.0676, the Yen 6 lower at 1.2864 and the Pound 22 higher at 1.5507. Other than my out of the money put recommendation for the Euro and the Yen I do not see a reason to be involved at the moment.
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