Financials: Dec. Bonds are currently 20 higher at 137’2, 10 Yr. Notes 10 higher at 118’02 and 5 Yr. Notes up 5.5 at 112’06.Last week we flew in the face of conventional wisdom and went long treasuries with a 15 point stop speculating there would be a flight to quality. To be honest we were stopped out of the Bonds but were able to hold onto the 5&10 Yr. Notes. If you remain long Bonds raise your stop to 137’13. If you are long notes raise your stop to 2 ticks above your break even point.
Grains: Dec. Corn is currently 1’6 lower at 361’0, Nov. Beans 4’o lower at 848’2 and Dec. Wheat fractionally lower at 510’0. Harvest continues at a good pace although somewhat expectantly hampered by rains. I am currently on the sidelines coming into today’s Grain Report. I will be a seller in Dec. Corn above 372’ and a buyer in Nov. Beans below 825’0.
Cattle: Live and Feeder Cattle are lower for the week closing on recent lows yesterday with 100+ losses. Last week I recommended going long Oct./short Dec. or Feb. LC spreads. These spreads worked for 3 straight days only to give back 50-60% of profits on yesterday’s close. We are going to hold this position for the moment.
Silver: Silver is up 12 cents overnight, but, 24 cents lower for the week at 14.44. I remain long with a stop at 14.13.
S&P’s: Dec. S&P’s are currently 11.00 lower at 2770.00. Yesterday’s rout, 95.00 lower, was based on fears of a global slowdown. Before I get unrealistically bearish ‘m going to wait for some earnings announcement. Support is the overnight low of 2747.00 and resistance 2616.00.
Currencies: As of this writing the Dec. Euro is currently 56.5 higher at 1.l1630, the Yen 24.5 higher at 0.89495, the Pound 44 higher at 1.3282 and the Dollar Index. I will be a buyer in the Pound on a break below 1.29, a seller of the Dollar Index above 96.20 andan observer in the Yen which may be ready to move higher.