Financials: Dec. Bonds are currently 1’11 higher at 138’07and 10 Yr. Notes 21 higher at 128’24. Events over night such as intervention by the Japanese in favor of the Dollar and a lower Euro, Equities and precious metals has once again created an atmosphere in Bonds of a safe haven. Support is now 136’00 and resistance 139’00.
Grains: On Friday Beans closed 18 cents lower, Corn 3 higher and Wheat fractionally higher. Over night Beans were 10 lower, Corn 7 lower and Wheat 6 lower. Fluctuation in the dollar is one again dominating these markets. This mornings sterngth in the Dollar has pushed prices lower. Higher dollar can equate to lower export demand. We remain long out of the money calls in Dec. Corn. Support is just below the 630’0 level for Dec. Corn, an area where I will be willing to look to the long side of the market.
Cattle: On Friday Dec. Live Cattle closed 85 lower at 119.05 and Nov. Feeder Cattle 57 lower at 141.00. If you remain short Dec. LC either take profits or lower your buy stop to the 120.70 level.
Silver: Dec. Silver is currently 1.10 lower at at 34.16. If you remain long term bullish consider going long out of the money calls and/or call spreads for March 2012 liquidation.
S&P’s: Dec. S&P’s are currently 18.00 lower at 1263.00. We remain short the Dec. S&P 1240 put. Support is currently 1254.00 and resistance is now 1284.00.
Currencies: As of this writing the Dec. Euro is currently 170 lower at 1.3978, the Swiss 118 lower at 1.1492, the Yen 380 lower at 1.280 and the Pound 78 lower at 1.6030. Intervention by the Japanese in favor of the Dollar against the Yen seems to of rallied the Dollar against most other currencies as the Dollar once again seems like a safe haven. We remain long the Dec. Yen 124.00 put which is now at a profit.
Regards,
Marc
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