Financials: Dec. Bonds are currently 3 higher at 140’05 and the 10 Yr. Note 2 lower at 129’02. The market has rallied more than 2 full points from yesterday’s low on indecision on European debt holding support in the 138’00 area (yesterday’s low was 137’18). Continue to treat as a trading market between 138’00 and 141’15. My bias remains to the short side of the market on rallies above 141’00.
Grains: Yesterday beans closed 1 lower, Corn fractionally lower and Wheat 6 lower. Over night Nov. Beans were 2 cents higher, Corn 1 higher and Wheat 3 higher. We remain long out of the money calls and/or call spreads in Dec. Corn. I have no futures recommendtion at this time. That being said, if the market should break below the 630’0 level I will start looking for buying opportunities.
Cattle: Yesterday Dec. Live Cattle closed 90 lower at 121.97 and Nov. Feeder Cattle closed 100 lower at 141.80. If you remain short Dec. LC either look to take profits or continue to use a protective buy stop at your break even level. If the market trades below 121.05, lower your buy stop to the 121.925 level.
Silver: Dec. Silver is currently 37 higher at 33.43. If you remain long term bullish, consider going long out of the money calls and/or call spreads for March 2012 expiration.
S&P’s: Dec. S&P’s are currently 11.25 higher at 1235.75. This market should remain quite volatile as news leaks out concerning European debt situation. Yesterday’s support of the 1228.00 area is holding at the moment. Resistance remains at 1254.00. We remain short the Dec. 1240.00 call.
Currencies: As of this writing the Dec. Euro is currently 3 higher at 1.3923, the Swiss 25 higher at 1.1424, the Yen 13 higher at 1.3194 and the Pound 10 lower at 1.5996. Given the recent runnup in the Euro I’m inclined to play from the short but caution it could go either way. Support remains at 1.3720 and resistance 1.3960. We remain long out of the money puts in the Dec. Yen.
Regards,
Marc
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