Financials: Dec. Bonds are currently 8 lower at 141’02 and the 10 Yr. Notes 5 lower at 130’05. The market continues to fluctuate depending on interpretations of events in Europe, particularly the political situations in Italy and Greece. As mentioned Wed., the Italian 10 Yr. Note was trading in excess of 7.0% and is now trading in the area of 6.5%. If you went short the Bonds in the 142’26 area (Wednesday’s recommendation), take the profit and stand aside.
Grains: Yesterday Jan. Beans closed 18 cents lower at 1167’4. Dec. Corn 10’4 lower at 645’4 and Dec. Wheat 23 lower at 620’0. Over night Beans were 4 higher, Corn 1 higher and Wheat 1 lower. To be honest, my bias has now turned neutral based on the technicals. Fundamentally, Wed. crop report should have produced a firmer market in Corn. I recommend liquidating any remaining out of the money calls and/or call spreads for Dec. Corn which expire Nov. 25th.
Cattle: Yesterday Dec. Cattle closed 100 lower at 121.60 and Jan. Feeder Cattle 32 higher at 145.675. My bias remains negative to Dec. cattle at current levels.
Silver: Dec. silver is currently 12 cents lower at 33.99. If you remain long term bullish I recommend being long out of the money calls and/or call spreads for March 2012 expiration.
S&P’s: Dec. S&P’s are currently 12.50 higher at 1250.00. On Wed. we covered recent short positions from the 1265.00 level putting us on the sidelines at the moment. Near term support is currently 1227.00 and near term resistance 1254.00. I will once again be looking to go short the Dec. 1280 call above 32.00 if the market allows.
Currencies: As of this writing the Dec. Euro is 81 higher at 1.3663, the Swiss 36 higher at 1.1060, the Yen 46 higher at 1.2932 and the Pound 46 higher at 1.5946. We remain on the sidelines in futures. We continue to hold the Dec. Yen 1.2400 put.
Regards,
Marc
Questions Ask Marc Nemenoff today at 312-264-4310
