Financials: Sept. Bonds are currently 13 lower at 138’20 and the 10 Yr. Note 6 lower at 130’05. The Durable Goods Report this morning came out better than expected at up 4.0% versus an average expectation of up 2.0%. Last months figure also had an upward revision to -1.3% from -1.9%. I still like the idea of being long out of the money puts and/or put spreads in either Oct. of Dec. Bonds with a strike price of 134’00 or lower. I still feel that futures for the most part are only appropriate for short term trades at this time because of the volatility and the risk of what Fed Chairman Bernanke might say later in the week from Jackson Hole.
Grains: Yesterday Nov. Beans closed 12 cents higher, Dec. Corn 9 higher and Dec. Wheat 18 higher. Over night Beans were 2 lower, Corn 1 lower and Wheat 4 lower. I am inclined to take profits on all futures and call options in Dec. Corn and stand aside for a few sessions.
Cattle: Yesterday Oct. Live Cattle closed 65 lower at 115.05 and Oct. Feeder Cattle 22 lower at 134.35. If you remain short Oct. LC either take profits or lower your protective buy stop to the 116.25 level. If you remain short Oct. FC either take profits or lower your protective buy stop to the 135.10 level.
Silver: Sept. Silver is currently 94 lower at 41.35. If you remain long watch this market carefully as it has had a nearly 3.00 setback over the last 3 sessions from a high of 44.27. Long term support is presently the 38.00-39.00 level. If being long Silver is part of your strategic portfolio, roll positions into the Dec. contract over the next few sessions. Dec. Gold is currently 22.00 lower at 1839.00. Yesterday’s action produced a possible key reversal and is now 80.00 off of yesterday’s high of 1917.90. Near term support is currently the 1750.00 area.
S&P’s: Sept. S&P’s are currently 1.00 lower at 1157.50, well off the over night low of 1142.50. This mornings durable goods report rallied the market from the 1149.00 level to the 1158.00 area. If you have been a buyer on breaks over the last couple of sessions either take profits or use a protective sell stop at 1139.00. Near term support is currently 1142.00 with resistance at 1163.00. Longer term resistance is the 1180.00 area.
Currencies: As of this writing the Sept. Euro is 22 higher at 1.4442, the Swiss 23 higher at 1.2685, the Yen 33 higher at 1.3039 and the Pound 59 lower at 1.6438. I remain on the sidelines. I am watching the Yen to see if there will be an intervention in favor of the Euro and/or the Dollar if it goes much higher
Regards,
Marc
Questions? Ask Marc Nemenoff today at 312-264-4310
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