Financials: Dec. Bonds are currently 1’16 higher at 138’29 and the 10 Yr. Notes 18 higher at 130’05. This mornings monthly Jobs Report showed non-farm payrolls unchanged versus expectations of an increase of 80,000 jobs. Disappointing to say the least with the response in the Bond and equitiy markets as expected. Once again the yield on the 10 Yr. Note will be flirting with the 2.0% level. I remain on the sidelines expecting a break at sometime, but currently not willing to “stand in front of a freight train” so to speak by trying to pick a top in these markets.

Grains: Yesterday saw an across the board sell off in the Grains with Beans 23’0 cents lower, Corn 29’0 lower and Wheat 30’4 lower. A report early in the morning (Thursday) showed disappointing export demand for Corn. Over night Beans were 5’0 higher, Corn 4’4 higher and Wheat 8’0 higher. I am looking to reinstate long positions in either futures, calls and/or call spreads in Dec. Corn if it trades below the 735’0 level.

Cattle: Yesterday Oct. Live Cattle closed slightly lower and Oct. Feeder Cattle slightly higher. Both of these markets have reached my dowside (and exceeded) objectives for the moment. I am on the sidelines.

Silver: Dec. Silver is currently 1.34 higher at 42.86 and Dec. Gold 49.00 higher at 1878.00. If you remain long consider taking profits or using a close stops as the market is once again near recent highs. I am on the sidelines.

S&P’s: Sept. S&P’s are currently 22.00 lower at 1179.75. A disappointing Jobs Report has added pressure to what was already a weak market this morning. The market should show a bit of support in the 1172.00 area but I would put longer term support in the 1145-1153.00 level. Resistance is currently the 1198.00-1206.00 level, where I will once again look to trade from the short side of the market.

Currencies: As of this writing the Sept. Euro is currently 45 lower at 1.4223, the Swiss 222 higher at 1.2818, the Yen 4 lower at 1.3015 and the Pound 13 higher at 1.6187. No question the market has been intersted in safe havens as the Swiss has gained sharply against most major currencies in the last 2 days. I will once again be looking to the short side of the Swiss with either futures or out of the money puts if the market once again trades above the 1.30 level. We remain long the Oct. Yen 1.24 put.

Regards,
Marc

Questions? Ask Marc Nemenoff today at 312-264-4310

Free – subscribe to receive Daily Newsletters (9am) via Email (Also in Spanish)