Financials: Dec. Bonds are currently 6 lower at 139’30 and the 10 Yr. Note 3 lower at 130’08. I still remain on the sidelines. My only recommendation would be to purchase out of the money puts if you think 30 Yr. and 10 Yr. yields are too low.
Grains: Yesterday Beans closed 2 cents lower, Corn 14 lower and Wheat 13 lower. Over night Beans were 6 cents higher, Corn 2 higher and Wheat about unchanged. Yesterday Dec. corn held support just below the 735’0 level. I will be willing to buy the Dec. Corn 800’0/830’0 call spread at 6 cents if the market allows. Early average estimates for Monday’s Grain Report.: Corn production 12.554 billion bushels with a yield of 149.2 bushels per acre. Soybean production 3.032 billion bushels with a yield of 41.1 bushels per acre.
Cattle: Yesterday Oct. Live Cattle closed 117 higher at 118.82. This morning the market is trading 27 higher at 119.10. As I have mentioned for the last few sessions, I am looking to the short side of this market once again above the 119.00 level. Resistance is currently the 119.00 to 121.50 area.
Silver: Dec. silver is currently 93 cents lower at 41.60. I remain on the sidelines. I will once again look to the long side of the market below the 39.00 level if the market allows.
S&P’s: Sept. S&P’s are currently 12.00 lower at 1173.50. We remain short this market. Either take profits or low your protective buy stop to the 1187.00 level. As of today the Dec. contract will be considered lead month and carries about a 5.00 discount to the Sept. The Sept. contract expires in a week.
Currencies: As of this writing the Sept. Euro is trading 140 lower at 1.3748, the Swiss 104 lower at 1.1331, the Yen 58 lower at 1.2865 and the Pound 65 lower at 1.5900. If you bought puts or sold futures in the Euro over the last two sessions, take some profits. We remain long out of the money puts in the Yen. On Monday the Dec. contract will be considered lead month.
Regards,
Marc
Questions? Ask Marc Nemenoff today at 312-264-4310
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