Financials:

Dec. Bonds are currently 19.5 higher at 119’22.0 and the 10 Yr. Notes 10.5 higher 117’08.5. This mornings Employment Report was a disappointment to say the least. The unemployment rate took a jump of 0.4% to 6.1%. Non-farm payroll jobs declined by 84,000 versus a pre-report estimate of a decrease of 75,000. I am still interested in being spread long 10Yr. Notes/ short Bonds at 2’12 premium the Bonds. The spread is currently at 2’13.5. I suspect we will establish resistance at this morning’s high for Dec. Bonds at 120’08 and recommend short term traders to be trading the short side of the market.

Grains:

Yesterday Beans were 16 lower, Corn 2 higher and Wheat 2 higher. Over night Beans were 37 lower, Corn 14 lower and Wheat 26 lower. Support of 1230’0 in Nov. Beans was penetrated overnight as the market made a low 1197’6. The next level of support is the 1175 area which is near the lows made in early August. Dec. Corn is currently in support just below the 553’0 level. I am looking to the long side of the market but only willing to risk 10-12 cents in Dec. Corn.

Cattle:

Yesterday Live Cattle was 27 lower to 27 higher depending on the contract month. Over night the market was about 50 lower. As mentioned yesterday we are currently on the sidelines waiting for the market to start showing some signs of support before going long.

Silver:

Dec. Silver is currently 6 cents higher at 12.00. The market is still not showing signs of strength but is at least providing trading opportunities from the long side on breaks to the 12.60 to 12.80 area. If you go long I recommend risking only 50 cents.

S&P's:

S&P’s are currently 6.00 lower at 1230.00 level. Yesterday support of 1264 was handily penetrated. We tried the long side of the market5 and took the recommended 7.50 loss. I am on the sidelines and suspect we could see further breaks. Support is now 1203.00 and resistance 1254.00.

Currencies: As of this writing the Euro is 4 higher, the Swiss unchanged, the Yen 26 higher and the Pound 50 higher at 1.7723. We remain long the Pound and I am a bit more encouraged this morning that we will be able to recover some of the recent loss.