Financials:
Sept. Bonds are currently 15 higher at 118’22, the 10 Yr. Notes 13 higher, the 5 Yr. 8 higher and the 2 Yr. 3 higher. Dec. Eurodollars are 7 higher at 98.210. We remain short the Sept. Bonds and the Dec. Eurodollars which are currently at a loss. This morning’s monthly employment numbers showed a loss of 467,000 non-farm payroll jobs versus expectations of a decline of 350,000. Weekly jobless claims were down 16,000 versus expectations of a decline of 8,000. May payrolls were revised to down 322,000 from down 345,000. My intention is to stay short the market and re-evaluate the positions on Monday when I feel the market will have settled down a bit after the long weekend.
Grains:
Yesterday Beans were 32-34 cents higher, Corn 2 higher and Wheat 5 lower. Over night Beans were 13-17 lower, Corn 5 lower and Wheat 2 lower. We are currently on the sidelines.
Cattle:
Yesterday Live Cattle was 37-60 higher. We are currently on the sidelines but will be looking to be a buyer on a 125 point break on either the Aug. or Oct. contracts. I recommend using a protective sell stop 125 points below entry level if you are filled.
Silver:
Sept. Silver is currently 40 cents lower at 13.34. We remain long I continue to recommend using a protective sell stop at 12.92.
S&P's:
Sept. S&P’s are currently 12.50 lower at 906.00. This morning’s jobs report (see financial comments) put immediate pressure on the market because of the higher than expected decline in non-farm payrolls. At the moment the market is holding near term support in the 906.00 area. Resistance remains in the 926.00. If you went short yesterday at resistance I recommend taking profits and standing aside. If the market trades below 903.00 the next level of support will be the 893.00 area. I recommend standing aside until Monday.
Currencies:
As of this writing the Sept. Euro is 89 lower at 1.4058, the Swiss 73 lower, the Yen 34 higher and the Pound 93 lower at 1.6381. If you remain short the Sept. Bond from above the 1.6600 level, either take profits or lower your protective buy stop to the 164.80 level. The Sept. Dollar Index is currently 44 higher at 80.315.
Regards,
Marc
There is a substantial risk of loss in trading futures and options.
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