Equities rally, NQ on new highs. Corn holds gains, wheat breaks

Financials: Sept. Bonds are currently 12 lower at 140’21, 10 Yr. Notes 6.5 lower at 126’14.0 and 5 Yr. Notes 3.2 lower at 119’28.2. I am still spread long 10 Yr. Notes/short Bonds and have overstayed my welcome (and position) as the market decidedly traded higher on Friday. I am looking to exit this position on a sharp break in the Bonds. I am still watching the long June 2015/short June 2017 Eurodollar futures spread willing to enter this position at 182 or less premium the June 2015 (currently at 185.5).

Grains: Dec. Corn is currently 2’6 higher at 379’6, Nov. Beans fractionally lower at 1051’6 and Dec. Wheat 6’4 lower at 557’0. I am on the sidelines looking for a break to go long Corn.

Cattle: The early calls this morning are steady for Oct. LC and 25-50 higher for Oct. FC. I feel that these markets will now fall into a trading range now that the excessive prices of the past few months have been tempered by the break of the last few weeks. I am a buyer in Oct. LC on a break below 145.00 and a seller on rallies above 150.00.

Silver: Sept. Silver is curretly 5 cents higher at 19.57 and Dec. Gold 8.00 lower at 1298.00. We continue to hold a small long term long position in Silver. Of note: Gold has been stronger on this current break in precious metal contrary to the way these two metals have been acting most of the year. Keep your positions small at this time.

S&P's: Sept. S&P’s are currently 9.00 higher at 1961.25 as the market recovers from recent setbacks as global tensions eased somewhat. We continue to hold a combination of short futures and short the Sept. 1900 put.

Currencies: As of this writing the Sept. Euro is 17 lower at 1.3383, the Swiss 28 lower at 1.1053, the Yen 21 lower at 0.9753 and the Pound 34 higher at 1.6727. We remain short the Euro with a buy stop at 1.3492. If the Euro trades below 1.3345 lower your stop by 20 points. Of note: The Pound may be poised for a rally.