Euro makes new recent lows as ECB continues quantitative easing.

Financials: Dec. Bonds are currently 20 higher at 137’14, 10 Yr. Notes 8 higher at 124’17 and 5 Yr. Notes 3.5 higher 109’14. Weekly Jobless Claims were 12,000 higher pretty much in line with expectations and Durable Goods Orders down 18.2% vs expectations of a decline of 17.5%. Comments by ECB’s Mario Draghi indicated continued easing pushing rates lower and strengthening the Dollar. This rallied Bonds and Notes which are now at a discount(as determined by price, not % rate) to most European countries in the ECU. We are currently spread long June 2017/short June 2015 Eurodollars iniated at 206 premium the 2015 contract. Take profits below 198.

Grains: Dec. Corn is fractionally higher at 329’6, Nov. Beans fractionally higher at 937’0 and Dec. Wheat 3’6 lower at 476’4. We will be watching exports to see if there is any rally potential to these markets. For the most part, upside potential will be limited by supply and Dollar strength.

Cattle: Oct. LC are currently 22 lower at 155.10. We remain long the Oct. 148 put. WE will need a sharp break over the next 2-3 sessions to turn a profit on this trade given the time restraint. Oct. FC are currently are currently 17 lower at 230.225. We are once again spread long Jan./short Nov. FC at 6.25 premium Nov. and will take a small profit below the 5.90 level.

Silver: Dec. Silver is currently 15 cents lower at 17.55 and Dec. Gold 8.00 lower at 1211.00. We are trying the long side of Gold with a protective sell stop at 1202.00.

S&P's: Dec. S&P’s are currently 6.50 lower at 1985.00. We are sellers on rallies with a stop at 1994.00. We closed out short positions from earlier in the week (see letter from Sept. 23rd).

Currencies: As of this writing the Dec. Euro is currently 55 lower at 1.2732, the Swiss 40 lower at 1.0547, the Yen 17 lower at 0.9154 and the Pound 7 lower at 1.6320. These markets are entering oversold territory.