Market awaits decision on Greece. Grains higher, Cattle lower

Financials: Sept. Bonds are currently 18 lower at 149’00, 10 Yr. Notes 5.5 lower at 125’15 and 5 Yr. Notes 3 lower at 118’26. German 10 Yr. Bunds are 13 lower at 150.73. If you remain short either the 5 or 10 Yr. Notes I suggest taking action by doing 1 of the following before the weekend. Take profits, lower your protective buy stop or sell slightly out of the money puts to collect some premium against short positions and in effect lowering risk. The market is still awaiting some sort of outcome from the Greek debt situation. Personally I do not think that just raising taxes and lowering pensions will solve the crisis, this in effect will put too much economic pressure on middle and lower economic classes. What I feel is needed is structural change to the banking system and anti-corruption measures so that implementation of current tax rates is enforced for all economic classes.

Grains: Dec. Corn is currently 6’6 higher at 399’0, Nov. Beans 11’2 higher at 989’0 and Dec. Wheat 17’4 higher 566’0. An old market adage of “rain makes grain” doesn’t account for too much rain. The fear of loss of acreage due to flooding has pushed these markets to new recent highs. I’m taking profits from long Corn going into the weekend.

Cattle: Yesterday Sept. FC closed down the daily 450 point limit and Oct. LC nearly 200 lower at 151.02. If you remain short FC either take profits or lower your stop to 225 points above the market. If you are long puts in FC or LC either take some profits or roll into a lower strike price to take back some premium. If you are short LC lower your protective buy stop.

Silver: Sept. Silver is currently 5 cents lower at 15.79 and Aug. Gold fractionally higher at 1172.50. We remain long Silver.

S&P's: Sept. S&P’s are currently 2.00 higher at 2096.00. Earlier in the week we covered the short put leg of the combination of short futures/short puts leaving us short futures. Now that the market has set back about 20.00 since my last “Report” I will once again hedge my short position by selling the July 2080 put at 20.00 or better.

Currencies: As of this writing the Sept. Euro is trading 1 lower at 1.1213, the Yen 27 lower at 0.8091 and the Pound 6 lower at 1.5718. We have covered all short biased positioned in the Euro and the Pound. If you feel you need a position in the Euro going into the weekend because of the Greek situation, consider buying the July Euro 1.10 put currently trading at 20 points ($250).