Will the Fed wait until 2016 to raise rates?

Financials: Dec. Bonds are currently 11 higher at 157’19, 0 Yr. Notes 5.5 higher aqt 129’00 and 5 Yr. Notes 2.5 higher at 120’23.7. Last Friday’s Employment Report, showing the creation of 142,000 non-farm payrolls vs. expectations ofr 201,000 temporarily roiled the markets rallying the Bonds to above 160’16 before backing off to present levels. Conventional wisdom now seems to be that the Fed will wait until next year before raising rates. I’m not so sure as the language in the last couple of releases of FOMC minutes seems to suggest that the Fed wants to “lift off” of nearly zero rates. I remain spread long June 2016/short June 2017 Eurodollars currently at 56 points premium the June 2016, roughly 6 points ($150) against us. I am alos once again willing to trade the Bonds from the short sie on rallies above the 159’18 level. Also, the 10 Yr. German Bund is back on my radar and I will go short above the 157.50 level.

Grains: Dec. Corn is currently 1’2 lower at 392’2, Nov. Beans 4’0 lower at 880’0 and Dec. Wheat 1’6 lower at 513’6. If you remain long Dec. Corn either take profits or raise your protective sell stop to the 382’2 level.

Cattle: Live and Feeder Cattle once again closed sharply lower giving up early gains but still above recent lows. I suspect that these markets may be trying to put in a bottom as the lead month October contract nears long term support in the 118.30 area, a level last seen the week of June 28th 2013. For those of you keeping track, I’m still short the Dec. LC 135.00/145.00 strangle and currently taking 300 points of pain on this position. For a short term trade I will try the long side of Dec. LC when and if the Oct. contract trades below 119.85. I am also looking for a bottom in the Oct./Dec. spread.

Silver: Dec. Silver is currently unchanged at 15.70 cand Dec. Gold 1.50 higher at 1139.00. These metals have been one of my7 few bright spotsw position wise over the last week as Silver traded through resistance in the 15.43 area. If you are long multiple contracts consider looking for a profit taking opportuniy on part of your position.

S&P's: Dec. S&P’s are currently 5.75 lower at 1969.00. Needless to say this market has rallied significantly sine Friday’s Jobs Report. As I have mentionede over the last fewc weeks I may have gone to the well one time to many on the short side and am now carrying a short position from well below current prices.Support is currently 1935.00 and resistance 1992.00. Treat as a trading affair.

Currencies: As of this writing the Dec. Euro is 50 higher at 1.1242, the Yen 9.5 higher at 0.83710 and the Pound 18 higher at 1.5166. I will treat the Euro as a trading affair between 1.1050 and 1.1450. I will also be trading the long Euro/short Pound spread on setbacks of 125 points as a trading vehicle.