Bonds are currently 29 lower at 157'00

Financials: Dec. Bonds are currently 29 lower at 157’00, 10 Yr. Notes 11 lower at 128’15 and 5 Yr. Notes 5 lower at 120’12.5. The ADP private sector non-farm payroll report showed an increase of 200,000 jobs, right in line with expectations. A global “bounce” off of recent lows in equities has provided a bit of downward pressure on equities this morning. That being said for the moment the continued rout in commodity prices and lack of inflation keeps this market in “risk off” mode. We still believe there will be a rate hike sometime in the 4th quarter 2015-1st quarter 2016 and continue to hold the long June 2016/short June 2017 Eurodollar spread originally initiated at 62 points premium the june 2015 contract. The spread is currently trading at 56 points resulting in a loss of $150 per unit.

Grains: Dec. Corn is currently 1’2 higher at 390’2, Nov. Beans 3’0 higher at 390’2 and Dec. Wheat 2’2 higher at 506’0. We remain long Dec. Corn and recommend either taking profits or continue to use a protective stop at 374’0. There is a crop report at 11:00am Chicago time which could cause a dramatic swing in prices.

Cattle: Both Live and Feeder Cattle closed down the daily limit yesterday as cash prices continued to fall. I feel we are near a bottom but not willing t6o try to catch this “falling knife”. That being said we are still short the Dec. LC 135/145 strangle initiated at 420 points and currently trading at 600, 180 points against us. At this time the market looks moderately lower.

Silver: Dec. Silver is currently 2 cents lower at 14.55 and Dec. Gold 9.50 lower at 1117.50. We are still long a small position in Silver.

S&P's: Dec. S&P’s are currently 21.50 higher at 1896.00. As mentioned in the last few “Reports” I am willing to trade from the long sidfe on breaks below t6he 1890.00 level. Yesterday this market provided such opportunity trading as low as 1861.00. If you bought yesterday’s break, take profits. I am now adjustingt my peramaters and will be a buyer below 1874.00 and/or a short seller above 1904.00.

Currencies: As of this writing the Dec. Euro is currently 59 lower at 1.1213, the Yen 28 lower at 0.8336 and the Pound 9 higher at 1.5161. As mentioned last week I am watching the long Euro/short Pound spread. While the Pound is gaining this morning it has lost about 400 points over the 6 sessions. At the moment I am on the sidelines.