Financials: Sept. Bonds are currently 5 higher at 133’20 and the 10 Yr. Notes 1 higher at 125’16.0. The market awaits the release of the Fed minutes later today, usually around 1:15. I am currently on the sidelines awaiting a selling opportunity should the market rally to the 136’00 level.
Grains: Dec. Corn is currently 1’4 lower at 520’2, Nov. Beans 3’0 higher at 1279’2 and Dec. Wheat 0’4 lower at 689’6. Yesterday the Grains rallied sharply as private weather forecasters predicted a “heat dome” in growing areas and possibly detrimental weather caused by tropical storms. If you remain long Dec. corn either take profits or raise your protective sell stop to the 503’0 area. If the overnight high of 527’4 is surpassed raise your sell stop to the 512’0 level. Crop Production and Supply/Demand Report tomorrow at 11:00am central time.
Cattle: Aug. Live Cattle on currently 15 lower at 122.57. Aug. Feeder Cattle are currently 77 lower at 150.37 and the Oct. contract 90 lower at 154.50. We remain short the Oct. Feeders and will lower our protective buy stop to the 156.85 area. My initial downside objective is the 152.35 area. If the market trades below the 153.50 level, lower your buy stop to your break even level. Silver: Sept. Silver is currently 8 cents higher at 19.21 and Aug. Gold 7 Dollars higher at 1253.00. Trends remain down. I am on the sidelines.
S&P's: Sept. S&P’s are currently 1.00 lower at 1644.50. The market may have finally found some resistance in the 1649.00 area consistent with the highs made on June 18th and 19th before the market broke to recent lows. Near term support is now the 1626.00 area.
Currencies: As of this writing the Sept. Euro is trading 33 higher at 1.2833, the Swiss 23 higher at 1.0311, the Yen 66 higher at 9978 and the Pound 25 higher at 1.4888. The Sept. Dollar Index is currently 28 lower at 84.50. We remain short the Dollar Index with a protective buy stop at 85.50. If the Dollar Index trades below the 84.10 level, lower your buy stop to the 84.80 level or cover the position. I will be looking to the long side of the Yen below the 98.00 level if the market allows.