Treasuries to come off of recent lows
|Financials: As of this writing (6:30 am) December Bonds are up 0’9 at 176’19, 10 Yr. Notes up 0′ 01.5 at 139’17.5 and the 5 Yr. Note up 0’00.5 at 126’00.75. Yields are about unchanged with the 2 Yr. Note gaming 1 basis point on the 10 Yr. Note. Testimony by Fed Chairman Powell reiterated that rates will stay near zero through 2023. He also talked of the need for aid (the passage of a stimulus package) to ward off the hardship felt by many unemployed and small businesses in the face of the coved virus. The equity markets did not take this well causing treasuries to come off of recent lows.
Grains: December Corn is 4’6 lower at 363’6, November Beans 12’6 lower at1001’6 and December Wheat down 0’6 at 543’0. Excellent harvest conditions and a strong dollar have both pressured these markets. As I have mentioned many times over the years, keep aware the direction of the dollar and it’s influence as a fundamental in determining prices.
Cattle: October Live Cattle closed 67 points higher at 107.15 and October Feeder Cattle gained 90 points at 141.525. Both choice and select boxed beef prices were 1.30 higher. Demand has picked up somewhat over the last week, that being said, I suspect that cattle ready for market will start being heavier and cause beef inventory to rise . I also feel that the price premium of beef over pork and poultry will come into play all of which keeps me some negative on this market.
Silver is currently down 77 cents at 22.33 and down about $4.50 for the week. I was expecting a break below 24.00 and now put support in 19.50 to 20.50 level.
S&p’s: S&Ps are currently down 2.00 at 3229.00 down 110.00 for the week. A growing number of coved virus cases and deaths and a Fed outlook that points to a slowing economy and a stalling by the congress and senate have pressured these markets. Keep trading from the short side.
Currencies: The Dollar index has now reached reached my target of 94.50 on the December contract an area where I once again will start trading from the short side on Rallies.
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