Bonds are currently unchanged at 154'24

Marc Nemenoff PRICE Futures Group

Financials: Sept. Bonds are currently unchanged at 154'24, 10 Yr. Notes0'015 higher at 127'13.0 and 5 Yr. Notes0'01.75 higher at 127'24.5. The Dec.19/Dec.20 Eurodollar spread is currently at 36 points premium the Dec.20 contract. All things considered, not much change from last week. Perception now affords a possibility of a 50 basis point rate cut by the pundits who see impending weakness. I still feel that a 0.25% is pretty much in the market and remain short the 5 Yr. Note and still holding the aforementioned Eurodollar spread. The wild card is China whose economy has been slowing for some time and has shown the least amount of growth in 20+ years. They are also slowing their purchasing of U.S. debt instruments.

Grains: Dec. Corn is currently 8'2 lower at 433'2, Nov. Beans 5'6 lower at 895'2 and Dec. Wheat 6'2 lower at 511'0. Is the Bull dead in Corn? I don't think so, but I do have lowered expectations. I will be a buyer in Dec. Corn in the 415'0-430'0 area.

Cattle: Live and Feeder Cattle have declined over the past few sessions, due mainly to expensive feed. Now that Corn has broken 30+ cents since Sunday evening I feel prices will improve. My objective of 110.00 for Oct. LC was reached last week. I'm a buyer below 107.25.

Silver: Sept. Silver is currently 19 cents higher at 16.165. we are staying long and raising protective stops to 15.170.

S&P's: Sept. S&P's are 1.00 lower at 2984.00. Treat as a trading affair between 2962.00 and 3003.00, down from last week's range of 2977-3008.

Currencies: As of this writing the Sept. Euro is 8 lower at 1.12690, the Yen18 higher at 0.93115, the Pound 48 higher at1.2521 and the Dollar Index 0.028 lower at 96.825. We remain short the D.I. from 96.50 with a 150 point initial stop. Should the market trade below 96.25, lower your stop to 97.25

Author

Marc Nemenoff

PRICE Futures Group

Mr. Nemenoff is a 37-year veteran of the futures industry.

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