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Financials: Dec. Bonds are currently 6 higher at 140’23, 10 Yr. Notes 3.5 higher at 118’27 and 5 Yr. Notes 1.7 higher at 112’16. Yesterday the FOMC raised rates by 25 basis points putting the Discount Rate at 2.75% and the Fed Funds Rate at 2.25%. As proof that the market had priced the rate hike in the yield on the 10 Yr. Note dropped from 3.10% to 3.04% and a drop on the 30Yr. Bond from 3.23% to 3.16%. In their notes and later comments the FOMC seemed to indicate the probability of another rate hike this year. I will be looking to go short treasuries once again should the Bonds trade above 142’05.
Grains: Dec. Corn is currently 1’0 lower at 362’0, Nov. Beans fractionally lower at 849’6 and Dec. Wheat 3’4 lower at 514’0. If you remain long Dec. Corn from below 352’0 either take profits or raise your protective sell stop to the 356’0 level.
Cattle: Both Feeder and Live Cattle continued to trend higher amid strong demand as consumer confidence numbers indicated that the average consumer is willing to indulge in premium items such as beef instead of chicken or pork. We were stopped out of a short position in Dec. LC when the market traded above 118.75.
Silver: Dec. Silver is currently unchanged at 14.405 for the day and up about 7 cents over the last week. I remain long with a protective sell stop at 14.03.
S&P’s: Dec. S&P’s are currently 2.50 higher at 2914.00. I am on the sidelines.
Currencies: As of this writing the Dec. Euro is currently 54 lower at 1.17825, the Yen 6 lower at 0.89105, the Pound 31 lower at 1.3200 and the Dollar Index 37.7 higher at 94.14. As mentioned last week my 1.3300 upside objective in the Pound had been met. If you remained long I want to note that my 1.3170 recommended sell stop was hit. I am now on the sidelines.