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Financials: Dec. Bonds are currently 7 higher at 139’03, 10 Yr. Notes 5.5 higher at 118’29.5 and 5 Yr. Notes 3.5 higher at 12’20.75. Of late we have been more interested in yield curve spreads than outright positions, this week is no different. My preferred spread to participate in is the difference in yield between the 30 Yr. Bond and the 10 Yr. Note. The spread in yield is currently 24 basis points in favor of the Bonds over the 10 Yr. The range since last week has been 18-27 points. I feel this spread will once again widen and will sell-3 Bonds/buy 5-10 Yr. Notes on any slight rallies from current levels in the Bonds. Next week we will be looking into opportunities in Eurodollar outright and spreads.
Grains: Dec. Corn is currently 2’2 higher at 369’2, Jan Beans 9’2 higher and Dec. Wheat 5’2 higher at 508’2. We are currently on the sidelines but look to be a seller on any substantial rally, Dec. Corn above 384’0 and Jan. Beans above 924’0.
Cattle: Last Week I recommended going long Dec. LC below 114.00. This market gave an opportunity trading as low as 113.80. If you went long either take the short-term profit or use a protective stop at 114.325. At this early hour the LCZ is 114.85 both bid and offered. If the market trades above 115.20 raise your stop to 114.775.
Silver: Dec. Silver is currently 3 cent higher at 14.11, down 42 cents for the week. We were initially stopped out of a long position at 1413.00 and re-entered the market below 14.00.
S&P’s: Dec. S&P are currently unchanged at 2698.50 down 108.00 for the week. If you went long puts and/or put spreads on last week’s recommendation either take profits or roll your position(s) into lower strike prices.
Currencies: As of this writing the Dec. Euro is currently 35 lower at 1.130-4, the Yen 8.5 higher 0.88410, the Pound 241 lower at 1.2809 and the Dollar Index 38.6 higher at 97.045. This morning Brexit Secretary Raabe resigned putting pressure on Prime Minister May and her Government to come up with a more workable Brexit solution for exiting the EU. There has been much criticism from EU partners to either “stay or get off the pot” so to speak. I’m going to on the sidelines in the pound but look to go long the Yen and/or short the Dollar Index.