Financials:

Bonds are currently 8 lower at 115’27 and the 10 Yr. Notes 3.5 lower at 114’03.5. The Unemployment Report this morning showed a decline of 62,000 non-farm payroll jobs, right in line with expectations. The ECB (European Central Bank) raised rates 25 basis points to 4.25% as expected. Support remains at 114’08 and resistance at 116’16. I am on the sidelines until next week.

Grains:

Yesterday Beans were 16-20 higher, Corn 28 higher and Wheat 15 higher. Over night Beans were 12-17 lower, Corn down 8 and Wheat down 3. Yesterday the Corn rallied on renewed prediction of unseasonably hot weather. We remain long Dec. Wheat with a protective sell stop 60 cents below our entry level. If the market trades above 920’0 either take profits or raise your protective sell stop to the 850’0 level. For those of you in the combination of put and call in Dec. Corn we were able to sell the 560-580 call spread yesterday at 17’4. This leaves us long the 680-660 put spread, short the 750 call and short the 600 put.

Cattle:

Yesterday Live Cattle closed 65-100 higher and Feeder Cattle slightly lower. We remain on the sidelines.

Silver:

Silver is currently 26 lower with Sept. contract at 18.15. Over night the market hit resistance at 18.53. Take profits on rallies and look to reinstate on a 50 cent break.

S&P's:

S&P’s are currently 10.00 higher at 1272.50. The 1260.00 area of support continues to hold. I recommend staying on the sidelines until next week.

Currencies:

As of this writing the Euro is 120 lower, the Swiss 82 lower, the Yen 64 lower and the Pound 108 lower. The Dollar Index is currently up 50 points at 72.83. We remain short the Swiss with a protective sell stop at the 99.10 level. We also remain long the Dollar Index. The ECB has raised rates by 25 basis points to 4.25%. This may be a case of buy the rumor sell the fact. Look for a possible key reversal in the Euro. We remain short the Swiss with a protective buy stop at 99.10. We also remain long the Dollar Index.