Financials:

Bonds are currently 21 higher at 117’14 and the 10 Yr. Notes 15 higher at 116’08. The market penetrated near term resistance overnight of 116’30 and is approaching longer term resistance of 118’06. I currently like the short side of the market at present levels and will use a protective buy stop at 118’21. If the market trades below 116’30 I recommend lowering buys to the 117’24 level. I will also be looking to be spread long the 10 Yr. Notes/ short Bonds if the Bonds trade at 1’20 over the 10 Yr. Notes (the spread is currently at 1’07 premium the Bonds).

Grains:

Yesterday Beans were 10 higher, Corn 17 higher and Wheat 14 higher. Overnight Beans were up slightly, Corn up 8 and Wheat 16 higher. Argentinean strike news continues to dominate the Beans. This mornings USDA report was termed friendly for Beans and neutral to slightly negative for Corn and Wheat. The early call is 20+ higher for Beans, 5 higher for Corn and steady to 5 higher for Wheat. We are currently on the sidelines in the Grains.

Cattle:

Yesterday Live Cattle closed 140-185 higher depending on the contract month. We were stopped out of our short position when the market traded 200 points above our entry level. Technically this market looks poised to trade at higher prices. I have to admit that being a trader in Live Cattle for over 30 years has made me too cautious to be long at record prices for this time of year possibly skewing my perception of where prices could be going for the near term. I will be on the sidelines for the next few sessions as to be able to get a fresh perspective.

Silver:

July silver is currently 6 cents higher at 16.93. Over night the market traded as high as 17.13. A close today above 17.03 would be considered friendly. I remain on the sidelines. Once we get a couple closes above 17.03 I will look once again for buying opportunities.

S&P's:

S&P’s are currently 6.50 lower at 1385.50. We remain short this market. I recommend either taking profits or lowering your protective buy stop to the 1405 level. If the market trades below 1380 the next support level will be the 1372 level. If this occurs lower your stop to the 1397 level.

Currencies:

As of this writing the euro is 31 higher, the Swiss 68 higher, the Yen 86 higher and the Pound 46 lower. The Dollar Index is 28 lower at 73.38. I will go long the June Dollar Index below the 72.98 level. I will go short the Euro above 1.5600 and the Pound above 1.9740.