Bonds Higher, S&P's Lower, Silver Lower

Chicago (Nov 18)  Financials: Dec. Bonds are currently 5 higher at 132’22 and the 10 Yr. Notes 4 higher at 126’28.5. Eurodollars are steady to 1 higher depending on the contract moth. We remain short a combination of Eurodollars and near the money puts. At current prices I remain on the sidelines in Bonds and Notes. That being said, my overall bias is to the short side of the market and I will be a seller in the Bonds on rallies to the 134’12 area if the market allows.

Silver: Dec. Silver is currently 9 cents lower at 20.64 and Dec. Gold $6.00 lower at 1281.40. If you remain long Dec. Gold (see “Report” from 11/14) either take profits above the 1288.00 level or continue to use a protective sell stop in the 1273.00 area. We remain long Silver.

S&P500's: Dec. futures are currently 3.00 higher at 1797.00. Treat as a trading market between 1777.50 and 1803.00. The Dow hit 16,000 this morning, will this be resistance?

Currencies: As of this writing the Dec. Euro is currently 35 higher at 1.3525, the Swiss 45 higher at 1.0974, the Yen 25 higher at 1.0004 and the Pound 10 higher at 1.6180. The Dec. Dollar Index is currently 13 lower at 80.77. I will be a buyer in the Yen below the 0.9800 level if the market allows. The low for the year in the Yen was 0.9640 on May 22nd.