Financials: June Bonds are currently 10 higher at 116'23. Yesterday's near term support of 116'06 has held (the low was 116'07). If you remain short the Bonds or short the combination of Bonds and the 115'00 put either take profits or lower your protective buy stop to the 117'14 level. If you are stopped out of your short position cover the short June 115'00 put.

Grains: Yesterday May beans closed 5 cents higher, Corn fractionally lower and Wheat 1 higher. Over night beans were 6 cents lower, Corn 3 lower and Wheat 4 lower. I am still looking to the long side of the Beans under the 935'0 level and the long side of May Corn under the 368'0 level. The May Beans 880'0/1000'0 strangle closed at 20'4. IF you remain short this strangle I recommend covering the position at 19'0 if the market allows.

Cattle: Yesterday Apr. Cattle closed 125 higher at 94.20 and June 70 higher at 92.27. Open interest declined 11,200+ contracts in Apr. and gained 5800 in June and 3400+ in Aug. Overall open interest gained 61 contracts. The reason I have been quoting these open interest figures is that the Cattle is at record levels of open interest and I am trying to gauge when the market is over bought after the recent run up in price. As the market approaches the mid 90's I suggest that hedgers start looking at out of the money puts for price insurance.

Silver: May Silver is currently 31 cents lower at 16.95. I continue to recommend that those of you who are holding long futures positions to take partial profits. We remain long out of the money call spreads on the July contract.

S&P's: June S&P's are currently 3.50 lower at 1129.00. I feel that the market has come close enough to the mid January highs with out penetrating them (1143.00 area on the June contract) to warrant a look at the short side of the market once again. If you chose to go short I recommend using a protective buy stop at 1150.00 for protection. We remain long out of the money puts.

Currencies: As of this writing the June Euro is trading 88 lower at 1.3544, the Swiss 54 lower at .9270, the Yen 58 higher at 1.1135 and the Pound 110 lower at 1.4955. Yesterday we rolled the long June Yen 1.0700 puts into the 1.0600 put at 25 points premium the 1.0700. This should leave you either long the 1.0600 put or long the 1.0600/1.0200 put spread. The June Dollar Index is currently 31 higher at 81.05. Resistance on the dollar is currently 81.66.

Regards,

Marc