Financials: Bonds are currently 6 higher at 142'15 and the 10 Yr. Note 2 higher at 131'31.5. This mornings GDP Report showed growth at 2.2% vs. expectations of 2.6%, a bit disappointing. The immediate reaction was a rally from the 142'16 level to 142'30. Over night the market rallied as high as 143'18 as Italian and Spanish debt ratings were lowered and their yields rose somewhat causing a flight to safety. I remain short the June Bond 142'00/ 140'00 call spread. To be honest I am questioning my negative bias to this market.

Grains: Over night July Corn trade 5'2 higher at 612'6, July Beans 11'4 higher at 1491'6 and July Wheat 4'4 higher at 640'4. It is rumored that China is in the market for Beans. Users of Corn such as livestock producers should be buying for near term needs. Continue to treat July Corn as a trading market between 590'0 and 630'0.

Cattle: June Live Cattle are currently 42 lower at 111.95 and May Feeder Cattle 70 lower at 147.87. An upside reaction the day after the limit down move because of the report of Mad Cow Disease has not held as June LC is once again below the 112.00 level. Technically support for Jun. LC is now 108.00 and support for May FC is now the 145.00 level. The market continues to experience poor demand despite tight supplies.

Silver: July Silver is currently 11 cents higher at 31.39 and June Gold 4.00 higher at 1665.00. These markets may be starting to show somw semblance of support on breaks below 30.00 in Silver and 1630.00 in Gold.

S&P's: June S&P's are currently 3.00 higher at 1400.00 in spite of European debt problems and a poor GNP number. It seems to me that water is running uphill. The resistance area of the mid 1380's has obviously been been penetrated, putting the next level of resistance in a wide range of 1403.00 to recent highs of the 1419.00 area. I am once again looking to the short side of the market as a position trade.

Currencies: As of this writing the June Euro is trading 10 higher at 1.3251, the Swiss
17 higher at 1.1037, the Yen 58 higher at 1.2417 and the Pound 52 higher 1.6245. Strong
overhead resistance in the Euro in the 1.3290 to 1.3330 area.

Regards,
Marc
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