Financials: Sept. Bonds are currently 6 higher at 127'10. This mornings ADP private sector employment report showed an increase in jobs of 16K versus an estimate of 60K. A disappointment, and probably an indication of what Friday's monthly jobs report will show. I am still holding the combination of short Sept. Bonds and short the Sept. Bond 122'00 put. In an effort to once again afford a bit more protection, I am going to recommend once again rolling up in the short 122'00 put to the 124'00 put leaving us short the Bonds and short the Sept. Bond 124'00 put.

Grains: Yesterday Nov. Beans closed 6 lower, Corn 8 cents lower and Wheat 8 lower. Over night Beans were 3 higher, Corn 4 higher and Wheat 4 higher. This mornings Grain Report showed less acreage and less stocks than expected for Corn. The figures were: Corn acreage 87.872 million acres versus expectations of 89.302. Beans: 78.868 million acres versus expectations of 78.292. Corn stocks 4.310 billion bushels versus 4.613. Bean stocks 0.571 billion bushels versus 0.592. The early call is 10-15 cents higher in Corn and 6 cents higher in Beans. I feel the report is very friendly for Corn and that we may have put in a bottom. I will be a buyer on set backs in Dec. Corn and will initially try to be a buyer 5-7 cents higher this morning. We remain long out of the money call spreads in Nov. Beans.

Cattle: Yesterday Live and Feeder Cattle closed sharply lower in response to poor global economic news. This mornings Grain Report should put pressure on the market especially the Feeders. I am still looking to be a buyer in Aug. Live Cattle below 87.50 if the market allows.

Silver: Sept. Silver is currently 8 cents lower 18.53. We continue to hold the combination of long the Dec. Silver 20/22 call spread and short a min-silver futures contract. If the market trades below the 17.90 level I recommend covering the short minisilver futures.

S&P's: Sept. S&P's are currently 5.00 higher at 1040.25. Yesterday we tried the long side of the market only to be stopped out. Near term support is currently 1032.00 and near term resistance 1055.00. I am on the sidelines.

Currencies: As of this writing the Sept. Euro is 52 higher at 1.2266, the Swiss 8 lower at .9257, the Yen 20 lower at 1.1293 and the Pound 83 lower at 1.4997. Yesterday we covered all short biased positions (short futures, short calls, long puts) in the Euro. We also took a short biasedposition in the Yen (short futures, short calls or long puts) above the 1.1250 level (the market yesterday morning was above 1.1300).

Regards,

Marc