Financials: Bonds are currently 6 higher at 114'19. We continue to hold the long Jun. 114'00/short 112'00 put spread. I will continue to use an open order to buy the Jun. 113'00 put/sell the 114'00 put at 34 points premium the 114'00 put. If filled this will leave us long the 113'00/ short the 112'00. There is a 10 Yr. Note auction today which could effect the market later this morning.

Grains: Yesterday Beans closed 8 cents higher, Corn fractionally higher and Wheat 10 cents higher. Over night Beans were 2 lower, Corn 1 lower and Wheat 3 lower. If you remain long May Wheat, raise your protective sell stop to the 443'4 level. If the market trades above the 470'0 level, either take profits or raise your sell stop to the 453'0 level.

Cattle: Yesterday Live Cattle closed moderately lower but rallied late in the afternoon as the cash market firmed up. Both Live Cattle and Feeder Cattle are sharply higher this morning. I continue to urge hedgers to use put options for price protection as opposed to short futures positions.

Silver: May Silver is currently 4 cents higher at 17.97. I am currently on the sidelines. I will be a buyer if the market breaks more than 80 cents in the next week or so.

S&P's: Jun. S&P's are currently 4.00 lower at 1181.75. We remain short a combination of futures and out of the money puts. I will continue to use a protective buy stop at 1192.00.

Currencies: As of this writing the Jun. Euro is 48 lower at 1.3346, the Swiss 33 lower at .9326, the Yen 21 higher at 1.06764 and the Pound 75 lower at 1.5193. I feel the currencies are close to a test of support at the lows made over the last two weeks and prefer the sidelines at the moment. I look for some resistance in the Dollar Index in the 82.10-82.50 area (currently trading at 81.78).

Regards,

Marc