Financials: Sept. Bonds are currently 27 higher at 123'16. the market still appears to be in flight to quality mode with the Dollar once again pushing towards it's yearly high and equities markets once again lower. On Friday we will have the June monthly employment report. Support is currently 122'05 and resistance 124'28. To be honest, at this time I do not have a long term strategy and look at the market as a trading affair between support and resistance.

Grains: Over night July Beans were 6 cents lower at 931'0, July Corn 5 lower at 354'0 and July Wheat 6 lower at 452'0. All three of these markets are currently in near term support. As I have mentioned over the last few weeks, the dominating factor affecting the Grain markets has more to do with the value of the dollar and the international debt situation than traditional fundamentals of weather, supply and demand. Given the recent volatility and deleveraging by Commodity Funds and other speculative entities I am still on the sidelines as far as speculative futures positions are concerned. We do however, continue to hold out of the money call spreads in Nov. Beans and remain short the Sept. Corn 340'0/420'0 strangle.

Cattle: Aug. Live Cattle are about 25 higher this morning at 89.50 and Feeder Cattle about 30 lower. We do not have a speculative position at this time. Over the last month I have favored the short side of these markets and feel that ti is time to be leaning towards the buy side of the Live Cattle. I will be looking to go long Aug. Cattle in the 87.50-88.50 area. Producers should continue to hold put options as price insurance and cover any short call positions.

Silver: July Silver is currently 17 cents higher at 18.59. We remain long this market. I do, however, feel this market will need to have consecutive closes above the 18.80 level to indicate further upward momentum. If the market trades above 18.80, either take profits or use a protective sell stop at your break even level.

S&P's: Jun. S&P's are currently 8.00 lower at 1080.50. On Thurs. I had recommended the short side of the market above the 1086.00 level with a close stop. If you went short lower your protective buy stop to your break even level or take profits. Over nigh the market traded as low as 1069.00 on renewed Dollar strength and expectations of some disappointing GDP statistics from China. For the near term treat as a trading market between 1063.00 and 1092.00.

Currencies: As of this writing the Jun. Euro is 108 lower at 1.2217, the Swiss 15 lower at .8633, the Yen 42 lower at 1.0975 and the Pound 158 higher at 1.4646. The Euro overnight traded as low as 1.2112, a new yearly low, before rallying back above the 1.2200 level. I still feel the Pound is a good sale above the 1.4650 area with a protective buy stop above the 1.4830 area.

Regards,

Marc