Financials: Sept. Bonds are currently 23 higher at 136'15. The long 10 Yr. Note/ short Bond spread is now at 9'24 premium the Bonds. To say that I am currently on the wrong side of this market would be an understatement given the current losses. However, I feel that I will be right for the long term. Yesterday a disappointing Existing Home Sales report showed a decline of 27.2% which caused the market to rally to new recent highs. This mornings Durable Goods report came in at +0.3% versus expectations of 2.8%. Durable Goods ex-transportation was down by 3.8%. Tomorrow I will be looking to take some sort of protective action, such as selling an out of the money put against the current position, or consider liquidating and taking the loss.

Grains: Yesterday Nov. Beans closed 6 cents lower, Dec. Corn 12 lower and Dec. Wheat 17 lower. Over night Beans were 2 higher, Corn fractionally higher and Wheat 3 higher. Dec. corn temporarily traded just below support of 416'0 before recovering to the 421'0 level leaving the uptrend in tact. We remain long out of the money calls and/or call spreads in Dec. Corn. Nov. Beans have been flirting with the 1000'0 level the last few sessions. I feel the Beans need to close above the 1020'0 level to resume any kind of upward momentum.

Cattle: Yesterday Live Cattle closed about 30 lower and Feeder Cattle about 70 lower. This morning the market is currently 50 lower in Live Cattle and 30 lower in Feeder's. I feel these markets have a bit more to go on the downside as a result of last Friday's Cattle on Feed Report.

Silver: Sept. Silver is currently 32 higher at 18.70. If you remain long either take profits or roll your position into the Dec. contract and use a protective sell stop at 18.20. We remain long the Dec. 20/22 call spread.

S&P's: Sept. S&P's are currently 5.50 lower ar 1044.25. The market is down as a result of the gov't. reports (see Financial comment) over the last two sessions. I am on the sidelines at current levels. Near term support is currently 1038.00 and resistance 1057.00.

Currencies: As of this writing the Sept. Euro is 10 lower at 1.2662, the Swiss 43 higher at .9742, the Yen 12 lower at 1.1862 and the Pound 16 higher at 1.5454. We remain long the Dec. Yen 1.12 put.

Regards,

Marc