Financials: Dec. Bonds are currently 20 higher at 134'23. The long 10 Yr. Note/ short Bond spread is currently at 9'02 premium the Bonds. This puts the current loss on the spread from the initial trade in the Sept. contract at about $2500. At this point I will be glad to limit the losses and give it another day or so to see if the Bonds retreat. The Bonds and the spread have now gained back everything they lost last Friday, forming a possible double top.

Grains: Yesterday Nov. beans closed 3 lower at 1022'4, Dec. Corn 5 higher at 441'4 and Dec. Wheat 9 higher at 704'4. Over night Beans were 9 lower, Corn about 3 lower and Wheat fractionally higher. The Nov. Beans are once again below the 1020'0 level giving me a bit of concern that this market is losing some upside momentum. If you remain long Dec. Corn either take profits or continue to use a protective sell stop at 431'4. We remain long call spreads in Dec. Corn.

Cattle: Yesterday Live Cattle closed slightly lower and Feeder Cattle 60-100 lower depending on the contract month. I suspect that these markets, especially the Feeders will start to see some support 100 points below the market as the upside momentum in Feed Grains seems to be ebbing, at least for a day or two. If you are short Feeders or Live Cattle as a hedge, start looking for an opportunity to cover some of your futures and look to buy some out of the money puts.

Silver: Dec. Silver is currently 19 cents higher at 19.27. The next level of resistance for this market is the 19.40 area. If you remain long futures either take profits or raise your sell stop to the 18.50 level. We remain long the Dec. 20/22 call spread.

S&P's: Dec. S&P's are currently 1.00 lower at 1044.00. Once again the market has covered the gamut of support at 1038.00 and resistance at 1067.00. Treat as a sideways market between support and resistance.

Currencies: As of this writing the Sept. Euro is 57 higher at 1.2724, the Swiss 88 higher at .9835, the Yen 54 higher at 1.1863 and the Pound 80 lower at 1.5384. We remain long the Dec. Yen 1.1200 put.

Regards,

Marc