Financials: Dec. Bonds are currently 2 higher at 141'14 and the 10 Yr. Note 2 higher at 130'17. The markets await the result of the FOMC. It is expected that there will be stimulus package of sorts involving the sale of short term instruments and the purchase of longer term instruments in an effort to keep rates low enough to stimulate business borrowings. I remain on the sidelines.

Grains: Yesterday Beans closed 2 cents higher, Corn 2 lower and Wheat a penny higher. Over night Beans were 1 higher, Corn 2 higher and Wheat fractionally higher. We remain long out of the money calls and/or call spreads on Dec. Corn.

Cattle: Yesterday Oct. LC closed 107 higher at 118.70 and Oct. FC 117 higher at 137.52. Over night Oct. LC traded as high as 119.20. If remain short Oct. LC take profits and stand aside as my recommended protective buy stop has been reached. Starting tomorrow I will be quoting Dec. LC and Nov. FC.

Silver: Dec. Silver is currently 2 cents lower at 40.11. I remain on the sidelines awaiting a break below 39.00 to reinstate a long position.

S&P's: Dec. S&P's are currently 2.00 lower at 1194.00. What seems to be the usual concerns over European debt has taken the market off of yesterday's high in the 1214.00 area. Near term support is the 1184.00 area with longer term support just below the 1164.00 area. The markets await the comments from the FOMC (Fed Open Market Committee) early this afternoon. I will continue to have a negative bias unless this market closes above the 1223.00 level.

Currencies: As of this writing the Dec. Euro is 25 lower at 1.3653, the Swiss 45 lower at 1.1231, the Yen unchanged at 1.3111 and the Pound 115 lower at 1.5600. I remain long the Oct. Yen 1.2400 put. I feel that the Swiss, the Euro and the Yen are all headed lower but will wait for a rally before selling futures. I expect these markets to remain highly volatile.

Regards,

Marc
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mnemenoff@pricegroup.com