Financials: Dec. Bonds are currently 12 higher at 135'25 and the 10 Yr. Note 13 higher at 127'23. Yesterday Bonds closed about 3'00 lower removing the fear premium as a result of the European Union's latest solution to the debt crisis. The market is now near the August 11th low of 135'01 (the overnight low was 135'05). I am now turning my bias to the long side of the market and will be a buyer on any further breaks. Support is currently the 135'00 area and resistance is now the 138'15 area.

Grains: Yesterday Jan. Beans closed 24 cents higher at 1244'0, Dec. Corn 14'2 higher at 651'4 and Dec. Wheat 24'4 higher at 644'0 in what can only be described as buying frenzy euphoria due to action being taking to deal with the European debt crisis. Over night Beans were 8 lower, Corn 4 lower and Wheat 4 lower. As mentioned yesterday these markets for the moment will be dominated by the daily fluctuation in the Dollar. We remain long out of the money calls and/or call spreads in Dec. Corn.

Cattle: Yesterday Dec. Live Cattle closed 52 lower at 119.90 and Nov. Feeder Cattle 12 lower at 141.575. If you remain short Dec. LC either take profits or lower your buy stop to the 121.30 level. The early call is 50-60 higher.

Silver: Dec. Silver is currently 10 cents lower at 35.00. We remain long out of the money calls and/or call spreads for March 2012 expiration.

S&P's: Dec. S&P's are currently 6.50 lower at 1276.00. Needless to say, I'm under water, so to speak, being short what are now in the money calls. Given that premium was collected I'm sitting with position for the moment. For traders, support is currently 1254.00 and resistance the 1290.00 area.

Currencies: As of this writing the Dec. Euro is currently 43 lower at 1.4158, the Swiss 30 lower at 1.1612, the Yen 34 higher at 1.3209 and the Pound 2 higher at 1.6108. Not that the euphoria may be over, I'm ready to resume trading the Euro with support at 1.3970 and resistance at 1.4250. We remain long out of the money puts in the Yen which are now worth about ½ of what we paid for them.

Regards,

Marc

888.908.4310 | 312.264.4310

mnemenoff@pricegroup.com