Financials: Jun. Bonds are currently 25 higher at 120'25. Same story, different day. The market continues to experience a flight to quality because of the situation in Europe. I feel the market is overbought, but I am not willing to stand in front of a freight train, so to speak. I recommend the sidelines.

Grains: Yesterday Beans were fractionally higher, Corn 2 lower and wheat 9 higher. Over night Beans were 1 lower, Corn 3 lower and Wheat 4 lower. We remain long out of the money call spreads in Nov. Beans. We also remain short the Sept. Corn 420'0/340'0 strangle. Once again a strong Dollar should limit any upside potential for the day.

Cattle: Yesterday Live Cattle closed 20-50 higher and Feeder Cattle unchanged to 30 higher depending on the contract month. At this time I prefer the short side of the market on rallies in the Jun. and Aug. contracts.

Silver: July Silver is currently 62 cents lower at 17.24. I must admit that I am a bit surprised by the dramatic break over the last two sessions. I am a buyer on this break and adding to yesterday's buy below the 18.46 level.

S&P's: Jun. S&P's are currently 13.00 lower at 1159.25. If you went short at 1175.00 on yesterday's recommendation either take profits or use a protective buy stop at 1173.00. Longer term I feel this market is headed lower, but I suspect that the market will be quite volatile over the next few sessions given the situation in Europe and Friday's Employment Report.

Currencies: As of this writing the Jun. Euro is 177 lower at 1.2828, the Swiss 125 lower at .8958, the Yen 32 lower at 1.0566 and the Pound 86 lower at 1.5074. If you went long out of the money put spreads in the Euro yesterday consider rolling into a lower strike price on your long leg to take some money off the table given this mornings sharp break. The Dollar Index is on new highs, up 92 points at 84.34.

Regards,

Marc