Financials: June Bonds are currently 22 higher at 145'05. The inability of the Greek government to form a coalition and more worries about Spain has caused another wave of flight to safety. The 30 Yr. Bond yield is hovering right around 3.0% and the 10 Yr. Note around 1.8%. We remain short call spreads and obviously we are wrong at this point in time.

Grains: Overnight July Corn traded 3'4 lower at 619'4, July Beans 14'6 lower at 1423'4 and July Wheat 4'0 lower at 611'0. Once again July Corn failed at the 630'0 level. My recommendation, if you went short once again in the 630'0 area, take profits and stand aside until after tomorrows Crop Production and Supply/Demand Reports. As noted last week, Beans appeared to be in an overbought/overpriced situation. Since that time July Beans have broken from the 1510'0 level to todays level of just under 1425'0 inspite of continued Chinese demand.

Cattle: June LC are currently 30 lower at 115.52 and May FC 25 lower at 151.12. These markets have given several opportunites to short term trade from the long side on 75-100 point breaks over the last few days. My bias has now changed from friendly to nuetral. If you are long, I recommend using a close stop.

Silver: July Silver is currently 51 cents lower at 28.94 and June Gold 18.00 lower at 1586.00. I have been talking about waiting for breaks in these markets for weeks and I believe we may be close to a bottom. As I have mentioned in the past, these markets are highly volatile and one should watch there leverage accordingly. If you are looking for a store of value I am recommending the long side and caution against committing more than 5-10% of your overall portfolio value at this time.

S&P's: June S&P's are currently 13.00 lower at 1345.50. As I mentioned Monday I felt the market would provide another buying opportunity in the mid 1340's. Expect this market to remain highly volatile as events unfold in Europe. Resistance remains in the 1370.00 area. Use Protective Stops!!

Currencies: AS of this writing the June Euro is trading 86 lower at 1.2944, the Swiss 70 lower at 1.0780, the Yen 35 higher at 1.2570 and the Pound 68 lower at 1.6093. Greek and Spainish debt are once again of concern, that being said, I am impressed that the Euro is not at lower levels. If you remain short the Euro, either take profits or use a close stop.

Regards,
Marc
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