Financials: June Bonds are currently 21 higher at 145'00 and the 10 Yr. Note 9 higher at 133'02. This latest rally is another flight to safety in response to the J.P. Morgan Chase revelation of a Billion Dollar plus loss in the Credit Default Market. The question on everyone's mind: Is this an isolated case or systemic throughout the industry. For the moment I'm going to trade from the short side for short term trades with protective buy stops just above the recent highs of 145'08 in the Bonds and 133'08.5 in the 10 Yr. Notes.

Grains: Yesterday Corn closed 19 cents lower and Beans 25 cents higher in response to yesterday's supply/demand report. Over night July Corn traded 2'0 lower at 585'4, July Beans 16'0 lower at 1439'2 and July Wheat 4'4 lower at 596'6. I'm looking to be a buyer on breaks in July corn with an initial 20 cent risk.

Cattle: Over night June Cattle traded 60 lower at 115.25 and May FC 37 lower at 150.00. My upside objective of the 117.00 level in June Cattle was met early in the session yesterday putting me once again on the sidelines. Starting Monday we will be looking at Aug. LC and Aug. FC.

Silver: July Silver is currently 63 cents lower at 28.55 and June Gold 15.00 lower at 1580.50. I am cautiously looking to the long side of these markets on breaks.

S&P's: S&P's are currently 11.00 lower at 1346.50 as a result of the losses at J.P. Morgan. If the market holds these levels I would expect a bounce back to the 1360.00 area. If the market trades below 1338.00 I would expect a break to the mid 1320's.

Currencies: As of this writing the June Euro is trading 27 lower at 1.2926, the Swiss 22 lower at 1.0764, the Yen unchanged at 1.2518 and the Pound 77 lower at 1.6072. I am covering all short biased positions in the Euro and standing aside until next week.

Regards, Marc
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