Financials: Sept. Bonds are currently 19 lower at 135'13. The long 10 Yr. Note/ short Bond spread is currently at 9'01 premium the Bonds, a loss of 7 points on the spread. I still feel that this spread will narrow over time. That being said, we approaching first notice day for Sept. contracts and I recommend rolling the spread into the Dec. contract on this coming Monday. This mornings GDP report showed an increase of 1.6% versus an average expectation of 1.3%. This news caused the Bonds to break from the level of 136'02 just before the report. Another factor which could effect the Bonds this morning will be Bernake's speech at 9:00a.m. Chicago time. Support remains at 134'12 and resistance 136'31.

Grains: Yesterday Nov. Beans closed 15 cents higher, Dec. Corn unchanged and Dec. Wheat up 8. Over night Beans were 3 higher, Dec. Corn 4 higher and Wheat 4 higher. Corn continues to hold support on a close only basis above the 416'0 level and looks poised to trade above the recent high close of 437'2. If you are long I recommend using a protective sell stop in the 422'0 area or look for a profit taking opportunity. We remain long calls and/or call spreads. If Dec. Corn should trade above the 440'0 level I recommend selling further out of the money calls against any naked long call positions to take some cash off the table.

Cattle: Yesterday Live Cattle closed 20 lower to 35 higher depending on the contract month. Feeder Cattle closed steady to slightly higher. This morning, Cattle and Feeder's are trading 50-70 lower. I still feel that higher feed grain prices and last Friday's Cattle on Feed Report will push prices a bit lower.

Silver: Dec. Silver is currently 8 cents higher at 19.10. If you remain long futures continue to use a protective sell stop at 18.40. We remain long the Dec. 20/22 call spread. If you are still in the Sept. contract I recommend that you roll into dec. to avoid a delivery situation.

S&P's: Sept. S&P's are currently 6.00 higher atv 1051.00. This morning's GDP report has
rallied the market to current levels. Technically the 1038.00 level contniues to hold. Resistance remains in the 1067.00 area. I am on the sidelines.

Currencies: As of this writing the Sept. Euro is 22 higher at 1.2724, the Swiss 1 higher at .9761, the Yen 90 lower at 1.1768 and the Pound 26 lower at 1.5497. We remain the Dec. Yen 1.12 put.

Regards,
Marc