Financials: Dec. Bonds are currently 30 lower at 138'21 and the 10 Yr. Note 14 lower at 128'12. This morning CPI came out at +0.3%, in line with expectations of +0.3%. Housing starts were friendly being up 15% vs. average expectations of +4.2%. Building permits were down 5% about as expected. I still feel the near term trend is down and prefer the short side of the market on sharp rallies. That being said, treat as a trading market between 138'00 and 141'15.

Grains: Yesterday beans closed 2 cents lower, Corn 3 higher and Wheat 1 hihger. Over night Beans were unchanged, Corn 2 higher and Wheat 4 higher. Continue to treat Dec. Corn as a trading market between 615'0 and 655'0. I remain slightly bullish to Corn and continue to hold out of the money calls and/or call spreads in Dec. Corn.

Cattle: Yesterday Dec. Live Cattle closed 32 lower at 123.325 and Nov. Feeder Cattle 102 lower at 143.40. Over night these markets a slightly higher. I remain somewhat negative to the Cattle complex and continue to hold a short position in Dec. LC with a protective buy stop at 125.10. If the market should trade below 121.90 either take profits or lower your buy stop to your break even level.

Silver: Dec. Silver is currently 18 cents higher at 32.01. If you remain long term bullish, consider going long out of the money calls and/or call spreads for March 2012 expiration.

S&P's: Dec. S&P's are currently 1.00 lower at 1222.00. Yesterday the market recovered just about all of Monday's losses. Of note: The market was not able to take out Monday's high of 1230.75. Near term support is currently 1204.00. Yesterday we rolled up our short 1220 Dec. calls to the 1240 strike price.

Currencies: As of this writing the Dec. Euro is 104 higher at 1.3838, the Swiss 11 higher at 1.1138, the Yen 7 lower at 1.3032 and the Pound 125 higher at 1.5831. Yesterday we were stopped out of a recent short position with a small profit in the Euro. I recommend the sidelines for the moment, although I remain long term negative. We remain long out of the money puts in the Yen.

Regards,

Marc
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