Financials: Jun. Bonds are currently 4 lower at 124'24. The market traded higher this morning before backing off to present levels on reports that the Bank of Spain had taken over a regional bank. We remain spread long 10 Yr. Notes/ short Bonds which has recovered somewhat since early Friday trimming the loss from $1,000 per spread to about $500. Support and resistance for Jun. Bonds is currently 123'08 to 126'00.

Grains: On Friday Beans closed 3 cents lower, Corn fractionally lower and Wheat 2 higher. Over night Beans were 5 higher, Corn fractionally lower and Wheat 3 lower. We remain long July Beans and have mover our protective sell stop to the 929'0 level. Resistance for July Beans is currently the 952'0 level. If the market trades above this level either take profits or raise your sell stop to the 933'0 level. We remain long out of the money call spreads on Nov. Beans and short the Sept. Corn 340'0/420'0 strangle.

Cattle: On Friday Live and Feeder Cattle were slightly higher to slightly lower depending on the contract month. The market did however trade moderately higher during the session and traded above my recommended buy stop for remaining short Aug. Live Cattle positions of 90.95. We are now on the sidelines as far as speculative positions are concerned. On Friday there was a Cattle on Feed Report which showed the following: On Feed 97% versus expectations of 96.7%. Placements 102% versus 102.3%. Marketed 99% versus 100.2%. Given the current market sentiment I do not feel that this report will give the market a reason to move sharply one way of the other. Producers should continue to hold out of the money put positions.

Silver: July Silver is currently 21 cents higher at 17.86. We remain long from below the 18.40 level.

S&P's: Jun. S&P's are currently 3.00 lower at 1180.50. On Friday the market developed support just below the 1060.00 level, the lows made last week during the flash crash Resistance is currently the 1088.00 level. Treat as a trding market between support and resistance. At the moment I favor the long side of the market on sharp breaks.

Currencies: As of this writing the Jun. Euro is trading 217 lower at 1.2370, the Swiss 91 lower at .8632, the Yen 70 lower at 1.1071 and the Pound 85 lower at 1.4387. Reports that the Bank of Spain has bailed out a regional bank and another report that China is concerned about Europes sovereign debt and deflation have pressured most currencies against the dollar this morning. I am still looking at the Euro as a trading affair between the 1.2300 and 1.2500 levels. I still like the short side of the Yen for a short term trade on a rally above the 1.1200 level. The Dollar Index is currently 98 higher at 86.52. Resistance

for the Dollar Index is currently above the 87.40 level.

Regards,

Marc