Financials: Mar. Bonds are currently 8 lower at 142'05 and the 10 Yr. Note 3 lower at 130'11. This mornings ADP Report on private sector jobs showed an estimated increase of 325,000 vs. a pre-report estimate of 175,000. Initial Jobless Claims were down 15,000 vs an average estimate of down 6,000. The early average estimate for tomorrow morning's Unemployment Report is for an increase in non-farm payrolls of 155,000. We currently have no positions in Bonds having taken profits on the long 10 Yr. Note/ short Bond Spread. We continue to hold the long 5 Yr. Note/ short 10 Yr. Note spread which is currently trading at 7'09.5 premium the 10 Yr. Note. I will be looking to take profits if the spread trades below the 7'05 level. As for the Bonds, I'm still a bit gunshy fearing a flight to quality because of a strong Dollar and the unknown prospects of the coming weeks refinancing and debt auctions in both Spain and Italy.

Grains: Yesterday Mar. Beans closed 2'4 higher, Mar. Corn unchanged and Mar. Wheat 7'0 lower. Over night Beans were 11 lower, Corn 6 lower and Wheat 8 lower. Over night strength in Dollar has had the expected effect. If you remain long Mar. Corn either take profits or use a protective sell stop in the 638'0 area.

Cattle: Yesterday Feb. LC closed slightly higher at 121.62 and Mar. FC 112 higher at 150.55. Speculatively I remain on the sidelines with a negative bias waiting for a technical reason to go short. Producers should be taking advantage of recent price advances for hedging opportunities.

Silver: Mar. Silver is currently 30 ents lower at 28.77 and Feb. Gold 13.00 lower at 1600.00. I have no position at this time.

S&P's: Mar. S&P's are currently 5.00 lower at 1268.00. This mornings ADP and Jobless Claims Report boosted the market off of lows in the low 1260's to unchanged and back to current levels. Treat as a trading affair between 1260 and 1280 keeping in mind tomorrow's monthly Jobs report.

Currencies: As of this writing the Mar. Euro is 130 lower at 1.2814, the Swiss 105 lower at 1.0521, the Yen59 lower at 1.2984 and the Pound 112 lower at 1.5488. The Euro and Swiss are now on new recent lows. We remain long out of the money puts in the Euro and the Yen. Something to consider: Natural Gas is on a more than 2 year low near the 3.000 level. I am going long the Mar. mini contact with is ¼ the size of the full contract.

Regards, Marc

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