Financials: Sept. Bonds are currently steady at 128'03. Over night the Bonds traded below near term support of 127'24 making an early morning low of 127'07 as the market reacted to favorable economic news from Europe. The market is now focused on results of stress tests of European banks. If you remain spread long 10 Yr. Notes/ short Bonds, my objective remains at 4'00 premium the Bonds (the spread is currently at 4'28). As mentioned yesterday I am currently on the sidelines as far as initiating new positions at this time.

Grains: Yesterday Nov. Beans closed 1 higher, Dec. Corn 3 lower and Dec. Wheat 8 higher. Over night Beans were 1 lower, Corn 1 higher and Wheat 1 lower. Dec. Corn has found some resistance in the 400'0 area as evidenced by yesterday's lower closing. I still feel the prevailing trend is up and will be a buyer in Dec. Corn below 377'0 if the market allows. We remain long the Dec. Corn 420'0/ 440'0 call spread.

Cattle: Yesterday Feeder Cattle closed moderately higher and Live Cattle 50 lower. We remain short Oct. Live Cattle with a protective buy stop at 95.65.

Silver: Sept. Silver is currently 10 cents higher at 18.22. Resistance remains in the 18.40-18.50 area. We remain long the Dec. 20/22 call spread. We have no futures positions at this time.

Currencies: As of this writing the Sept. Euro is 61 lower at 1.2834, the Swiss 75 lower at .9519, the Yen 43 lower at 1.1454 and the Pound 110 higher at 1.5373. Early European favorable economic news took the currencies higher before the market broke taking away early gains in the Euro, Swiss and Yen. The Pound has held onto overnight gains as their economy has evidenced a quarterly growth for the third quarter in a row. Watch for results of stress tests for EU banks. We have covered all short futures positions in the Euro but continue with a short bias by either being short calls or long puts. The Swiss tested the double top made in the .9620 area but was not able to penetrate. I still feel this market will generate a sell signal if it trades below the .9470 level.

Regards,

Marc