Financials: Sept. Bonds are currently unchanged at 127'05. We continue to hold the combination of short Sept. Bonds and short the Sept. Bond 124'00 put. I am encouraged by the decline in Bonds from the post report highs made Fri. Near term resistance is 128'10  and near term support is now the 126'22 level.

Grains: Over night Nov. Beans were 3 cents higher, Dec. Corn 5 higher and Dec. Wheat  11 higher. I feel that the Beans are still a buy on breaks but feel the Corn is starting to be a  bit over bought. Producers should be starting to look at hedging opportunities as Dec. Corn nears the 400'0 level. We remain long out of the money call spreads in Nov. Beans.

Cattle: Live and Feeder Cattle are currently trading moderately higher. We currently do  not have a speculative position. However, I will be looking to the short side of the market in Oct. Cattle above the 93.00 level if the market allows. I also feel the producers should be looking for hedging opportunities above the 93.00 level in Oct. Live Cattle and above the 115.00 level in Sept. and Oct. Feeder Cattle.

Silver: Sept. Silver is currently 3 cents lower at 17.68. We have covered the short min- silver futures contract leg of the combination trade of long the Dec. 20/22 call spread and short a mini-silver futures contract. This leaves us long the Dec. $20.00/$22.00 call spread. I will be looking to the long side of Silver below the 14.40 level, stay tuned.

 S&P's: Sept. S&P's are currently 16.00 higher at 1030.25. Treat as a trading market between 1011.00 and 1042.00.

Currencies: As of this writing the Sept. Euro is 18 higher 1.2575, the Swiss 8 lower at .9409, the Yen 12 lower at 1.1398 and the Pound 14 lower at 1.5180. We contniue to have a short bias in the Yen. Last week we saw a substantial rally in the Euro as European countries successfully rolled over their 90 day and 180 day paper at the end of June with no apparent problem. Also Spain had another successful round of financing. I feel this is a case buy the rumor sell the fact. I am once again recommending the short side of the Euro by either selling futures or out of the money calls such as the Sept. 128 or Sept. 130 calls. The Sept. Deollar Index is currently 35 lower at 84.50.