Financials: Dec. Bonds are currently 10 higher at 120'04. If you continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put, cover the short put at 15 points (plus or minus a couple of points). This option is currently at 18 points. Once this option is covered I will be looking to sell the January 115'00 put at 1'00 or better as a hedge against an existing short Dec. Bond position.

Grains: Yesterday Jan. Beans were 21 cents higher, Dec. Corn 16 higher and Dec. Wheat 22 higher. Over night Beans were 4 lower, Corn 4 lower and Wheat 8 lower. Yesterday the Grains rallied while the Dollar weakened, today the Dollar has reached a new recent high, and consequently the Grains are lower. Other than the Dollar's effect on the market, the talk is that the weight per bushel of Corn may be down as much as 6%, and that the yield per acre for Beans may be slightly higher than expectations. I am still willing to go long Dec. Corn in the 357'0 area (Monday the market gave an opportunity with a low of 359'2) and Jan. Beans below 960'0.

Cattle: Yesterday Dec. Cattle closed 55 higher at 86.22. The long Dec./short Apr. Spread lost 15 points closing at 312 premium the Apr. We are currently long Dec./short Apr. from the 280 level premium the Apr.

Silver: Dec. Silver is currently 12 cents lower at 16.31 we remain long out of the money call spreads in the July contract, having taken profits on futures positions. I must say that I am concerned about this market. Yesterday Gold rallied substantially almost testing recent highs in the 1070 area while Silver rallied modestly to the 16.50 area, nearly 1.75 from recent highs. For the moment I will be a cautious buyer of futures if the market trades below the 15.40 level.

S&P's: Dec. S&P's are currently 7.00 lower at 1032.00. We remain short futures and/or out of the money puts. Support is currently 1024.00 and resistance 1051.00. It is time to consider taking action on short futures position. I will offer a few recommendations: Take profits. Use a close stop. Buy back your short futures and purchase out of the money puts. Sell out of money puts against an existing short futures position. If you are currently long puts you may want to roll them into a lower strike price in order to take some cash off the table.

Currencies: As of this writing the Dec. Euro is 109 lower at 1.4642, the Swiss 83 lower at .9691, the Yen 5 higher at 1.1071 and the Pound 90 lower at 1.6294. We remain long out of the money put spreads in the Pound and long out of the money puts in the Yen. The Dec. Dollar Index is currently 45 higher at 76.91. Overnight the Dollar Index made a high of 77.50 trading through recent resistance of 77.00.

Regards,

                Marc