Financials: Dec. Bonds are currently 2 lower at 118'01. If you continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put, my strategy remains the same. Cover the Dec. 116'00 put at 15 points, if this is accomplished sell the Jan. 115'00 put at 1'00 or better. Yesterday's announcement by the Fed that there is no change in interest rates comes as no surprise. It is fully evident that short term rates will not change in the months to come, however, that does not mean that the spread between long term and short term rates will not change. I still feel that long term rates (30 Yr. Bonds and 10 Yr. Notes) are poised to head higher and that the spread between the 30 yr. and 10 Yr. will continue to narrow in terms of the futures markets (in terms of the rate of interest, the 30 Yr. will continue to pay a higher interest rate than the 10 Yr.) For the near term support in Dec. Bonds is 117'18 and resistance for the near term is 119'26. I will be a seller on rallies to resistance.

Grains: Yesterday Beans were 11 cents lower, Corn 6 lower and Wheat 5 higher. Over night Beans were 6 lower, Corn fractionally lower and Wheat 3 lower. After three days of considerable buying by commodity funds the market has run out of buyers for the short term, despite a weakened dollar over the last two sessions. I still remain optimistic for the grains, but will bide me time and wait for a further break to reinstate long positions. Support for Dec. Corn is currently 371'0 and support for Jan. Beans is at 977'0.

Cattle: Yesterday Dec. Cattle closed 55 higher at 86.25. The long Dec. /short Apr. spread gained 7 points closing at 347 premium the Apr. We continue to hold this spread.

Silver: Dec. Silver is currently 4 cents higher at 17.44. We remain long out of the money call spreads in the July contract.

S&P's: Dec. S&P's are currently 4.00 higher at 1051.00. I remain negative on this market but urge you to use good money management techniques to protect profits you may have from short futures and/or long put positions. Support is currently 1026.00 and resistance 1061.00. After yesterday's Fed announcement on interest rates, the market rallied to the 1057.00 level only to retreat to the 1047.00 level by the closing indicating to me that there are still sellers in this market on rallies.

Currencies: As of this writing the Dec. Euro is 24 lower at 1.4861, the Swiss 27 lower at .9836, the Yen 43 higher at 1.1057 and the Pound 44 lower at 1.6545. To say that yesterday's sharp rally in the currencies took me by surprise would be an understatement to say the least. At the moment I still remain long out of the money puts in the Yen and long out of the money put spreads in the Pound. If the Euro rallies above 1.4950, I will be looking to establish a position anticipating a break by either selling futures or buying puts. The Dec. Dollar Index is 8 higher at 75.91.

Regards,

                Marc