Financials: Bonds are currently 3 lower at 118'30, the 10 Yr. Notes 3 lower at 117'16, the 5 Yr. Notes 2 lower at 115'19 and the 2 Yr. Notes fractionally lower at 108'14. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put. Near term support on Dec. Bonds remains in the 118'12-118'20 area. Longer term support remains in the 117'18 area. The overnight low for Dec. Bonds was 118'20.

Grains: On Friday Beans were fractionally higher, Corn 5 lower and Wheat 4 lower. Over night Beans were 3 higher, Corn 1 higher and Wheat 5 higher. Resistance was established early in the session on Friday at 1025'0 in Nov. Beans, 413'0 in Dec. Corn and 573'0 in Dec. Wheat before the market showed signs of profit taking and fell into negative territory. We are currently on the sidelines.

Cattle: On Friday Dec. Cattle closed about unchanged at 87.40. The long Dec. /short Apr. spread gained 12 points closing at 207 premium the Apr. I will be looking to take profits on this spread below the 200 point level premium the Apr. if the market allow today.

Silver: Dec. Silver is currently 7 cents lower at 17.65. I continue to recommend taking profits on long futures positions and buying some out of the money call spreads on the July contract as a means of staying in the market on the long side.

S&P's: Dec. S&P's are currently 1.50 higher at 1078.50. We remain short futures and/or long out of the money put options.

Currencies: As of this writing the Dec. Euro is 18 higher at 1.5018, the Swiss 17 higher at .9932, the Yen 18 higher at 1.0876 and the Pound 33 higher at 1.6339. Late last week Britain released a report showing a 0.4% GDP decline versus expectations of a slight gain. This was the sixth consecutive quarterly decline causing Friday's 300+ point break in the Pound. 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 10 lower at 75.500.

Regards,

                Marc