Financials:

Dec. Bonds are currently 4 higher at 118'18, the 10 Yr. Notes 2 higher at 118'15, the 5 Yr. Notes 1 higher at 116'22 and the 2 Yr. Notes fractionally lower at 108'295. On Friday we covered the short Dec. Bond 116'00 put position at 15 points and sold the Jan. 115'00 put 1'01 leaving us with a combination of short Dec. Bonds and short the Jan. Bond 115'00 put.

Grains:

On Friday Jan. Beans were 17 cents lower at 955'0, Dec. Corn 9 lower at 367'0 and Dec. Wheat 15 lower at 487'2. Over night Beans were 7 higher, Corn 5 higher and Wheat 8 higher. On Friday we were able to buy Jan. Beans below 977'0 (the high for the day session was 971'0) and Dec. Corn below the 371'0 level. I recommend using a protective sell stop in the Beans 25 cents below your entry level and a protective sell stop in the Corn 15 cents below your entry level.

Cattle:

On Friday Dec. Cattle closed 135 lower at 85.00. The long Dec./ short Apr. spread lost 62 points closing at 400 points premium the Apr. I must say that I am a bit surprised at how much the Dec. lost in comparison to deferred contracts. We continue to hold this spread.

Silver:

Dec. Silver is currently 27 cents higher at 17.65. We remain long out of the money call spreads. I am a bit concerned with this market as it has lost ground to Gold, as Gold has been making record highs and Silver is still below the high made last month.

S&P's:

Dec. S&P's are currently 10.25 higher at 1076.50. We have been stopped out with a 15.00 point loss from a short position initiated last week in the 1061.00 area. I recommend staying on the sidelines.

Currencies:

As of this writing the Dec. Euro is 158 higher at 1.4991, the Swiss 107 higher at .9933, the Yen 10 higher at 1.1128 and the Pound 167 higher at 1.6764. I remain long out of the money puts in the Yen and long out of the money put spreads in the Pound. These positions have very little value left and at the moment I see no reason to liquidate the position and basically look at them as lottery tickets. The Dec. Dollar Index is currently 80 lower at 75.14. The dollar has made a new low for the year this morning at 75.025.

Regards,

                Marc