Financials: Dec. Bonds are currently 20 higher at 119'01. We continue to hold the combination of short Dec. Bonds and short the Jan. Bond 115'00 put. I recommend that you enter a good till cancel order to cover the short Jan. Bond 115'00 put at 18 points or better. The market will be watching the Bond and Note results of the second leg of this weeks $81 billion quarterly refunding. Support for Dec. Bonds remains at 117'20 and resistance at 119'21.

Grains: Yesterday Beans were 4 lower, Corn 8 higher and Wheat 3 higher. Over night Beans were 6 higher, Corn 2 higher and Wheat 6 higher. It appears that the market has discounted the negative numbers in Beans in favor of the positive numbers for Corn from yesterday morning's report. We have taken profits from long Dec. Corn positions. If you remain long either take profits or raise your sell stop to the 386'0 level. We remain long Jan. Beans and will raise our sell stop to the 956'0 level. If Jan. Beans trade above 986'0 either take profits or raise your sell stop to your break even level.

Cattle: Yesterday Dec. Cattle closed 35 lower at 84.60. The long Dec. /short Apr. spread is currently trading at about 450 points premium the Apr. We continue to hold this spread (we are currently losing 170 points). Support for Dec. Cattle is just below the 84.00 level. If the Dec. trades below 83.80 I will be looking to establish a long position.

Silver: Dec. Silver is currently 43 cents higher at 17.65. We remain long out of the money call spreads. Near term resistance is in the 18.20-18.40 area. A close above 18.40 should signal higher prices.

S&P's: Dec. S&P's are currently 4.25 higher at 1096.25. I remain on the sidelines.

Currencies: As of this writing the Dec. Euro is 34 higher at 1.5013, the Swiss 19 higher at .9942, the Yen 18 lower at 1.1125 and the Pound 100 lower at 1.6634. We remain long out of the money put spreads in the Pound and long puts in the Yen. The Dollar Index is currently 7 lower at 75.04. As mentioned yesterday we are nearing long term support on the Dollar Index in the 74.00 area.

Regards,

                Marc