Financials: Dec. Bonds are currently 26 lower at 118'18. We continue to hold the combination of short Dec. Bonds and short the Jan. Bond 115'00 put. I recommend entering a Good Till Cancel (GTC) order to cover the short Jan. 115'00 put at 18 points or better. Support for Dec. Bonds remains at 117'20 and resistance at 119'21.

Grains: Yesterday Beans were 4 higher, Corn fractionally lower, and Wheat 8 higher. Over night Beans were 7 lower, Corn 8 lower and Wheat 7 lower. Yesterday the Beans gave a profit taking opportunity above the 986'0 level, the high being 986'4. I also recommended that if the market traded above 986'0 to raise your protective sell stop to break even levels. This point was also reached putting us on the sidelines. My recommended sell stop of 386'0 in Dec. Corn has also been penetrated, putting us on the sidelines in Corn.

Cattle: Yesterday Dec. Cattle closed 95 lower at 83.65. The long Dec./ short Apr. spread lost 17 points closing at 470 premium the Apr. The market at this time is 25 lower in Dec. Cattle at 83.40. I am a buyer at this level with an initial 300 point risk.

Silver: Dec. Silver is currently 12 cents lower at 17.41. We remain long out of the money call spreads. Once again I caution against being long futures at this time as I feel the market is vulnerable to a set back. I need to see the Dec. Silver close above the 18.40 level to feel that there is upside potential for the near term.

S&P's: Dec. S&P's are currently 2.00 lower at 1094.25. I remain on the sidelines.

Currencies: As of this writing the Dec. Euro is 40 lower at 1.4922, the Swiss 27 lower at .9882, the Yen 60 lower at 1.1065 and the Pound 12 lower at 1.6541. We remain long out of the money put spreads in the Pound and long out of the money puts in the Yen. I feel that the Dollar could rally and recommend buying either some cheap out of the money puts in the Euro and/or cheap out of the money calls in the Dollar Index (Dec. or Jan.). The Dec. Dollar Index is currently 24 higher at 75.500.

Regards,

                Marc