Financials: March Bonds are currently 5 higher at 121'03. We continue to hold the combination of short Bonds and short the Mar. Bond 115'00 put. I recommend using a Good Till Cancel order to cover the short Mar. Bond 115'00 put at 19 points (currently at 50 points).

Grains: Yesterday Beans were 4 cents higher, Corn 11 lower and Wheat 24 cents lower. Over night Beans were up 8, Corn up 7 and Wheat up 11. Our only current position is the combination of short out of the money puts and calls in the Mar. Beans. I prefer being 100'0 out of the money. Example: short the Mar. Beans 1160 call and short the Mar. Beans 960'0 put.

Cattle: Yesterday Dec. Cattle closed 65 lower at 83.47. The long Dec. /short Apr. spread lost 40 points closing at 475 premium the Apr. We remain long Dec. Cattle from below the 83.80 level with a protective sell stop 300 points below our entry level. We also remain spread long Dec. / short Apr.

Silver: Dec. Silver is currently 21 cents higher at 18.65. We remain long out of the money call spreads in July Silver. If silver starts trading above 19.00 take partial profits on the call spreads by rolling the long side of the spread into a slightly higher strike price. For example: If you are long the July 20.00 call and short the 22.00 July call, roll the 20.00 call into the 21.00 call leaving you with the 21.00/22.00 call spread.

S&P's: Dec. S&P's are currently 3.75 higher at 1106.75. I remain on the sidelines.

Currencies: As of this writing the Dec. Euro is 94 higher at 1.5069, the Swiss 68 higher at .9987, the Yen 128 higher at 1.1422 and the Pound 114 higher at 1.6703. The Dec. Dollar Index is currently 54 lower at 74.585. I remain long out of the money puts in the Currencies and at the moment it appears I am on the wrong side of the market. Support on the Dollar Index remains at 74.40. If this level on the Dollar Index does not hold we could be in for a test of the 2008 low in the 73.00 area.

Regards,

                Marc