Financials: Mar. Bonds are currently 1'13 higher at 116'19. We continue to hold the combination of short the Mar. Bond 112'00 put and short the Mar. Bond 119'00 call. This trade was initiated at 1'18 (82 points,$1281.25). I recommend using an open order to cover this position at 48 points which should yield profit of $500+ if the market allows. The market for this combination is currently around 72 points.

Grains: Yesterday Mar. Beans closed 11 cents lower, Corn fractionally lower and Wheat 4 higher. Over night Beans were 10 cents lower, Corn 9 lower and Wheat 8 lower. The prospect of a good South American Bean crop has pressured the grains the last few sessions. Traders are viewing this mornings Crop Production Report as bearish. We remain on the sidelines.

Cattle: Yesterday Feb. Cattle closed 77 lower at 85.05. I am looking to go long with a protective sell stop just below the 84.00 level. We remain spread long Feb./short Apr. which is currently at a $600.00 loss.

Silver: Mar. Silver is currently 20 cents lower at 18.49. If you are long Mar. futures either take profits or continue to use a protective sell stop at 18.06. We remain long out of the money call spreads on the July contract. If the July contract should trade above the 19.50 level, take profits on option call spreads or roll into higher strike prices.

S&P's: Mar. S&P's are currently 7.50 lower at 1135.00. Some lower than expected quarterly earnings have pressured the market this morning. We continue to hold out of the money puts as both portfolio insurance and a speculative position.

Currencies: As of this writing the Mar. euro is currently 36 lower at 1.4484, the Swiss 21 lower at .9829, the Yen 95 higher and the Pound 38 higher at 1.6132. I remain on the sidelines in the Currencies at this time.

Regards,

                Marc