Financials: Dec. Bonds are currently 20 higher at 119'10. This morning's report on Personal Spending showed a decline of 0.5%, right in line with expectations, and the largest drop in nine months. Third quarter Employment Cost Index was up 0.4% versus expectations of up 0.5%. If you continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00, cover the short 116'00 put at 15 points (currently trading at 27 points).

Grains: Yesterday Beans were 17 higher, Corn 10 higher and Wheat 9 higher. Over night Beans were 8 cents lower, Corn 4 lower and Wheat 4 lower. A weaker dollar and a further delayed harvest due to weather helped fuel yesterday's rally. This morning the dollar is starting to show a bit of a recovery and consequently prices are lower. I continue to recommend going long Jan. Beans in the 960'0 area and going long Dec. Corn in the 357'0 area.

Cattle: Yesterday Dec. Cattle closed 65 lower at 86.27. The long Dec./ short Apr. spread lost 30 points closing at 272 premium the Apr. I will be looking to reinstate this spread at 280 premium the Apr. if the market allows. Dec. Cattle is currently 10 lower at 86.17.

Silver: Dec. Silver is currently 23 cents lower at 16.43. We remain long out of the money call spreads in the July contract. I will be willing to once again go long futures below the 15.40 level if the market allows.

S&P's: Dec. S&P's are trading 5.50 lower at 1056.00. This morning's economic reports have not given the market a reason to rally. I remain negative equities and continue to remain short futures and/or long out of the money puts as portfolio insurance and a speculative position.

Currencies: As of this writing the Dec. Euro is 59 lower at 1.4785, the Swiss 48 lower at .9779, the Yen 62 higher at 1.0990 (91 to the dollar) and the Pound 20 lower at1.6524. We remain long out of the money puts in the Yen and long out of the money put spreads in the Pound. The Dec. Dollar Index is currently 21 higher at 76.27.

Regards,

                Marc