Financials: Dec. Bonds are currently unchanged at 120'26. We continue to hold the combination of short Dec. Bonds and short the Mar. Bond 115'00 put. Next week I will roll the short Dec. Bond futures into the Mar. contract.

Grains: Yesterday Beans were 12 cents higher, Corn 3 lower and Wheat 3 lower. Over night Beans were 1 lower, Corn 3 lower and Wheat 5 lower. Dec. Grain options expire today. We continue to hold a combination of out of the money short puts and short calls (with strike prices about $1.00 out of the money) in Mar. Beans. I am on the sidelines in Wheat and Corn.

Cattle: Yesterday Dec. Cattle closed 60 higher at 83.67. The long Dec. /short Apr. spread gained back 60 points closing at 420 premium the Apr. We continue to hold both this spread and a net long position in Dec. Cattle. Continue to use a protective sell stop in Dec. Cattle 300 points below your entry level.

Silver: Dec. Silver is currently 23 cents lower at 18.20. We remain long out of the money call spreads in the July contract.

S&P's: Dec. S&P's are currently 6.75 lower at 1087.50. Near term support remains at 1086.00 and near term resistance is now the 1106.00 level. I remain on the sidelines.

Currencies: As of this writing the Dec. Euro is 82 lower at 1.4835, the Swiss 60 lower 98.10, the Yen 13 lower 1.1224 and the Pound 167 lower at 1.6477. I continue to favor the short side of the currencies and recommend being long out of the money puts and/or put spreads. The Dec. Dollar Index is currently 44 higher at 75.81. Support in the Dollar Index is currently 74.80 and resistance remains at 76.50 for the near term.

Regards,

                Marc