Financials: Mar. Bonds are currently 22 higher at 122'08. Credit worries over the last 2 days concerning Dubai and Abu Dhabi has sent the market on a flight to quality. We remain short the combination of short the Mar. Bonds and short the Mar. Bond 115'00 put. We have a good till cancel order working to cover the short Mar. Bond 115'00 put at 19 points (currently trading at 40 points).

Grains: On Wednesday Beans were 8 higher, Corn 16 higher and Wheat 17 higher. Over night Beans were 21 lower, Corn 10 lower and Wheat 13 lower as the market broke on a dollar recovery and credit concerns in the Mid East. We continue to hold the combination of short out of the money puts and calls in Mar. Beans.

Cattle: On Wednesday Dec. Cattle closed moderately higher at 83.67, but, the market has given up those gains and is currently 60 lower at 83.05. I suspect the market will remain lower today along with most other commodity markets because of a stronger Dollar and credit concerns. We continue to remain long with a protective sell stop 300 points below our entry level of 83.80. We also remain spread long Dec. / short Apr.

Silver: Dec. Silver is currently 85 cents lower at 17.93. We remain long out of the money call spreads in the July contract. As stated in my other comments this market is lower due to a Dollar recovery.

S&P's: Along with just about all other markets the S&P's are sharply lower this morning currently trading at 1079.50. This is 30.00 lower from Wednesday's close. We remain on the sidelines. Consider buying out of the money puts on the Mar. contract for portfolio insurance.

Currencies: As of this writing the Dec. Euro is 264 lower at 1.4873, the Swiss 171 lower at .9868, the Yen 78 higher at 1.1520 (a 14 year high) and the Pound 340 lower at 1.6373. We remain long out of the money puts in the currencies. Given this morning's sharp break you might consider rolling your put positions to lower strike prices in an effort to take some money off the table. The Dec. Dollar Index is currently is currently 65 higher at 75.54. If you went long on Wed. in the 74.40 level either take the short term profit or use a close protective sell stop. Near term resistance is in the 76.30 area.

Regards,

                Marc