Financials: Mar. Bonds are currently 10 lower at 122'10. For the moment it appears that the credit crisis in Dubai is somewhat contained. To be honest I feel that that there will be more problems forthcoming such as what the market experienced. That being said I still believe that interest rates are going to trend higher in the coming months. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115'00 put. We continue to have a good Till Cancel order to cover the Mar. Bond 115'00 put at 19 points (currently at 37 points). If this order is filled it will leave us short the Mar. Bonds and I will be looking for another opportunity to partially hedge this position.

Grains: On Friday Beans were 1 lower, Corn 5 higher and Wheat 1 lower. Over night Beans were 6 higher, Corn fractionally lower and Wheat 7 higher. The market on Friday recovered from its sharply lower over night trade due to the possibly of default in Dubai. I remain on the sidelines as far as futures are concerned. We continue to remain short a combination of out of the money puts and calls in Mar. Beans. The recommended position was being short the Mar. Beans 960 put and short the Mar. Beans 1160 call and collecting 60'0 for the combination.

Cattle: On Friday Dec. Cattle closed 47 lower at 83.20. We remain long with a protective sell stop 300 points below our entry level of 83.80. We continue to hold the long Dec. / short Apr. spread.

Silver: Mar. Silver is currently 12 cents lower at 18.21. We continue to hold out of the money call spreads in the July contract.

S&P's: Dec. S&P's are currently unchanged at 1089.00. On Friday the market rallied about half way back off its early morning losses. I am a bit negative on the market at this time. I recommend buying out of the money puts for portfolio insurance.

Currencies: As of this writing the Dec. Euro is 50 higher at 1.5010, the Swiss 20 higher at .9956, the Yen unchanged at 1.1523 and the Pound 47 lower at 1.6444. We remain long out of the money puts in the currencies. The Dec. Dollar Index is currently 16 lower at 74.88. On Friday we took a short term profit on a long position in the Dollar Index from the 74.40 area.