Financials: Mar. Bonds are currently 3 lower at 119'18. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115'00 put (currently at 58 points). I recommend covering the Mar. 115'00 put at 19 points if the market allows.

Grains: Yesterday beans were 9 cents lower, Corn 1 higher and Wheat 8 lower. Over night Beans were 1 lower, Corn 3 higher and Wheat fractionally lower. We continue to hold the combination of short the Mar. Beans 960'0 put and short the Mar. Beans 1160'0 call. I recommend covering this position at 35'0 or better. The spread closed on Tuesday around 36'0.

Cattle: Yesterday Feb. Cattle closed 17 lower at 83.12. The long Feb. /short Apr. spread gained 17 points closing at 285 premium the Apr. If the spread trades below 200 points take profits.

Silver: Mar. Silver is currently 5 cents lower at 17.75. The market is currently in near term support. Yesterday we went long with a small position (if you trade multiple positions I recommend doing no more than half your usual number at this time). We continue to hold out of the money call spreads on the July contract. Near term resistance is currently 18.620. If the market trades above the 18.400 level I recommend taking profits from recent long futures positions.

S&P's: Mar. S&P's are currently 1.75 higher at 1087.00. Yesterday the Dec. contract closed under 1095.00 generating a minor sell signal. I continue to recommend buying out of the money puts as portfolio insurance or speculation. The market now seems to have some credit related fears especially concerning Central and Eastern Europe. A note of apology: Yesterday I mistakenly stated that the Mar. contract was trading at an 8.00 point premium to the Dec. The fact is that the Mar. is at a 5.00 point discount to the Dec. I apologize for any confusion.

Currencies: As of this writing the Mar. Euro is 38 higher at 1.4715, the Swiss 16 higher at 9746, the Yen 57 higher at 1.1385 and the Pound 19 lower at 1.6230. We remain long out of the money puts in the currencies. If the Pound trades below 1.6100 over the next couple of sessions I recommend selling the 1.5700 put against your present long put position leaving you with an out of the money put spread. The Mar. Dollar Index is currently 13 lower at 76.50. I am on the sidelines in the Dollar Index.

Regards,

                Marc