Financials: Mar. Bonds are currently 1 lower at 117'30. We remain short the Mar. Bond 119'00 put. As mentioned yesterday, I am a bit concerned about this position because of the possibility of a flight to quality. For the moment, I have raised my bid from 40 points to 48 points to cover this position. For the near term support for Mar. Bonds is 116'23 and near term resistance 118'16.

Grains: Yesterday Beans were 13 cents lower, Corn 1 lower and Wheat 3 lower. Over night Beans were 4 higher, Corn fractionally higher and Wheat fractionally lower. Yesterday we went long Mar. Beans below the 955'0 level and will use a protective sell stop at 936'0. If the market trades above 967'0, either take the short term profit or raise your sell stop to your break even level. I am encouraged that in spite of today's renewed strength in the Dollar the grains are trading slightly higher.

Cattle: Yesterday Feb. Cattle closed 45 lower at 87.45. In the overnight electronic market Feb. Cattle is currently 40 lower at 87.05. If you remain long, either take profits or continue to use a sell stop at 86.90. I am liquidating the long Feb./ short Apr. spread this morning. Given the recent rise in Cattle futures, I must admit that I am disappointed that the forward spreads have not worked. I suspect that after Feb. 1st this spread could work, but given the risk of delivery and the dates of our open long position on the Feb. leg of the spread, I do not feel it is worth any further risk at this time.

Silver: Mar. Silver is currently 5 cents lower at 17.84. My recommended stop for long Mar. futures positions at 18.06 was penetrated yesterday. We remain long out of the money call spreads on the July contract.

S&P's: Mar. S&P's are currently 2.00 higher at 1135.00. We remain long out of the money puts. A close below the 1127.00 level will generate a near term sell signal.

Currencies: As of this writing the Mar. Euro is 10 lower at 1.4095, the Swiss 4 lower at .9578, the Yen 72 lower 1.0895 and the Pound 82 lower at 1.6199. If you remain short the Pound either take profits or lower your protective buy stop to the 1.6310 level. The Mar. Dollar Index is currently 13 higher at 78.630. A close above the 78.800 level could signal a move to the 80.300 area.

Regards,

                Marc