Financials: Mar. Bonds are currently 15 higher at 156’02, 10 Yr. Notes 6 higher at 127’01 and 5 Yr. Notes 5 higher at 119’02.7 as the market continues to rally in a flight to quality. Over the last couple of sessions the long 5 Yr. Note/short 10 Yr. Note has worked 8-10 points against us. I am willing to sit with position for a few more days in the expectation that markets will start to stabilize and expect a constructive Jobs Report tomorrow. Yesterday the ADP private sector jobs report showed an increase of 257K against expectations of 195K. I am once again interested in the 30 Yr. Bonds as they approach resistance in the 157’00 area where/when I will be looking to the short side of the market. Grains: Mar. Corn is currently 2’2 lower at 351’0, Mar. Beans 4’4 lower at 860’2, Mar. Chi. Wheat 2’0 lower at 460’4 and Mar. KC Wheat 1’2 lower at 459’6. As the long KC/short Chi. Wheat is now near even money I am encouraged to hold onto the position for the moment. Cattle: Live and Feeder Cattle look slightly lower at this early hour (6:45am) but I suspect they could more than just slightly lower. I am on the sidelines looking for a selling opportunity should the LCG trade above the 138.10 level. Silver: Mar. Silver is currently 10 cents higher at 14.08 and Feb. Gold 11.50 higher at 1103.50. I remain long. Take profits in Gold above 1120.00. S&P’s: Mar. S&P’s are currently 44.00 lower at 1943.00 as investors sell on concern of a slowing Global (particularly China) economy. If you remain short either take profits or use a close stop ahead of tomorrow’s employment report. Currencies: As of this writing the Mar. Euro is currently 75 higher at 1.0880, the Yen 55 higher at 0.8514, the Pound 52 lower at 1.4576 and the Dollar Index 47.1 lower 98.790. If you remain long Yen either take profits or raise your sell stop. If you are long the Mar. Yen 85.00 call I suggest “rolling� up 1 or 2 strike prices to take some cash off the table. We remain short the Dollar Index.

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