Financials: Dec. Bonds are currently 21 lower at 153’09, 10 Yr. Notes 9 lower at 127’00 and 5 Yr. Notes 4 lower at 119’13.7. The market is quietly awaiting next weeks FOMC meeting (Wed. Sept. 16th). I remain spread long 5 Yr. Notes/short 10 Yr. Notes. This spread is currently trading at 7’19.5 premium the 10 Yr. Note, my objective at the moment is the 6’30 level premium the 10 Yr. Note. Grains: Dec. Corn is currently 1’6 higher at 370’0, Nov. Beans 6’2 higher 885’4 and Dec. Wheat 4’0 higher at 478’6. If you remain long Corn I recommend raising your protective sell stop to 10’0 below the current market. If you remain long Beans I would raise your stop 870’0. We took a loss in Wheat. Cattle: Both Live and Feeder Cattle closed sharply higher yesterday starting an anticipated rebound I have been awaiting the past few weeks. That being said, I must admit that I was stopped out and missed yesterday’s rally. I hope you did better. Silver: Dec. Silver is currently 4 cents lower at 14.71 and Dec. Gold 2.00 lower 1119.00. We remain long a small position in Silver. S&P's: Sept. S&P’s are currently 19.00 higher at 1984.75, rallying along with Asian and European markets as the Japanese Nikkei rallies in excess of 7.0% on economic reports that were not as poor as expectations. We are short from above the 1950.00 level and admittedely may have gone to this well one time too many. We are staying short for the moment. Currencies: As of this writing the Sept. Euro is currently 42 lower at 1.144, the Yen 61 lower at 0.8275 and the Pound32 lower at 1.5362. If you went long the Pound below the 1.5300 level either take profits or use a close stop. Sept. contracts go off the board on 9/14. Our next letter will be quoting Dec. contracts.

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