THIS PUBLICATION CONTAINS THE VIEW AND OPINIONS OF THE AUTHOR, EXCEPT WHERE OPINIONS ARE ATTRIBUTED TO OTHER SOURCES. WRITTEN PERMISSION IS. REQUIRED PRIOR TO ANY DISTRIBUTION OR REPRODUCTION. FUTURES TRADING IS RISKY AND CAN CAUSE SUBSTANTIAL FINANCIAL LOSS. THE USE OF OPTIONS AND OPTION TRADING INVOLVES A HIGH DEGREE OF RISK. THE USE OF STOPS MAY NOT LIMIT LOSSES TO INTENDED AMOUNTS. SPREAD POSITIONS MAY NOT BE LESS RISKY THAN OUTRIGHT FUTURES POSITIONS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. SOURCES ARE BELIEVED TO BE RELIABLE BUT NO ASSURANCE IS MADE FOR ACCURACY. ADDITIONAL RISK DISCLOSURE IS AVAILABLE.

FURTHERMORE HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERANT LIMITATIONS., SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTAION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT , THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSITE. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ADVERSLY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKET IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSLEY AFFECT ACTUAL TRADING RESULTS..

The Morning Comments

12/27/96 5:36:29 AM

Nov Economic Indicators at 8:30 est up.2 % Nov durable Goods est down .1 % Pig Crop at 3:00PM the street est are: All hogs and Pigs est at 99.2 of year ago Kept for Breeding est 102.3 %, kept for market 98.2 %

On the Forex Front:

The March J-Yen has resistance at 8802 then 8857-8862. Sell Dec J-Yen at 8822 with a 30 pt stop. Support is near 8683 where we Would buy for a turn with a tight 20 pt stop.

The March Swiss Franc: Resistance is near 7497 to 7509 then 7555 and 7612. Sell March Swiss at 7502 and use a 20 pt stop. Support comes in around 7412 where we would buy for a bounce a 20 pt stop More support is at 7387. Trade accordingly.

The BPH has Support is near 16650 to 16580. Resistance is near 16890 then 170.10. Take profits on longs into the 168.90 or higher region.

March Dmark has Support at 6417 where we would buy for a turn risk 30 pts. Resistance is near 6462 and 6515.

The Precious Metals:

Feb Gold Support is near 367 to 364 and resistance is near 373 to 378

March Silver has Support at 489 then 482. Resistance is near 494 then 502.

March Copper Support is near the 9865 region then 9745 and 9665. Resistance is near 101.65 then 103.20.

The Exciting Energies

Feb Crude Resistance is near 2552 and 2583 Support is near 2486 then 2434 and 2387.

Feb Heating Oil has Resistance near 7120 and 7190 to 7210. Support is at 6895 and 6840

The Grains:

Jan Beans support is 699 more buyers will show up at 685. Resistance is near 713.
A close over 713 augers for a thrust Into the 727 to 732 region.

March Corn
Resistance is near 270 to 271. Support is at 265 and 260 to 261.
Buy March corn at 265 with a 7 cent stop.

March Wheat Support is at 386 and 377 to 374.
Resistance is at 398 to 401. A close over 401 augurs for a test of 417 to 422

Go long march wheat at 386 1/2 for a bounce, use a 5 cent stop.

Softs..

March cotton
Support is near 7510 to 7530 where we would buy for position with a stop under 7455. Basis the close. Resistance is near 7585 and 7610 then 7660.

In the livestock Sector:

Feb Cattle has support starts at 6462 and 6442 and near 6365. Resistance is near 6522 then 6572 to 6602.A close under 6472 is negative for a pullback to the 6365 region.

Feb Bellies have resistance near 7862 /7872 then 7912 to 7955 with more sellers at 8005 and 8125. Support is near 7777 to 7757 then 7707. A close under 7707 augurs for a failure of 7655.

Feb Hogs resistance is near 7707 to 7742. Support is at 7587 and 7557 then 7532 to 7527. A close under 7570 augurs for a slip into the low 7400’s. Trade accordingly..........Spreaders can Buy June and Sell Feb at 175 or more discount to Feb.

Bonds and the SP500

March Bonds have support at 113-09 then 112-25 with more at 112-15. Resistance is near 113-23 and 114-07 to 114-17.

The March SP500 has support is near 762.35 and 760.10 to 758.80. Resistance is at 766.65 and 767.50 to 768.90.

Happy Trading

Bill

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