I. STOCK INDEXES.................................................................................................................. Page 2 S + P 500 Dow Jones Industrial Average (Cash Index)

10/02/99 Overview: The S+P declined to new lows and then triggered partial stops on the ensuing rebound. Intermediate traders should have liquidated put options on 9/28 & 9/30 (due both to the increased chance for a rebound and evaporating time premium) while short-term traders should have covered ½ their short positions from 1348.80/SPZ at 1293.50/SPZ with gains of almost $14,000/ contract. The remaining ½ are open w/similar gains.

Bonds also declined, stopping out short-term traders with losses of $500-$800/contract. The ongoing forecast for a low near 111-24--30/ USZ in early-October remains intact and could be fulfilled as soon as Monday, 10/04.

The Dollar continued to drop and traders remain short ½ their positions with $2,200-$2,600/ contract in gains while profits of $1,300 - $1,700/ contract should have been taken on the first ½. The Euro rallied as anticipated & the Yen consolidated.

Gold & Silver surged, allowing traders to exit ½ of Gold longs with profits of over $3,000/ contract and ½ with profits of about $3,800/ contract. Silver ended the week with a 2CR lower.

Crude Oil spiked higher & reversed lower during a key week described in the October INSIIDE Track. Soybeans rallied to their weekly LHR & reversed lower, again targeting 466.0/SX.