REPORTS

The Commitment of Traders report out Friday and reflecting activity between 28/02 and 6/03 showed that the Non-Index Funds had reduced their net short position by 36.8K lots to net short 128,802. This was more than we had expected and we suspect much of this short covering took place on the 28^th and subsequently when the market bounced sharply off the lows at 12.82 to trade a high of 13.80 by the 2^nd March. Since the close of the CofT,we have seen an increase in open interest with May NY moving through contract lows, we imagine that those shorts will have been re-instated. So the net result is that the markets so far have not reacted very much and will have to test resistance points at 12.97, 13.17 and the 40 day average now at 13.49 to get some momentum on the upside. Support is at the recent low of 12.75 and then on a weekly c1st month continuation basis at 12.53,12.45 and 11.74.