SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



(Mark One)



x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended June 30, 2004



OR



 ̈ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from
 to



Commission file number: 0-23885



PRUDENTIAL SECURITIES STRATEGIC TRUST

---

(Exact name of
registrant as specified in its charter)



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 13-7075398                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                               | 
|One New York Plaza, 13th Floor, New York, New York             |  | 10292                               
|(Address of principal executive offices)                       |  | (Zip Code)                          



Registrants telephone number, including
area code (212) 778-1000



N/A

---

Former name, former address and former fiscal year, if changed since last report



Indicate by check Ö whether the Registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.  Yes   Ö  No



Indicate by check Ö whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes    No  Ö



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PART I. FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

PRUDENTIAL SECURITIES STRATEGIC TRUST

(a Delaware Business Trust)



STATEMENTS OF FINANCIAL CONDITION

(Unaudited)



|                                                                    |  |              |           |                  |   |          
|------------------------------------------------------------------- |  | ------------ | --------- | ---------------- | - | ---------
|                                                                    |  | June 30,2004 |           | December 31,2003
|                                                                    |  |             
|ASSETS                                                              |  |              |           |                  |   |          
|                                                                    |  |             
|Cash in commodity trading accounts                                  |  | $            | 7,228,065 |                  | $ | 7,969,620
|                                                                    |  |             
|Net unrealized gain on open futures contracts                       |  |              | 1,182     |                  |   | 274,531  
|                                                                    |  |             
|Net unrealized gain on open forward contracts                       |  |              | 647       |                  |   |         
|                                                                    |  |             
|Other receivables                                                   |  |              | 1,270     |                  |   | 2,222    
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Total assets                                                        |  |              | 7,231,164 |                  |   | 8,246,373
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|LIABILITIES AND TRUST CAPITAL                                       |  |              |           |                  |   |          
|                                                                    |  |             
|Liabilities                                                         |  |              |           |                  |   |          
|                                                                    |  |             
|Redemptions payable                                                 |  | $            | 63,963    |                  | $ | 86,425   
|                                                                    |  |             
|Incentive fees payable                                              |  |              |          |                  |   | 9,826    
|                                                                    |  |             
|Management fees payable                                             |  |              | 8,497     |                  |   | 9,868    
|                                                                    |  |             
|Accounts payable                                                    |  |              | 1,651     |                  |   | 191      
|                                                                    |  |             
|Net unrealized loss on open forward contracts                       |  |              |          |                  |   | 416      
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Total liabilities                                                   |  |              | 74,111    |                  |   | 106,726  
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Commitments                                                         |  |              |           |                  |   |          
|                                                                    |  |             
|Trust capital                                                       |  |              |           |                  |   |          
|                                                                    |  |             
|Limited interests (73,883.622 and 78,447.463 interests outstanding) |  |              | 7,085,445 |                  |   | 8,058,219
|                                                                    |  |             
|General interests (747 and 793 interests outstanding)               |  |              | 71,608    |                  |   | 81,428   
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Total trust capital                                                 |  |              | 7,157,053 |                  |   | 8,139,647
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Total liabilities and trust capital                                 |  | $            | 7,231,164 |                  | $ | 8,246,373
|                                                                    |  |              |           |                  |   |          
|                                                                    |  |             
|Net asset value per limited and general interest                    |  | $            | 95.90     |                  | $ | 102.72   
|                                                                    |  |              |           |                  |   |          

---

The accompanying notes are an integral part of these
statements.



2



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PRUDENTIAL SECURITIES STRATEGIC TRUST

(a Delaware Business Trust)



CONDENSED SCHEDULES OF INVESTMENTS

(Unaudited)



|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|-------------------------------------------------- |  | ------------------------------------------------ | -- |  | ------------------------- | ------- | - | ----------------------------------------------- | ----- | -- | ------------------------- | - | -------- | -
|                                                   |  | June 30, 2004                                    |    |  | December 31, 2003         |        
|Futures and Forward Contracts                      |  | Net UnrealizedGain (Loss) as a % ofTrust Capital |    |  | Net UnrealizedGain (Loss) |         |   | Net UnrealizedGain (Loss)as a % ofTrust Capital |       |    | Net UnrealizedGain (Loss) |  
|Futures contracts purchased:                       |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Stock indices                                      |  |                                                  |    |  | $                         | 6,787   |   |                                                 |       |    |                           | $ |         |  
|Interest rates                                     |  |                                                  |    |  |                           | 30,783  |   |                                                 |       |    |                           |   | 228,064  |  
|Currencies                                         |  |                                                  |    |  |                           | 20,883  |   |                                                 |       |    |                           |   | 131,469  |  
|Commodities                                        |  |                                                  |    |  |                           | 36,988  |   |                                                 |       |    |                           |   | 316,639  |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Net unrealized gain on futures contracts purchased |  | 1.33                                             | %  |  |                           | 95,441  |   |                                                 | 8.30  | %  |                           |   | 676,172  |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Futures contracts sold:                            |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Stock indices                                      |  |                                                  |    |  | $                         | (5,859  | ) |                                                 |       |    |                           | $ |         |  
|Interest rates                                     |  |                                                  |    |  |                           | (33,259 | ) |                                                 |       |    |                           |   | (166,195 | )
|Currencies                                         |  |                                                  |    |  |                           | (17,757 | ) |                                                 |       |    |                           |   | (45,127  | )
|Commodities                                        |  |                                                  |    |  |                           | (37,384 | ) |                                                 |       |    |                           |   | (190,319 | )
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Net unrealized loss on futures contracts sold      |  | (1.32                                            | )  |  |                           | (94,259 | ) |                                                 | (4.93 | )  |                           |   | (401,641 | )
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Net unrealized gain on futures contracts           |  | 0.01                                             | %  |  | $                         | 1,182   |   |                                                 | 3.37  | %  |                           | $ | 274,531  |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Forward currency contracts purchased               |  | (0.04                                            | )% |  | $                         | (2,759  | ) |                                                 | (0.01 | )% |                           | $ | (416     | )
|Foreign currency contracts sold                    |  | 0.05                                             |    |  |                           | 3,406   |   |                                                 |      |    |                           |   |         |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Net unrealized gain (loss) on forward contracts    |  | 0.01                                             | %  |  | $                         | 647     |   |                                                 | (0.01 | )% |                           | $ | (416     | )
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Settlement CurrencyFutures Contracts              |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Australian dollar                                  |  | (0.18                                            | )% |  | $                         | (12,553 | ) |                                                 | (0.11 | )% |                           | $ | (8,880   | )
|British pound                                      |  | (0.17                                            | )  |  |                           | (12,227 | ) |                                                 | (1.03 | )  |                           |   | (83,696  | )
|Canadian dollar                                    |  | (0.14                                            | )  |  |                           | (9,942  | ) |                                                 | 0.22  |    |                           |   | 17,721   |  
|Euro                                               |  | 0.27                                             |    |  |                           | 19,507  |   |                                                 | 1.34  |    |                           |   | 109,320  |  
|Japanese Yen                                       |  | 0.37                                             |    |  |                           | 26,118  |   |                                                 | (0.04 | )  |                           |   | (2,976   | )
|Swedish krona                                      |  | (0.17                                            | )  |  |                           | (11,976 | ) |                                                 | (0.04 | )  |                           |   | (3,141   | )
|Swiss franc                                        |  | 0.01                                             |    |  |                           | 964     |   |                                                 | (0.06 | )  |                           |   | (4,688   | )
|U.S. dollar                                        |  | 0.02                                             |    |  |                           | 1,291   |   |                                                 | 3.09  |    |                           |   | 250,871  |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Total                                              |  | 0.01                                             | %  |  | $                         | 1,182   |   |                                                 | 3.37  | %  |                           | $ | 274,531  |  
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Settlement CurrencyForward Contracts              |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  
|Canadian dollar                                    |  | 0.01                                             | %  |  | $                         | 647     |   |                                                 | (0.01 | )% |                           | $ | (416     | )
|                                                   |  |                                                  |    |  |                           |         |   |                                                 |       |    |                           |   |          |  

---

The accompanying notes are an integral part of these
statements.



3



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PRUDENTIAL SECURITIES STRATEGIC TRUST

(a Delaware Business Trust)



STATEMENTS OF OPERATIONS

(Unaudited)



|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|-------------------------------------------------------------------- |  | ------------------------ | -------- | - | -------------------------- | - | --------- | ---- |  | - | -------- | - |  | - | ------- | -
|                                                                     |  | Six months endedJune 30, |          |   | Three months endedJune 30, |  
|                                                                     |  | 2004                     |          |   | 2003                       |   |           | 2004 |  |   | 2003     |  
|REVENUES                                                             |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Net realized gain (loss) on commodity transactions                   |  | $                        | 157,887  |   |                            | $ | 1,081,076 |      |  | $ | (202,687 | ) |  | $ | 679,295 |  
|Change in net unrealized gain/loss on open commodity positions       |  |                          | (272,286 | ) |                            |   | (205,531  | )    |  |   | (458,426 | ) |  |   | (66,443 | )
|Interest income                                                      |  |                          | 40,308   |   |                            |   | 55,050    |      |  |   | 19,059   |   |  |   | 27,172  |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|                                                                     |  |                          | (74,091  | ) |                            |   | 930,595   |      |  |   | (642,054 | ) |  |   | 640,024 |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|EXPENSES                                                             |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Commissions                                                          |  |                          | 295,143  |   |                            |   | 306,041   |      |  |   | 143,511  |   |  |   | 151,614 |  
|Management fees                                                      |  |                          | 56,526   |   |                            |   | 55,772    |      |  |   | 26,338   |   |  |   | 30,468  |  
|Incentive fees                                                       |  |                          | 88,024   |   |                            |   | 1,787     |      |  |   |         |   |  |   | 1,787   |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|                                                                     |  |                          | 439,693  |   |                            |   | 363,600   |      |  |   | 169,849  |   |  |   | 183,869 |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Net income (loss)                                                    |  | $                        | (513,784 | ) |                            | $ | 566,995   |      |  | $ | (811,903 | ) |  | $ | 456,155 |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|ALLOCATION OF NET INCOME (LOSS)                                      |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Limited interests                                                    |  | $                        | (508,635 | ) |                            | $ | 561,314   |      |  | $ | (803,770 | ) |  | $ | 451,590 |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|General interests                                                    |  | $                        | (5,149   | ) |                            | $ | 5,681     |      |  | $ | (8,133   | ) |  | $ | 4,565   |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|NET INCOME (LOSS) PER WEIGHTED AVERAGE LIMITED AND GENERAL INTEREST  |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Net income (loss) per weighted average limited and general interest  |  |                          | (6.67    | ) |                            | $ | 6.22      |      |  | $ | (10.71   | ) |  | $ | 5.18    |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  
|Weighted average number of limited and general interests outstanding |  |                          | 77,017   |   |                            |   | 91,146    |      |  |   | 75,804   |   |  |   | 88,113  |  
|                                                                     |  |                          |          |   |                            |   |           |      |  |   |          |   |  |   |         |  

---



STATEMENT OF CHANGES IN TRUST CAPITAL

(Unaudited)



|                                |  |            |   |  |                  |           |   |                  |   |        |       |  |   |           |  
|------------------------------- |  | ---------- | - |  | ---------------- | --------- | - | ---------------- | - | ------ | ----- |  | - | --------- | -
|                                |  | INTERESTS  |   |  | LIMITEDINTERESTS |           |   | GENERALINTERESTS |   |        | TOTAL | 
|Trust capitalDecember 31, 2003 |  | 79,240.463 |   |  | $                | 8,058,219 |   |                  | $ | 81,428 |       |  | $ | 8,139,647 |  
|Net loss                        |  |            |   |  |                  | (508,635  | ) |                  |   | (5,149 | )     |  |   | (513,784  | )
|Redemptions                     |  | (4,609.841 | ) |  |                  | (464,139  | ) |                  |   | (4,671 | )     |  |   | (468,810  | )
|                                |  |            |   |  |                  |           |   |                  |   |        |       |  |   |           |  
|Trust capitalJune 30, 2004     |  | 74,630.622 |   |  |                  | 7,085,445 |   |                  | $ | 71,608 |       |  | $ | 7,157,053 |  
|                                |  |            |   |  |                  |           |   |                  |   |        |       |  |   |           |  

---

The accompanying notes are an integral part of these
statements.



4



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PRUDENTIAL SECURITIES STRATEGIC TRUST

(a Delaware Business Trust)



NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2004

(Unaudited)



A. General



These financial statements have been prepared without audit. In the opinion of
Prudential Securities Futures Management Inc. (the Managing Owner), the financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Prudential
Securities Strategic Trust (the Trust) as of June 30, 2004 and December 31, 2003 and the results of its operations for the six and three months ended June 30, 2004 and 2003. However, the operating results for the interim periods may not
be indicative of the results expected for the full year.



Certain
information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes thereto included in the Trusts Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2003.



On July 1, 2003, Prudential Financial, Inc. (Prudential) and Wachovia
Corp. (Wachovia) combined their separate retail securities brokerage and clearing businesses under a new holding company named Wachovia/Prudential Financial Advisors, LLC (WPFA), owned 62% by Wachovia and 38% by Prudential.
As a result, the retail brokerage operations of Prudential Securities Incorporated (PSI) were contributed to Wachovia Securities, LLC (Wachovia Securities). Wachovia Securities is wholly-owned by WPFA and is a registered
broker-dealer and a member of the National Association of Securities Dealers, Inc. (NASD) and all major securities exchanges. The Trust and its managing owner, Prudential Securities Futures Management Inc., entered into a service
agreement with Wachovia Securities, effective July 1, 2003. Pursuant to this agreement, Wachovia Securities agrees to provide certain enumerated services to accounts of the limited interest owners carried at Wachovia. Effective July 1, 2003, PSI
changed its name to Prudential Equity Group, Inc. Effective February 2, 2004, Prudential Equity Group Inc. was converted to a limited liability company named Prudential Equity Group LLC (PEG). PEG remains an indirectly wholly-owned
subsidiary of Prudential. PEG was a registered broker-dealer and a member of the NASD and all major securities exchanges and conducted the equity research, domestic and international equity sales and trading operations, and commodity brokerage and
derivative operations it had previously conducted as PSI until December 31, 2003. As part of the process of reorganizing its business structure, Prudential Securities Group Inc. (PSG), the direct parent of PEG and a wholly-owned
subsidiary of Prudential, transferred the commodity brokerage, commodity clearing and derivative operations previously performed by PEG to another PSG indirect wholly-owned subsidiary, Prudential Financial Derivatives, LLC (PFD)
effective January 1, 2004. PFD is registered as a futures commission merchant under the Commodity Exchange Act and is a member of the National Futures Association. On April 1, 2004, PEG transferred the ownership of the Managing Owner and PFDS
Holdings, LLC, the direct percent of PFD, to PSG.



As of January 31,
2003 Gamma was terminated as a trading manager to the Trust. On February 11, 2003 the Managing Owner and the Trust entered into an advisory agreement with Graham Capital Management, L.P. (Graham) to manage a portion of the Trusts
assets. Pursuant to the advisory agreement, Graham is to be paid a monthly management fee equal to 1/6of 1%
(approximately 2% annually) and an incentive fee of 20% of the New High Net Trading Profits on the portion of Trust assets allocated to Graham, the same as was paid to Gamma. Graham does not have to recoup Gammas cumulative trading
losses before earning any incentive fees. The Trust did not incur commissions and management fees from the period February 1, 2003 to February 13, 2003 on the portion of assets unallocated to trading (i.e. the portion of assets previously managed by
Gamma). The advisory agreement may be terminated for a variety of reasons, including at the discretion of the Managing Owner.



On June 30, 2004, PSG and Preferred Investment Solutions Corp., formerly Kenmar Advisory Corp. (Preferred) entered into a Stock Purchase Agreement,
pursuant to which PSG will sell, and Preferred will buy, all of the capital stock of the Managing Owner and another commodity pool operator owned by PSG.



5



---

In connection with the transaction, the Managing Owner is soliciting proxies seeking approval from the Trusts interestholders for (i) the sale of the stock of
the Managing Owner to Preferred; (ii) the concomitant approval of Preferred as the new managing owner of the Trust; and (iii) the approval of certain amendments to the Amended and Restated Declaration of Trust and Trust Agreement of the Trust dated
January 31, 1996. A Report on Form 8-K describing the transaction was filed with the Securities and Exchange Commission on July 1, 2004 and the definitive proxies were filed with the Securities and Exchange Commission on July 20, 2004.



B. Related Parties



The Managing Owner is a wholly-owned subsidiary of PSG, which, in turn, is an indirect wholly-owned subsidiary of Prudential. The
Managing Owner or its affiliates perform services for the Trust, which include, but are not limited to: brokerage services; accounting and financial management; registrar, transfer and assignment functions; investor communications; printing and
other administrative services. Except for costs related to brokerage services, PEG or its affiliates bear the costs of these services, as well as the Trusts routine operational, administrative, legal and auditing costs, and costs paid to
organize the Trust and offer its Interests.



The costs charged to the
Trust for brokerage services for the six months ended June 30, 2004 and 2003 were $295,143 and $306,041, respectively, and for the three months ended June 30, 2004 and 2003 were $143,511 and $151,614, respectively.



The Trusts assets are maintained either in trading or cash accounts at PFD or,
for margin purposes, with the various exchanges on which the Trust is permitted to trade. PFD credits the Trust monthly with 80% of the interest it earns on the average net assets in the Trusts accounts and retains the remaining 20%.



The Trust, acting through its trading managers, executes
over-the-counter, spot, forward and/or option foreign exchange transactions with PFD. PFD then engages in back-to-back trading with an affiliate, Prudential-Bache Global Markets, Inc. (PBGM). PBGM attempts to earn a profit on such
transactions. PBGM keeps its prices on foreign currency competitive with other interbank currency trading desks. All over-the-counter currency transactions are conducted between PFD and PBGM pursuant to a line of credit. PFD may require that
collateral be posted against the marked-to-market position of the Trust.



As of June 30, 2004, a non-U.S. affiliate of the Managing Owner owned 116.497 limited interests of the Trust.



C. Derivative Instruments and Associated Risks



The Trust is exposed to various types of risks associated with the derivative instruments and related markets in which it invests. These risk include, but are not
limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of the Trusts investment activities (credit risk).



Market Risk



Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or
sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Trusts net assets being traded, significantly exceeds the Trusts future cash requirements
since the Trust intends to close out its open positions prior to settlement. As a result, the Trust is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Trust considers the fair
value of its futures and forwards to be the net unrealized gain or loss on the contracts. The market risk associated with the Trusts commitments to purchase commodities is limited to the gross or face amount of the contracts held.
However, when the Trust enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contract at prevailing market prices or settle in cash. Since the
repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes the Trust to unlimited risk.



Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of
interest rates, foreign currency exchange rates, the diversification effects among the derivative instruments the Trust holds and the liquidity and inherent volatility of the markets in which the Trust trades.



6



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Credit Risk



When entering into futures and forward contracts, the Trust is exposed to credit risk that the counterparty to the contract will not meet its obligations. The
counterparty for futures contracts traded on United States and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share
any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is
normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions entered into by the Trust as PFD, the Trusts commodity broker, is the sole counterparty. The Trust
has entered into a master netting agreement with PFD and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the statements of financial condition. The amount at risk associated with
counterparty non-performance of all of the Trusts contracts is the net unrealized gain included in the statements of financial condition; however, counterparty nonperformance on only certain of the Trusts contracts may result in greater
loss than nonperformance on all of the Trusts contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Trust.



The Managing Owner attempts to minimize both credit and market risks by requiring the Trust and its trading managers to abide by
various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies which, include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the
amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions. Additionally, pursuant
to the advisory agreements among the Trust, the Managing Owner and each trading manager, the Trust shall automatically terminate a trading manager if the net asset value allocated to that trading manager declines by 331/3% from the value at the beginning of any year or since the initial allocation of assets to that trading manager. Furthermore,
the Second Amended and Restated Declaration of Trust and Trust Agreement provides that the Trust will liquidate its positions, and eventually dissolve, if the Trust experiences a decline in the net asset value of 50% from the value at the beginning
of any year or since the commencement of trading activities. In each case, the decline in net asset value is after giving effect for distributions and redemptions. The Managing Owner may impose additional restrictions (through modifications of
trading limitations and policies) upon the trading activities of the trading managers as it, in good faith, deems to be in the best interest of the Trust.



PFD, when acting as the Trusts futures commission merchant in accepting orders for the purchase or sale of domestic futures
contracts, is required by Commodity Futures Trading Commission (CFTC) regulations to separately account for and segregate as belonging to the Trust all assets of the Trust relating to domestic futures trading and is not allowed to
commingle such assets with other assets of PFD. At June 30, 2004 and December 31, 2003, such segregated assets totalled $2,024,787 and $2,989,530, respectively. Part 30.7 of the CFTC regulations also requires PFD to secure assets of the Trust
related to foreign futures trading, which totalled $5,204,460 and $5,254,623 at June 30, 2004 and December 31, 2003, respectively. There are no segregation requirements for assets related to forward trading.



As of June 30, 2004, all of the Trusts open futures and forward contracts mature
within 18 months.



7



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D. Financial Highlights



|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|----------------------------------------------------------------------------------------- |  | -------------------------------- | ------ | -- | ---------------------------------- | - | ----- | ---- |  | - | ------ | -- |  | - | ----- | --
|                                                                                          |  | For the Six Monthsended June 30, |        |    | For the Three Monthsended June 30, |  
|                                                                                          |  | 2004                             |        |    | 2003                               |   |       | 2004 |  |   | 2003   |   
|Performance per Interest                                                                  |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net asset value, beginning of period                                                      |  | $                                | 102.72 |    |                                    | $ | 87.29 |      |  | $ | 106.55 |    |  | $ | 88.16 |   
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net realized gain (loss) and change in net unrealized gain/loss on commodity transactions |  |                                  | (1.65  | )  |                                    |   | 9.31  |      |  |   | (8.66  | )  |  |   | 6.85  |   
|Interest income                                                                           |  |                                  | 0.52   |    |                                    |   | 0.60  |      |  |   | 0.25   |    |  |   | 0.31  |   
|Expenses                                                                                  |  |                                  | (5.69  | )  |                                    |   | (3.96 | )    |  |   | (2.24  | )  |  |   | (2.08 | ) 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net increase (decrease) for the period                                                    |  |                                  | (6.82  | )  |                                    |   | 5.95  |      |  |   | (10.65 | )  |  |   | 5.08  |   
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net asset value, end of period                                                            |  | $                                | 95.90  |    |                                    | $ | 93.24 |      |  | $ | 95.90  |    |  | $ | 93.24 |   
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Total return (non-annualized):                                                            |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Total return before incentive fees                                                        |  |                                  | (5.51  | )% |                                    |   | 6.84  | %    |  |   | (10.00 | )% |  |   | 5.78  | % 
|Incentive fees                                                                            |  |                                  | (1.13  | )  |                                    |   | (0.02 | )    |  |   |       |    |  |   | (0.02 | ) 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Total return after incentive fees                                                         |  |                                  | (6.64  | )% |                                    |   | 6.82  | %    |  |   | (10.00 | )% |  |   | 5.76  | % 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Ratios to average net assets:                                                             |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net investment loss before incentive fees** (annualized)                                  |  |                                  | (8.01  | )% |                                    |   | (7.38 | )%   |  |   | (8.01  | )% |  |   | (7.68 | )%
|Incentive fees (non-annualized)                                                           |  |                                  | (1.13  | )  |                                    |   | (0.02 | )    |  |   |       |    |  |   | (0.02 | ) 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Net investment loss after incentive fees                                                  |  |                                  | (9.14  | )% |                                    |   | (7.40 | )%   |  |   | (8.01  | )% |  |   | (7.70 | )%
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|                                                                                          |  |                                  |        |   
|Interest income (annualized)                                                              |  |                                  | 1.04   | %  |                                    |   | 1.33  | %    |  |   | 1.01   | %  |  |   | 1.35  | % 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|                                                                                          |  |                                  |        |   
|Expenses before incentive fees (annualized)                                               |  |                                  | 9.05   | %  |                                    |   | 8.71  | %    |  |   | 9.02   | %  |  |   | 9.02  | % 
|Incentive fees (non-annualized)                                                           |  |                                  | 1.13   |    |                                    |   | 0.02  |      |  |   |       |    |  |   | 0.02  |   
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   
|Total expenses after incentive fees                                                       |  |                                  | 10.18  | %  |                                    |   | 8.73  | %    |  |   | 9.02   | %  |  |   | 9.04  | % 
|                                                                                          |  |                                  |        |    |                                    |   |       |      |  |   |        |    |  |   |       |   

---

|** | Represents interest income less total expenses (exclusive of incentive fees). The Managing Owner believes that the disclosure of the ratio of net investment loss to average net assets as
required under the AICPA Audit Guide For Investment Companies is not a meaningful or appropriate measure for the Trust as it is not a portfolio designed to return investment income. The Managing Owner believes that the total return ratio is the
appropriate ratio as it also considers the Trusts commodity trading gains/losses.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



These financial highlights represent the overall results of the Trust for the six and three months ended June 30, 2004 and 2003. An individual limited owners
actual results may differ depending on the timing of redemptions.



8



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PRUDENTIAL SECURITIES STRATEGIC TRUST

(a Delaware Business Trust)



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS



Critical Accounting Policies



Preparation of the financial statements and related disclosures in compliance with accounting principles generally accepted in the
United States of America requires the application of appropriate accounting rules and guidance, as well as the use of estimates. The Trusts application of these policies involves judgments and actual results may differ from the estimates used.



The Managing Owner has evaluated the nature and types of estimates that
it makes in preparing the Trusts financial statements and related disclosures and has determined that the valuation of its investments which are not traded on a United States or Internationally recognized futures exchange involves a critical
accounting policy. The values used by the Trust for open forward positions are provided by its commodity broker, PFD, who uses market prices when available, while over-the-counter derivative financial instruments, principally forwards, options and
swaps are valued based on the present value of estimated future cash flows that would be received from or paid to a third party in settlement of these derivative contracts prior to their delivery date.



As such, if actual results vary from estimates used, they are anticipated to not have
a material impact on the financial statements and related disclosures.



Liquidity and
Capital Resources



The Trust commenced operations on May 1, 1996
with gross proceeds of $12,686,200 allocated to commodities trading. Additional Interests were offered monthly at the then current net asset value per Interest until the continuous offering period expired on January 31, 1998. Additional
contributions made during the continuous offering period totalled $51,242,700 including $375,000 of contributions from the Managing Owner.



The Trust Agreement provides that an interest holder may redeem its interests as of the last day of any month at the then current net asset value per Interest.
Redemptions of limited interests for the six and three months ended June 30, 2004 were $464,139 and $180,759, respectively. Redemptions of general interests for the six and three months ended June 30, 2004 were $4,671 and $1,850, respectively.
Redemptions of limited and general interests from May 1, 1996 (commencement of operations) to June 30, 2004 were $55,513,480 and $449,032, respectively. Future redemptions will impact the amount of funds available for investment in commodity
contracts in subsequent periods.



At June 30, 2004, 100% of the
Trusts net assets were allocated to commodities trading. A significant portion of the net assets of the Trust are held in cash, which is used as margin for the Trusts trading in commodities. Inasmuch as the sole business of the Trust is
to trade in commodities, the Trust continues to own such liquid assets to be used as margin. PFD credits the Trust monthly with 80% of the interest it earns on the average net assets in these accounts and retains the remaining 20%.



The commodities contracts are subject to periods of illiquidity because of market
conditions, regulatory considerations and other reasons. For example, some commodity exchanges limit fluctuations in commodity futures contract prices during a single day by regulations referred to as daily limits. During a single day,
no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor
liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Trust
from promptly liquidating its commodity futures positions.



Since the
Trusts business is to trade futures and forward contracts, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). The
Trusts exposure to market risk is influenced by a number of factors, including the volatility on interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationships among the
contracts held. The inherent uncertainty of



9



---

the Trusts speculative trading, as well as the development of drastic market occurrences, could result in monthly losses considerably beyond the Trusts
experience to date and could ultimately lead to a loss of all or substantially all of investors capital. The Managing Owner attempts to minimize these risks by requiring the Trusts trading managers to abide by various trading limitations
and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. See Note C to the financial statements for a further discussion of the credit and market risks associated with the
Trusts futures and forward contracts.



The Trust does not have,
nor does it expect to have, any capital assets.



Off-Balance Sheet Arrangements and
Contractual Obligations



As of June 30, 2004, the Trust had not
utilized special purpose entries to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business which
may include indemnification provisions related to certain risks services providers, such as our accountants, undertake in performing services which are in the best interests of the Trust. While the Trusts exposure under such indemnification
provisions can not be estimated, these general business indemnifications are not expected to have a material impact on the Trusts financial position.



The Trusts contractual obligations are with the Trading Advisor and its commodity broker. Payments made under the Trusts agreement with the Trading
Advisor are at a fixed rate, calculated as a percentage of the Trusts New High Net Trading Profits. Management fee payments made to the Trading Advisor and commission payments to the commodity broker are calculated as a fixed
percentage of the Trusts net asset values (NAVs). As such, the Managing Owner cannot anticipate the amount of payments that will be required under these agreements for future periods as NAVs are not known until a future
date. These agreements are effective for one-year terms, renewable automatically for additional one-year terms unless terminated. Additionally, these agreements may be terminated by either party for various reasons. For a further discussion on these
payments, see Notes A & C of the Trusts 2003 Annual Report.



Results of
Operations



The net asset value per interest as of June 30, 2004 was
$95.90, a decrease of 6.64% from the December 31, 2003 net asset value per Interest of $102.72 and a decrease of 10.00% from the March 31, 2004 net asset value per interest of $106.55. Past performance is not necessarily indicative of future
results.



The Trusts gross trading losses were $114,000 and
$661,000 during the six and three months ended June 30, 2004 compared to trading gains of $876,000 and $613,000 for the corresponding period in the prior year. Due to the nature of the Trusts trading activities, a period to period comparison
of its trading results is not meaningful. However, a detailed discussion of the Trusts current quarter trading results is presented below.



Quarterly Market Overview



U.S. economic activity in the second quarter of 2004 was marked by steady improvement in the first two months followed by a slowdown towards the end of June. The
second quarter began with a reported March non-farm payroll increase of over 308,000 when the market consensus expected a change of 120,000. Despite concerns over instability in the Middle East and increased energy prices, manufacturing activity
increased throughout the quarter to result in a third straight quarter of growth. In contrast, industrial production fell 0.3% in June, the greatest decline since April 2003, after rising steadily in April and May. Orders for durable goods also
diminished throughout the quarter as inventories grew. Businesses added a quarter of a million jobs in May topping off a nine-month hiring spree that abated in June. Unemployment remained stable throughout the quarter at around 5.6%. Despite a
stabilization in the number of layoffs, employment growth, pay increases and the number of hours worked shrank in June and resulted in increased pressure on consumers. Consumer spending accelerated throughout April and May resulting in the highest
consumer confidence ratings in two years on the back of income growth and an improved job market. The possibility of the U.S. Federal Reserve (the Fed) increasing interest rates, led to a jump in home sales as buyers looked to lock in
lower interest rates. Retail sales rose a mild 0.6% in April and a record 1.2% in May as buyers loaded up on foreign-made cars, televisions, furniture and clothes. In June, auto sales cooled as May incentives expired and major retailers blamed high
fuel prices and unseasonably cool weather for the biggest drop in 16 months.



10



---

Global economies around the world continued to benefit from the strengthening U.S. economy. European investors
remained concerned about rising U.S. interest rates, issues in Iraq, and high oil prices while benefiting from better corporate earnings. France, the largest euro economy, reported increased spending in May. In April, consumer confidence and
manufacturing activity declined in Germany, the second largest euro economy, and its economy remained weak throughout the quarter. The European Union blamed rising oil prices for an increase in inflation in May and consumer confidence dropped
slightly as business optimism remained unstable. In order to cool its overheating economy, the Chinese government reduced available domestic credit and money supply creating uncertainty in the markets. Industrial growth and profits in China slowed
even as foreign investment continued to surge. The Japanese government cited steady consumption, employment, and core consumer prices as the reasons behind the best economy it has had in over 20 years. As a major commodity exporter to China,
Brazils economy dampened on the heels of Chinas deceleration while Mexicos economy stayed positive due to its alliance with the U.S. economy.



Indices: All three major U.S. equity indices ended the second quarter with positive returns. The NASDAQ Composite had the highest rate of return of +2.69%,
followed by the S&P 500 Index with +1.72%, and the Dow Jones Industrial Average with +0.75%. Investor fears of the sustainability of continued higher growth rates and strong earnings as seen in 2003 resulted in constant price reverses as indices
traded within specific ranges. Globally, Asian stocks performed particularly poorly with the benchmark indices in South Korea, Taiwan, and China all falling more than 10%. Japans Tokyo Nikkei Stock Index fared better returning +1.2% for the
quarter because of Japans continued economic recovery. Although the European economies continue to lag behind Asia and the U.S., their stock markets held up better. The Paris CAC 40 Index was up 3%, while the London FTSE 100 Index rose 2%, and
the German DAX advanced 5%.



Interest rates: Bonds showed losses for the
second quarter of 2004. The main factors that drove these losses were the U.S. economy, job market, and inflation. The second quarter began with a reported March non-farm payroll increase of over 308,000 when the market consensus expected a change
of 120,000. This surprisingly large employment number quickly dispelled any notion that traders may have had that the Fed would keep interest rates unchanged. Inflation fears also drove down bond prices late in the quarter as the price of oil and
other commodities surpassed previous highs. The quarter ended with the Fed raising interest rates by 25 basis points. In the European Union, the bund market traded within specific ranges and did not have the volatility of the U.S. bond markets
because of the steadier monetary policy being employed by the European Central Bank (ECB). On the other hand, the Japanese Government Bond (JGB) market saw significant increase in yields. Being in the middle of a strong and prolonged economic
recovery, capital started to move out of the Japanese bond market and into equities.



Currencies: Increased volatility and choppy market conditions dominated this sector in the second quarter. The surprise in the non-farm payroll employment number carried over to the currency market. The expectations of a
stronger economy helped to strengthen the US dollar against European currencies. This resulted in reversals of established trends and losses in established currency positions. The trading environment during the second quarter was characterized by
limited longer-term changes in price coupled with strong reversals that made it very difficult to trade effectively. Although there have been no government interventions since the first quarter, the relatively high level of volatility has continued
throughout the second quarter with no long-term trends developing.



Energies: Demand for energy remained strong throughout the second quarter leading to higher prices. Energy markets were characterized by strong trends and not the result of short-term speculation. Strong world demand due to economic growth,
especially in China where crude oil imports hit a record 2.8 million barrels per day in June, pushed crude oil to all time highs on the NYMEX. Persistent higher prices were also a product of a significant geopolitical risk premium that existed
because of supply shocks from events in the Middle East. Higher demand and higher risk had pushed oil above $40/barrel earlier in the year and this price level continued to the end of the quarter.



Metals: The first quarter saw a significant upswing in base metal prices from strong
world demand, especially from China. However, the second quarter began with concerns of an overheating economy in China that resulted in Chinese monetary policy changes aimed at controlling the growth in credit. Chinas central bank raised the
percentage of capital that banks are required to have in reserve by 50 basis points. Expectation of lower demand from China caused swift reversals in base metals. Nevertheless as the



11



---

quarter proceeded demand for base metals continued to be strong. In the precious metals markets, silver gave back gains from the first quarter with the change in
growth expectations in the U.S. Gold moved higher accompanied by higher volatility that saw short-term swings in prices.



Grains: The grain sector experienced key reversals in the second quarter. Corn and soybean prices rose early in the quarter on higher demand expectations and
growing problems in key growing areas. However, strong rainfall during the spring season and a relatively cool and dry early summer season have caused harvest expectations to improve. Thus, expectations of a higher yield for the late summer growing
season have pushed prices down.



Softs: After a run up in prices
throughout February and March, prices began to decline in the second quarter. Initial worries of flooding gave way to milder weather that helped this years crop. The price of cotton declined throughout the second quarter. Additionally, cocoa
declined throughout the second quarter. Coffee prices climbed higher after an initial decrease in May. However, there was a sharp reversal in June that erased any gains due to improved weather conditions in Brazil.



Quarterly Trust Performance



The following is a summary of performance for the major sectors in which the Trust traded:



Currencies (-): Increased volatility and sharp reversals over short time periods
created choppy market conditions that were difficult for long-term trend followers to trade. Losses accumulated in the Japanese Yen/US dollar and Aussie dollar/US dollar positions.



Metals (-): Changing monetary policy in China to prevent Chinas economy from overheating lowered demand expectations for base
metals and resulted in falling prices. Net long positions in gold, nickel, copper, and aluminum resulted in losses.



Indices (-): World stock indices had mixed performance in the second quarter. U.S. and European indices were up while Far East markets were down with the exception
of Japan. Short positions in the Japanese Nikkei index and TSE TOPIX index resulted in losses.



Grains (-): Concerns of weather conditions early in the second quarter sent corn, soybean, and wheat prices higher. However, as the growing season progressed,
weather conditions became more favorable and increased yield expectations sent prices lower. Net long positions in wheat and corn resulted in losses.



Interest Rates (-): U.S. bond prices fell due to the threat of inflation, an upside surprise in the job market, a recovering economy, and the Fed raising interest
rates by 25 basis points. Net long European and U.S. bonds positions resulted in net losses.



Energies (+): Continued world demand for energy supported higher prices throughout the second quarter. Crude oil prices hit an all time high on the NYMEX as a result of strong demand and geopolitical risk premiums. Long
positions in unleaded gas, light crude, and crude oil all resulted in gains.



Softs (+): Downward reversals in cocoa and cotton prices resulted in net gains in short cotton and cocoa positions.



Decreases in the overall average net asset levels of the Trust have led to corresponding decreases in interest earned, as well as commissions incurred by the Trust,
which are largely based on the level of net assets. The Trusts average net asset levels were lower during the six and three months ended June 30, 2004 as compared to the corresponding periods in the prior year, primarily due to redemptions.



Interest income is earned on the equity balances held at PFD and,
therefore, varies weekly according to interest rates, trading performance and redemptions. Interest income decreased by $15,000 and $8,000 for the six and three months ended June 30, 2004 as compared to the corresponding periods in 2003. This
decrease was primarily due to lower interest rates during the first six months of 2004 as compared to the first six months of 2003, as well as the decline in average net asset levels as discussed above.



Commissions are calculated on the Trusts net asset value at the beginning of
each month and, therefore, vary according to trading performance and redemptions. Commissions decreased by $11,000 and $8,000 for the six and three months ended June 30, 2004 as compared to the corresponding periods in 2003. This decrease was due to
the decline in average net asset levels as discussed above and, to a lesser extent, the change in trading advisors as discussed further in Note A.



12



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Prior to January 31, 2003, all trading decisions were made by Bridgewater Associates, Inc. and Gamma Capital
Management, LLC (Gamma). Gamma was terminated as a trading advisor to the Trust on January 31, 2003 and replaced with Graham Capital Management, L.P. on February 11, 2003. Management fees are calculated on the net asset value
allocated to each trading manager at the end of each month and, therefore, are affected by trading performance and redemptions. Management fees increased by $1,000 for the six months ended June 30, 2004 as compared to the corresponding period in
2003. This increase was primarily due to the change in trading advisors as discussed further in Note A, offset in part by the decline in average net asset levels as discussed above. Management fees decreased by $4,000 for the three months ended June
30, 2004 as compared to the corresponding period in 2003 due to the decline in average net assets as discussed above.



Incentive fees are based on the New High Net Trading Profits generated by each trading manager, as defined in the advisory agreements among the Trust,
the Managing Owner and each trading manager. An incentive fee of $88,000 was incurred for the six months ended June 30, 2004. No incentive fee was incurred for the three months ended June 30, 2004. An incentive fee of $2,000 was incurred for the six
and three months ended June 30, 2003.



ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK



Information regarding quantitative
and qualitative disclosures about market risk is not required pursuant to Item 305(e) of Regulation S-K.



ITEM 4. CONTROLS AND PROCEDURES



As of the
end of the period covered by this report, the Managing Owner carried out an evaluation, under the supervision and with the participation of the officers of the Managing Owner, including the Managing Owners chief executive officer and chief
financial officer, of the effectiveness of the design and operation of the Trusts disclosure controls and procedures. Based upon that evaluation, the Managing Owners chief executive officer and chief financial officer concluded that the
Trusts disclosure controls and procedures are effective.



There
have not been any changes in our internal controls over financial reporting (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have
materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.



13



---

PART II. OTHER INFORMATION



|        |  |                                                                                                                 |  |                          |  |                                                                                                                                                                                                                                       
|------- |  | --------------------------------------------------------------------------------------------------------------- |  | ------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        | 
|Item 1. |  | Legal ProceedingsThere are no material legal proceedings pending by or against the Trust or the Managing Owner
|        | 
|Item 2. |  | Changes in SecuritiesNone                                                                                     
|        | 
|Item 3. |  | Defaults Upon Senior SecuritiesNone                                                                           
|        | 
|Item 4. |  | Submission of Matters to a Vote of Security HoldersNone                                                       
|        | 
|Item 5. |  | Other InformationNone                                                                                         
|        | 
|Item 6. |  | Exhibits and Reports on Form 8-K:                                                                              
|        |  |                                                                                                                
|        |  | (a)                                                                                                             |  | Exhibits                
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 3.1 and 4.1             |  | Second Amended and Restated Declaration of Trust and Trust Agreement of the Trust dated as of December 14, 1995 (incorporated by reference to Exhibit 3.1 to
4.1 to the Trusts Registration Statement on Form S-1, File No. 33-80443)
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 4.2                     |  | Subscription Agreement (incorporated by reference to Exhibit 4.2 to the Trusts Registration Statement on Form S-1, File No. 33-80443)                                                                                                
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 4.3                     |  | Request for Redemption (incorporated by reference to Exhibit 4.3 to the Trusts Registration Statement on Form S-1, File No. 33-80443)                                                                                                
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 31.1                    |  | Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)                                                                                                                                                       
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 31.2                    |  | Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)                                                                                                                                                       
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 32.1                    |  | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the SARBANES-OXLEY Act of 2002 (furnished herewith)                                                                                            
|        |  |                                                                                                                 | 
|        |  |                                                                                                                 |  | 32.2                    |  | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the SARBANES-OXLEY Act of 2002 (furnished herewith)                                                                                            
|        |  |                                                                                                                
|        |  | (b)                                                                                                             |  | Reports on Form 8-KNone



14



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SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Trust has duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.



|                                      |  |                                                                                      |  |                      
|------------------------------------- |  | ------------------------------------------------------------------------------------ |  | ---------------------
|PRUDENTIAL SECURITIES STRATEGIC TRUST |  |                                                                                     
|                                      |  |                                                                                     
|By:                                   |  | Prudential Securities Futures Management Inc. A Delaware corporation,
Managing Owner |  |                      
|                                      |  |                                                                                     
|                                      |  | By: /s/ Ronald J. Ivans                                                              |  | Date: August 13, 2004
|                                      |  | Ronald J. Ivans Chief Financial Officer                                              |  |                      



15