WITTER DEAN SPECTRUM BALANCED LP
10-Q, 1996-05-07
INVESTORS, NEC
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                            UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549

                              Form 10-Q

[X]      Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended March 31, 1996 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 33-80146          


                   DEAN WITTER SPECTRUM BALANCED L.P.

     (Exact name of registrant as specified in its charter)


        Delaware                                         13-3782232
(State or other jurisdiction of                     (I.R.S. Employer
Incorporation or organization)                     Identification No.)


c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl.               10048
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (212) 392-5454 




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


Indicate by check mark 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     X                         No          

<PAGE>
<TABLE> 
                    DEAN WITTER SPECTRUM BALANCED L.P.
 
                 INDEX TO QUARTERLY REPORT ON FORM 10-Q

                          March 31, 1996

<CAPTION>

PART I. FINANCIAL INFORMATION

<S>                                                               <C>
Item 1. Financial Statements

         Statements of Financial Condition
         March 31, 1996 (Unaudited) and December 31, 1995...........2

         Statements of Operations for the Quarters Ended
         March 31, 1996 and 1995 (Unaudited).........................3

         Statements of Changes in Partners' Capital for
         the Quarters Ended March 31, 1996 and 1995 
         (Unaudited).................................................4

         Statements of Cash Flows for the Quarters Ended
         March 31, 1996 and 1995 (Unaudited).........................5

         Notes to Financial Statements (Unaudited)................6-10

Item 2.       Management's Discussion and Analysis
              of Financial Condition and Results of 
              Operations.........................................11-14


PART II. OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K......................         15
</TABLE>
<PAGE>
<TABLE>
                    DEAN WITTER SPECTRUM BALANCED L.P.
                    STATEMENTS OF FINANCIAL CONDITION


<CAPTION>
                                                                   March 31,              December 31,
                                                                     1996                     1995     
                                                                       $                        $
                                                                  (Unaudited)
ASSETS
<S>                                                                <C>                       <C>    
Equity in Commodity futures trading accounts:
   Cash                                                            15,517,446                13,409,068
   Net unrealized gain on open contracts                              115,204                   392,428

   Total Trading Equity                                            15,632,650                13,801,496 


   Subscriptions receivable                                         1,150,736                 1,061,057
   Interest receivable (DWR)                                           62,821                    61,129      
   
   Total Assets                                                    16,846,207                14,923,682


LIABILITIES AND PARTNERS' CAPITAL

Liabilities

   Accrued brokerage commissions (DWR)                                 78,838                    66,673
   Redemptions payable                                                 25,158                    38,746
   Accrued management fees                                             16,425                    13,890
   Incentive fees payable                                                   -                    49,873

   Total Liabilities                                                  120,421                   169,182


Partners' Capital

   Limited Partners (1,499,324.517 and
    1,209,758.681 Units, respectively)                             16,549,867                14,604,689 
   General Partner (15,937.234 and 
    12,409.369 Units, respectively)                                   175,919                   149,811

   Total Partners' Capital                                         16,725,786                14,754,500

   Total Liabilities and Partners' Capital                         16,846,207                14,923,682


NET ASSET VALUE PER UNIT                                                11.04                     12.07



<FN>

                         The accompanying footnotes are an integral part
                                 of these financial statements.
</TABLE>
<PAGE>
<TABLE> 
                        DEAN WITTER SPECTRUM BALANCED L.P.
                             STATEMENTS OF OPERATIONS
                                  (Unaudited)


<CAPTION>



                                                                           For the Quarters Ended March 31, 
                                                                         1996                     1995
                                                                          $                         $
<S>                                                                     <C>                      <C>   
REVENUES
   Trading profit (loss):                                                        
        Realized                                                        (972,104)                 281,978
        Net change in unrealized                                        (277,224)                 173,151

          Total Trading Results                                       (1,249,328)                 455,129

        Interest Income (DWR)                                            184,650                   60,141

          Total Revenues                                              (1,064,678)                 515,270


EXPENSES

        Brokerage commissions (DWR)                                      230,158                   65,657
        Management fees                                                   47,950                   13,679
        Incentive fees                                                         -                   40,129
                                                                                 
          Total Expenses                                                 278,108                  119,465

NET INCOME (LOSS)                                                     (1,342,786)                 395,805


NET INCOME (LOSS) ALLOCATION

        Limited Partners                                              (1,328,894)                 387,042
        General Partner                                                  (13,892)                   8,763


NET INCOME (LOSS) PER UNIT

        Limited Partners                                                   (1.03)                     .89
        General Partners                                                   (1.03)                     .89

<FN>

                    The accompanying footnotes are an integral part
                           of these financial statements.
</TABLE>

<PAGE>
<TABLE> 
                            DEAN WITTER SPECTRUM BALANCED L.P.
                        STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                     For the Quarters Ended March 31, 1996 and 1995
                                      (Unaudited)

<CAPTION>



                                              Units of
                                             Partnership        Limited          General
                                              Interest         Partners          Partner          Total
<S>                                          <C>              <C>                <C>             <C>   

Partners' Capital
  December 31, 1994                          386,338.297      $3,701,277         $96,568         $3,797,845 

Continuous Offering                          169,502.727       1,766,348               -          1,766,348 

Net Income                                             -         387,042           8,763            395,805 

Partners' Capital
  March 31, 1995                             555,841.024      $5,854,667        $105,331         $5,959,998 




Partners' Capital
  December 31, 1995                        1,222,168.050     $14,604,689        $149,811        $14,754,500 

Continuous Offering                          300,493.984       3,358,649          40,000          3,398,649 

Net Loss                                               -      (1,328,894)        (13,892)        (1,342,786)

Redemptions                                  (7,400.283)         (84,577)               -           (84,577)

Partners' Capital
  March 31, 1996                          1,515,261.751      $16,549,867        $175,919        $16,725,786 




<FN>



             The accompanying footnotes are an integral part
                       of these financial statements.

</TABLE>
<PAGE>
<TABLE>

                        DEAN WITTER SPECTRUM BALANCED L.P.
                            STATEMENTS OF CASH FLOWS
                                (Unaudited)



<CAPTION>


                                                                             For the Quarters Ended March 31,
                                                                               1996               1995 
                                                                                 $                  $
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                        <C>                 <C>       
   Net income (loss)                                                        (1,342,786)         395,805  
   Noncash item included in net income (loss):
        Net change in unrealized                                               277,224         (173,151)

   Increase in operating assets:
        Interest receivable (DWR)                                               (1,692)          (7,230)
        Net option premiums                                                          -           (7,000)

   Increase (decrease) in operating liabilities:
        Accrued brokerage commissions (DWR)                                     12,165            8,360 
        Accrued management fees                                                  2,535            1,742 
        Incentive fees payable                                                 (49,873)          21,634 
 

   Net cash provided by (used for) operating activities                     (1,102,427)         240,160 


CASH FLOWS FROM FINANCING ACTIVITIES

   Continuous offering                                                       3,398,649         1,766,348
   Increase in subscriptions receivable                                        (89,679)        (304,605)
   Decrease in redemptions payable                                             (13,588)              -  
   Redemptions of units                                                        (84,577)               - 
 
   Net cash provided by financing activities                                 3,210,805        1,461,743  


   Net increase in cash                                                      2,108,378        1,701,903 

   Balance at beginning of period                                           13,409,068        3,260,143 

   Balance at end of period                                                 15,517,446        4,962,046 



<FN>

                  The accompanying footnotes are an integral part
                          of these financial statements.

</TABLE>
<PAGE>
 

 
                     DEAN WITTER SPECTRUM BALANCED L.P.
                      NOTES TO FINANCIAL STATEMENTS
                             (UNAUDITED)
The financial statements include, in the opinion of management, all
adjustments necessary for a fair presentation of the results of
operations and financial condition.  The financial statements and
condensed notes herein should be read in conjunction with the
Partnership's December 31, 1995 Annual Report on Form 10-K.

1. Organization
Dean Witter Spectrum Balanced L.P. (the "Partnership") is a limited
partnership organized to engage in the speculative trading of
futures and forward contracts, options on future contracts and on
physical commodities, and other commodity interests, including
foreign currencies, financial instruments, precious and industrial
metals, energy products and agriculturals.  Demeter Management
Corporation ("the General Partner") has retained RXR, Inc. as the
trading advisor of the Partnership.  Both the General Partner and
the commodity broker Dean Witter Reynolds Inc. ("DWR") are wholly
owned subsidiaries of Dean Witter, Discover & Co.


2. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity trading
accounts to meet margin requirements as needed.  DWR pays interest
on these funds based on prevailing U.S. Treasury Bill rates. 
Brokerage expenses incurred by the Partnership are paid to DWR.
<PAGE>
                     DEAN WITTER SPECTRUM BALANCED L.P.
                 NOTES TO FINANCIAL STATEMENTS (CONTINUED)



3.  Financial Instruments
The Partnership trades futures, forward contracts on futures and
related instruments in interest rates, stock indices, commodities,
currencies, petroleum and precious metals.  Futures and forwards
represents contracts for delayed delivery of an instrument at a
specified date and price.  Risk arises from changes in the value of
these contracts and the potential inability of counterparties to
perform under the terms of the contracts.  There are numerous
factors which may significantly influence the market value of these
contracts, including interest rate volatility.  At March 31, 1996
open contracts were:


                                                       Contract or
                                                     Notional Amount
                                                            $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase                               10,559,000
  Commitments to Sell                                 23,879,000
Commodity Futures:
  Commitments to Purchase                              7,596,000
  Commitments to Sell                                    167,000
Foreign Futures:
  Commitments to Purchase                              9,446,000
  Commitments to Sell                                  7,771,000
Off-Exchange-Traded Forward
 Currency Contracts
  Commitments to Purchase                             11,009,000
  Commitments to Sell                                  9,071,000


<PAGE>
             DEAN WITTER SPECTRUM BALANCED L.P.
            NOTES TO FINANCIAL STATEMENTS (CONTINUED)


A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward commitments
to purchase and to sell the same currency on the same date in the
future.  These commitments are economically offsetting, but are not
offset in the forward market until the settlement date.

The unrealized gain on open contracts is reported as a component of
"Equity in Commodity futures trading accounts" on the Statement of
Financial Condition and totaled $115,204 at March 31, 1996.  Of
this amount, $106,082 was related to exchange-traded futures
contracts and $9,122 related to off-exchange-traded forward
currency contracts.

Exchange-traded futures contracts held by the Partnership at March
31, 1996 mature through September 1996.  Off-exchange-traded
forward currency contracts held at March 31, 1996 mature through
April 1996.  The contract amounts in the above table represent the
Partnership's extent of involvement in the particular class of
financial instrument, but not the credit risk associated with
counterparty non-performance.  The credit risk associated with
these instruments is limited to the amounts reflected in the
partnership's Statements of Financial Condition.

<PAGE>
                      NOTES TO SPECTRUM BALANCED L.P.
                 NOTES TO FINANCIAL STATEMENT (CONTINUED)




The Partnership also has credit risk because the sole counterparty,
with respect to most of the Partnership's assets, is DWR. 
Exchange-traded futures contracts are marked to market on a daily
basis, with variations in value settled on a daily basis.  DWR, as
the futures commission merchant for all of the Partnership's
exchange-traded futures contracts, is required pursuant to
regulations of the Commodity Futures Trading Commission to 
segregate from its own assets and for the sole benefit of its
commodity customers, all funds held by DWR with respect to
exchange-traded futures contracts including an amount equal to the
net unrealized gains on all open futures contracts which funds
totaled $15,623,528 at March 31, 1996.  With respect to the
Partnership's off-exchange-traded forward currency contracts, there
are no daily settlements of variations in value nor is there any
requirement that an amount equal to the net unrealized gain on open
forward contracts be segregated.  With respect to those off-
exchange-traded forward currency contracts, the Partnership is at
risk to the ability of DWR, the counterparty on all of such
contracts, to perform.
<PAGE>
                     DEAN WITTER SPECTRUM BALANCED L.P.
                NOTES TO FINANCIAL STATEMENTS (CONCLUDED)




For the quarter ended March 31, 1996, the average fair value of
financial instruments held for trading purposes was as follows:

                                            Assets        Liabilities
                                              $                $

Exchange-Traded Contracts:
Financial Futures                         18,313,000       9,585,000
Commodity Futures                          5,036,000         992,000
Foreign Futures                           18,632,000       4,045,000
Off-Exchange-Traded Forward
 Currency Contracts                       12,151,000      12,720,000


<PAGE>
Item 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
              CONDITION AND RESULTS OF OPERATIONS

Liquidity - The Partnership's assets are on deposit in separate
commodity interest trading accounts with DWR and are used by the
Partnership as margin to engage in commodity futures, forward
contracts on foreign currencies and other commodity interest
trading.  DWR holds such assets in either designated depositories
or in securities approved by the Commodity Futures Trading
Commission for investment of customer funds.  The Partnership's
assets held by DWR may be used as margin solely for the
Partnership's trading.  Since the Partnership's sole purpose is to
trade in commodity futures contracts, forward contracts on foreign
currencies and other commodity interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.

The Partnership's investment in commodity futures and forward
contracts and other commodity interests may be illiquid.  If the
price of the 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 Partnership from promptly 
liquidating its commodity futures positions.
<PAGE>
There is no limitation on daily price moves in trading forward
contracts on foreign currency.  The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and subjecting it to
substantial losses.  Either of these market conditions could result
in restrictions on redemptions.

Capital Resources - The Partnership does not have, nor does it
expect to have, any capital assets.  Redemptions of additional
Units in the future will impact the amount of funds available for
investments in commodity futures and forward contracts and other 
commodity interests.  As redemptions are at the discretion of
Limited Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions.

Results of Operations 
For the Quarter Ended March 31, 1996
For the quarter ended March 31, 1996, the Partnership's total
trading losses net of interest income were $1,064,678.  During the
first quarter, the Partnership posted a loss in Net Asset Value per
Unit.  The most significant losses were recorded in the bond
portion of the balanced portfolio from long positions in U.S.
Treasury bond futures as prices moved dramatically lower during
February and into March.  Additional losses were recorded in the
managed futures portion of the balanced portfolio in February as
global interest rate futures also reversed their upward trend.  
<PAGE>
Trading losses were also experienced in the managed futures portion
of the portfolio in the currency markets during February as a
sudden upward move occurred in the value of most European
currencies relative to the U.S. dollar.  A portion of these losses
was offset by gains from short positions in the Japanese yen during
January and March.  Smaller losses were recorded in the managed
futures portion of the portfolio from trading soft commodities,
base metals and energy futures during the first quarter.  A small
portion of the overall losses for the quarter was offset by gains
in the stock portion of the balanced portfolio as S&P 500 index
futures prices moved higher during the quarter.  Total expenses for
the period were $278,108, resulting in a net loss of $1,342,786. 
The value of an individual Unit in the Partnership decreased from
$12.07 at December 31, 1995 to $11.04 at March 31, 1996.

For the Quarter Ended March 31, 1995
For the quarter ended March 31, 1995, the Partnership's total
trading revenues including interest income were $515,270.   During
the first quarter, the Partnership posted a gain in Net Asset Value
per Unit.  The most significant gains were recorded in the managed
futures portion of the balanced portfolio from trading in the
financial futures and currency markets.  Smaller gains were
recorded in the managed futures portion of the balanced portfolio
from trading natural gas, cotton and aluminum.  Additional trading
gains were recorded from long positions in the S&P 500 Index in the
stock portion of the balanced portfolio and from long U.S. Treasury
bond positions in the bond portion of the balanced portfolio.  In 
<PAGE>
the managed futures portion of the portfolio, smaller losses
recorded in European bond, British pound, coffee and soybean
products offset a portion of overall Partnership gains for the
quarter.  Total expenses for the period were $119,465, generating
net income of $395,805.  The value of an individual Unit in the
Partnership increased from $9.83 at December 31, 1994 to $10.72 at
March 31, 1995.

<PAGE>
                PART II. OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

              A)    Exhibits.

                    None.

              B)    Reports on Form 8-K. - None.


<PAGE>
                                                  SIGNATURE



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




                                Dean Witter Spectrum Balanced L.P.
                                     (Registrant)

                                By: Demeter Management Corporation
                                     (General Partner)

May 7, 1996                    By: /s/ Patti L. Behnke
                                       Patti L. Behnke
                                        Chief Financial Officer




The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.

<PAGE>


                              
                              


<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Spectrum Balanced L.P. and is qualified in its entirety by
references to such financial instruments.
</LEGEND>
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          MAR-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                      15,517,446
<SECURITIES>                                         0
<RECEIVABLES>                                1,213,557<F1>
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0
<PP&E>                                               0
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                              16,846,207<F2>
<CURRENT-LIABILITIES>                                0
<BONDS>                                              0
<COMMON>                                             0
                                0
                                          0
<OTHER-SE>                                           0
<TOTAL-LIABILITY-AND-EQUITY>                16,846,207<F3>
<SALES>                                              0
<TOTAL-REVENUES>                           (1,064,678)<F4>
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                               278,108
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                            (1,342,786)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (1,342,786)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (1,342,786)
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0
<FN>
<F1>Receivables include subscriptions receivable of $1,150,736 and interest
receivable of $62,821.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $115,204.
<F3>Liabilities include redemptions payable of $25,158, accrued brokerage
commissions of $78,838 and accrued management fees of $16,425.
<F4>Total revenues includes realized trading revenue of $(972,104), net
change in unrealized of $(277,224) and interest income of $184,650.
</FN>
        

</TABLE>


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