F R I D A Y   E V E N I N G   E X T R E M E   M A R K E T S
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Friday: The CRB Index has advanced 2.02 points to 188.39. The 
US Dollar Index slipped 0.07 points to 116.44.

The Dow Industrials fell 5.40 points, at 9866.99, while 
the S&P 500 declined 3.59 points, last seen at 1138.65. The 
Nasdaq Composite fell 1.99 points to 1898.58.
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E X T R E M E   M A R K E T   C O M M E N T A R Y
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The STOCK INDEXES http://quotes.ino.com/exchanges/?c=indexes

Stock indexes closed lower on Friday due to light profit taking ahead
of the close. The NASDAQ posted another inside day with a slightly
lower close as it consolidates below minor resistance crossing at
1933.94. Weekly momentum indicators remain bullish signaling that
sideways to higher prices are possible during the last half of
November. If the aforementioned resistance level is cleared, the 25%
retracement level of the 2000/2001 decline crossing at 2071.93 is a
potential target later this year. The December S&P 500 index closed
lower on Friday but held above the 50% retracement level of the
May/September decline crossing at 1137.45. The door remains open for
a test of the reaction high crossing at 1163.90 later this month. 

The Dow closed slightly lower on Friday due to light profit taking
ahead of the weekend. Losses were limited following the release of
today?s economic reports and ideas that the conflict in Afghanistan
may come to an end by the end of the year. If this fall?s rebound
continues, the 62% retracement level of this year?s decline crossing
at 10094.10 is the Dow?s next target. 

INTEREST RATES http://quotes.ino.com/exchanges/?c=interest

December T-bonds extended this week?s sharp sell off on Friday and
tested the 75% retracement level of the Sept./Oct. rally crossing at
104-29. December bonds have decline over 5 points since Tuesday.
While momentum indicators are bearish signaling that additional
weakness is possible during the last half of November I would not be
surprised to see a modest short covering bounce early next week.
Longer-term the door is open for a possible test of September?s low
crossing at 102-17. 

The CRB INDEX http://quotes.ino.com/exchanges/?c=indexes

The CRB index closed higher on Friday due to a rebound in energies,
grains, fiber and foods. Session lows fell short of testing trendline
support drawn across this fall?s lows. Closes below this support
level crossing near 186 are needed to confirm that the shallow
rebound off October?s low has ended. At the same time closes above
this week?s high crossing at 190.46 are needed to renew this fall?s
rally. 

ENERGY MARKETS http://quotes.ino.com/exchanges/?c=energy

The energy markets closed higher on Friday due to short covering as
it consolidated some of this week?s sharp losses. However, upside
potential appears limited due to the possibility of a protracted
fight between Russia and OPEC that could last for some time. 

December crude oil posted an inside day with a modestly higher close
due to light short covering. However, December remains poised to test
of the 75% retracement level of the 1998/2000 rally crossing at 16.83
later this month. If this support level fails to halt this fall?s
decline the January 1999 reaction high crossing at 13.75 is a
possible target later this fall. Momentum indicators are bearish
signaling that additional weakness is possible during the last half
of November. 

December heating oil posted an inside day with a modestly higher
close on Thursday due to light short covering. However, a sell off
ahead of the close tempered some of today?s gains leaving the door
open for sideways trading on Monday. Session highs tested broken
support marked by the October 1999 low crossing at 53.40. If this
week?s decline continues, the 75% retracement level of the 1999/2000
rally crossing at 48.50 is December?s next likely target. Momentum
indicators are bearish signaling that sideways to lower prices are
likely into the last half of November. 

December unleaded gas ended higher on Friday due to light short
covering as it consolidated some of this week?s losses. However,
today?s short covering bounce fell short of testing broken support
crossing at 51.87. While another day or two of short covering is
possible, the door is open for additional weakness with the June 1999
low crossing at 47.00 being December?s next likely target. Momentum
indicators are bearish signaling that sideways to lower prices are
possible near-term. 

December Henry Hub natural posted an upside reversal on Friday after
spiked below October?s low crossing at 2.535. Additional strength on
Monday is needed to confirm today?s bullish reversal pattern thereby
increasing the odds that this week?s low marked a double bottom with
October?s low. If the decline off October?s high continues, weekly
fib support crossing at 2.402 is a potential target later this year.
Short-term momentum indicators are bearish but have entered their
respective oversold zones hinting that a double bottom might be
forming if October?s low can halt this month?s decline. 

CURRENCIES http://quotes.ino.com/exchanges/?c=currencies

The December Dollar posted another quiet inside day with a lower
close as it consolidates just below trading range resistance crossing
at 116.60. Closes above Wednesday?s high at 117.05 would confirm a
breakout above this falls trading range and could lead to a test of
August?s reaction high crossing at 117.49 later this month.
Stochastics remain bullish signaling that sideways to higher prices
are still possible. 

The December Swiss Franc closed higher on Friday as it extended its
short covering bounce off Wednesday?s low. Monday will be a key day
in near-term direction of the market. A higher opening followed by a
lower close on Monday would signal that this week?s short covering
bounce has likely come to an end. Closes below Wednesday?s low at
.5961 would renew December?s decline and set the stage for a likely
test of the 50% retracement level of the July/September rally
crossing at .5944. Momentum indicators are bearish signaling that
additional weakness is possible during the later part of November. 

The December Canadian Dollar closed modestly lower on Friday, as is
consolidated above October?s broken downtrend line. Today?s mid-range
close leaves the door open for sideways trading on Monday. If
December extends this week?s short covering rally the 25% retracement
level of the July/November decline crossing at .6322 is December?s
next upside target. Momentum indicators are bullish signaling that
sideways to higher prices are possible near-term. 

The December Japanese Yen closed out the week on a low note on
Friday. However, session lows fell short of testing October?s low
crossing at .8132. If this support level is broken thereby renewing
December?s decline off September?s high this summer?s low crossing at
.8060 is a potential target later this year. Stochastics and the RSI
are bearish signaling sideways to lower prices are possible into the
last half of November. 

PRECIOUS METALS http://quotes.ino.com/exchanges/?c=metals

December gold posted a second consecutive close below October?s low
on Friday thereby opening the door for a possible test of August?s
reaction low crossing at 272.60 later this month. However, today?s
mid-range close leaves the door open for a possible short covering
bounce on Monday. Stochastics and the RSI are bearish signaling that
additional weakness is possible during the last half of November. 

December silver posted an inside day with a lower close on Friday as
it consolidates below broken support crossing at 4.15. Close below
last Friday?s low crossing at 4.055 cents would renew December?s
decline off September?s high and could lead to a possible test of
weekly support crossing at 3.90 later this month. 

December copper posted a key reversal up on Friday ending Thursday?s
correction. At the same time December will need to close above
Thursday?s high crossing at 69.60 to renew its rebound off last
week?s low. If the rally resumes, August?s high crossing at 70.60 is
December?s next target. Short-term momentum indicators are bullish
but becoming overbought hinting that a test of August?s high early
next week could trigger a round of profit taking. 

GRAINS http://quotes.ino.com/exchanges/?c=grains

December corn closed higher on Friday due in large part to spillover
strength from soybeans and wheat. This morning?s export sales report
came in at 31.9 million bushels, which was near the upper end of
pre-report estimates but still below the pace needed to reach USDA
export projections. Today?s high-range close sets the stage for a
firmer opening on Monday but closes above initial gap resistance
crossing at 2.09 1/2 are needed to trigger new buying interest in the
market. Until then sideways trading will continue to dominate the
market near-term. 

December wheat closed sharply higher on Friday as short covering
gains were exaggerated as buy stops were hit above 2.86, which pushed
December above last week?s high of 2.88 1/2. While a setback is
possible on Monday due to ideas that today?s gains were overdone
today?s rally turned a number of momentum indicators neutral to
bullish signaling that the sell off from October?s high has come to
an end. Today?s rally found little support from this week?s export
sales report, which came in at 14 million bushels and well within
pre-report estimates. 

SOYBEAN COMPLEX http://quotes.ino.com/exchanges/?c=grains

January soybeans closed higher on Friday as bulls stepped up to the
plate and defended their positions following this week?s breakout
above initial gap resistance crossing at 4.44 1/. Today?s rally fell
just short of filling October?s gap crossing at 4.53 1/2, which
coincides with the 25% retracement level of the July/October decline
crossing at 4.54. Closes above these key resistance levels are needed
to open the door for a larger-degree post-harvest rebound that could
last into the end of the year. Today?s weekly export sales report
came in near the low end of pre-report estimates at 27.25 million
bushels. However, expectations for improving foreign and domestic
demand in the coming weeks along with a lack of sellers helps push
January to new highs for the week. 

December soybean meal closed steady on Friday after testing the upper
boundary of October?s trading range crossing at 167. A round of
profit taking ahead of the close erased early gains leaving the door
open for further consolidation on Monday. At the same time short-term
momentum indicators remain bullish signaling sideways to higher
prices are possible during the last half of November. Closes above
167 could lead to a test of September?s high crossing at 171 later
this month. 

LIVESTOCK http://quotes.ino.com/exchanges/?c=livestock

December hogs closed sharply lower on Friday erasing the gains of the
past three trading sessions. Much of today?s pressure in the December
contract was due to bull spreaders dumping their positions ahead of
the weekend. With packers covered on their needed into next
Wednesday, weaker cash bids are expected to start the new week on
Monday. Momentum indicators remain bearish hinting that December
could renew its decline off last week?s high and possibly test
October?s low at 46.70 later next week before a bottom is in place. 

December cattle closed higher on Friday due to short covering ahead
of this afternoon?s cattle-on-feed report. Momentum indicators have
turned bullish signaling that Monday?s low likely marked an important
bottom. The late- week rebound has V-bottom written all over the
market. This afternoon?s cattle-on-feed report was termed bearish.
The big question is whether or not the decline ahead of the report
factored in all of today?s bearish news. I am looking for a setback
on Monday as the market absorbs today?s negative report. Here are the
highlights of today?s report. 

USDA estimate Ave. guess Range of guesses

On Feed as of Nov. 1 ----- 100% 99.2% 98.0- 100.00%

Placed in October -------- 97% 91.5% 87.0- 97.5%

Marketed in October ------ 99% 99.1% 97.0- 100.00%

FOOD & FIBER http://quotes.ino.com/exchanges/?c=food

December coffee posted an inside day with a higher close on Friday
and remains poised to extend its short covering rebound off October?s
low. Closes above Wednesday?s high at 50.00 cents would renew this
week?s rally setting the stage for a test of August?s gap crossing at
54.00 later this year. Momentum indicators are turning bullish
signaling that additional gains are possible near-term. 

December cocoa gapped up and closed sharply higher on Friday as it
cleared both last February?s high at 1237 and weekly fib resistance
crossing at 1261. This week?s breakout above February?s high has
opened the door for a possible test of the 62% retracement level of
the 1997/2000 decline crossing at 1349 later this year. At the same
time, if today?s gap is filled next week it would signal that a top
has likely been posted as today?s gap was an exhaustion gap.

March sugar closed lower on Friday due to light profit taking ahead
of the weekend. If the rally continues, the 50% retracement level of
the June/October decline crossing at 755 is March?s next target.
Closes below this fall?s uptrend line crossing near 691 would confirm
that a short-term top has been posted. Weekly momentum indicators
remain bullish signaling that sideways to higher prices are possible
into late-November.

December cotton closed higher on Friday supported by this week?s
stellar export sales report that came in at 455,200 bales, the
strongest of the marketing year. Nevertheless, December failed to
exceed this week?s high at 35.60 and closed mid-range on the day.
This leaves the door open for sideways trading on Monday. Closes
below Thursday?s low at 33.40 could trigger new selling, which could
end the late fall rally. If the rally resumes, fib resistance
crossing at 37.25 is December?s next target. Momentum indicators are
bullish but nearing their respective overbought zones warning traders
to use caution as a short-term top might be near. 

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I N O   N E W S   
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Pacific Exchange Adds 90 Options To B-D Auto-Ex Program
   http://news.ino.com/press/?release=27523
WTC Gold Re-Located And Eligible For NYMEX Deliveries
   http://news.ino.com/press/?release=27522
Tel Aviv Stock Exchange To Launch Euro-Shekel Derivatives
   http://news.ino.com/press/?release=27521
CME Records Busiest Ever Day, Sets Open Interest Record
   http://news.ino.com/press/?release=27520
Hong Kong Reduces Levies On Stock Futures Contracts
   http://news.ino.com/press/?release=27519

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E X T R E M E   F U T U R E S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

PNM2   Propane Jun 2002                           0.3150    0.0200  +6.78
HOX2   Heating Oil Nov 2002                       0.5656    0.0298  +5.42
PAZ1   Palladium Dec 2001                         342.00     16.05  +4.92
CCZ1   Cocoa Dec 2001                               1285        54  +4.37
LBN2   Random Length Lumber Jul 2002              246.00     10.00  +4.15
DBZ1   Butter Dec 2001                           140.000     5.000  +3.70
NGZ1   Henry Hub Natural Gas Dec 2001              2.637     0.094  +3.68
SCF2   Brent Crude Oil Jan 2002                    17.76      0.63  +3.64
CLZ1   Light Sweet Crude Oil Dec 2001              18.03      0.62  +3.55
XWZ1   Wheat Dec 2001                            289 1/4     9 3/4  +3.48

LOSERS

QLN2   Central Appalachian Coal Jul 2002           30.50     -1.50  -4.69
LHZ1   Lean Hogs Dec 2001                         48.050    -1.375  -2.78
RRH2   Rough Rice Mar 2002                         4.160    -0.090  -2.12
XHZ1   Lean Hogs Dec 2001                          48.05     -1.02  -2.06
CLZ5   Light Sweet Crude Oil Dec 2005              20.89     -0.33  -1.62
PNZ1   Propane Dec 2001                           0.3100   -0.0050  -1.59
PBN2   Frozen Pork Bellies Jul 2002               74.500    -1.000  -1.32
TUH2   Treasury Notes 2yr Mar 2002             104 19/64    -87/64  -1.30
ZBH2   U.S. Treasury Bond Mar 2002             104 02/32  -1 06/32  -1.13
ZTZ1   Treasury Notes 2yr Dec 2001             104 56/64    -72/64  -1.07

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E X T R E M E   S T O C K S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/stocks/

WINNERS

TESTV  TEST SECURITY                             42.6300   11.0100  +34.82
TESTA  TEST SECURITY                            120.4100   30.2100  +33.49
ITXC   ITXC CORP                                  5.7200    1.4700  +33.18
AMIE   AMBASSADORS INTL                          19.4900    4.1500  +26.84
U      US AIRWAYS GROUP                             6.97      1.27  +22.28
MRVC   MRV COMMUNICATIONS                         5.2100    0.9300  +21.53
DNCR   DYNACARE INC                              13.1500    2.3200  +21.32
BRLI   BIO-REFERENCE LABS                         6.4000    1.0600  +19.67
DOC    MEDICAL ADVISORY SYSTEMS INC                 7.90      1.25  +18.80
RBAK   REDBACK NETWORKS INC                       5.3000    0.8000  +17.86

LOSERS

FLIR   FLIR SYS INC                              34.3400   -7.0400  -17.17
VINT   GOLDEN STATE VINTNERS'B'                   5.5000   -0.8200  -14.91
AEOS   AMER EAGLE OUTFITTERS INC                 26.2700   -4.2900  -14.07
FC     FRANKLIN COVEY                               6.06     -0.95  -13.57
ATPG   ATP OIL & GAS                              5.2900   -0.7100  -12.35
SSPX   SSP SOLUTIONS INC                          5.1800   -0.6700  -11.75
IMCO   IMPCO TECHNOLOGIES                        14.3000   -1.8500  -11.60
MAGS   MAGAL SECURITY SYSTEMS LTD                 7.1800   -0.8900  -11.37
RMCI   RIGHT MGMT CONSULTANTS                    21.9300   -2.8800  -11.28
CTRA   CENTRA SOFTWARE                            6.8000   -0.8400  -11.05
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