M O N 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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Monday: The CRB Index is declining 1.30 points to 190.61. The 
US Dollar Index slipped 0.43 points to 116.83.

The Dow Industrials fell 115.49 points, at 10021.50, while 
the S&P 500 softened 12.94 points, last seen at 1148.08. The 
Nasdaq Composite declined 36.86 points to 1950.40.
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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 were mixed on Friday following today's bullish economic
data. Tech stocks remain strong lead by gains in Yahoo, which rose
75-cents to $18.52 on a fourth-quarter revenue update by Merrill
Lynch analyst Henry Blodget. Today's rise on the consumer confidence
index also supported today's rallies in the stock indexes. The NASDAQ
closed higher on Friday but near session lows due to a sell off ahead
of the close. Closes above the reaction high crossing at 2010.91
would open the door for a possible test of December's high early next
year. The March S&P 500 index closed slightly lower on Friday due to
a late-session sell off triggered by year-end tax selling. 

The Dow closed slightly higher on Friday as today's positive economic
news was off set by year-end selling by investors for tax purposes.
The marked jump in the consumer confidence index, which came in at
93.7 versus expectations of 83 and above November's 84.9 raised hopes
that a recovery in business may be possible beginning in the first
quarter of 2002. The Dow continues to consolidate above the 62%
retracement level of the May/September decline crossing at 10,094.10.
At the same time, a number of short-term momentum indicators are
becoming overbought hinting that we could see a brief setback to
start the new year. 

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

March T-bonds closed lower on Friday as the latest economic data
shows a rise in home sales along with increased orders for many
big-ticket items. Additional support came from a rebound in consumer
confidence raising hopes that better days may be ahead for the ailing
economy as we move into 2002. The latest consumer confidence index
rose to 93.7 up from a revised 84.9 in November. Analysts were
expecting a figure close to 83. Technically, March bonds appear to be
forming an inverted head and shoulder's bottom. Closes above 102-05
are needed before this bottom formation can be confirmed. Stochastics
and the RSI are bullish signaling that sideways to higher prices are
possible into early- January. 

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

The CRB index posted an inside day with a lower close on Friday.
Thursday's key reversal down remains unconfirmed, as the CRB did not
take out yesterday's low. However, momentum indicators are diverging
warning that a double top might have been posted with yesterday's
high. The CRB index will need to close above this year's downtrend
line crossing near 195.35 to confirm a major trend change is taking
place. 

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

The energy markets closed lower on Friday with the exception of
natural gas. Early strength was due to OPEC's announced product cuts
for January 1, 2002. However, profit taking by mid-session in a
"buy-the-rumor-sell-the-fact" move on the part of traders led to a
sell off into the close. OPEC confirmed that it will cut production
by 1.5 million barrels per day beginning January 1 and those cuts
will remain in place for 6-months. Crude oil prices have already
risen $3.11 from their November lows as the markets have already
priced in some of today's bullish news. 

February crude oil closed lower on Friday due to light profit taking
before the end of the year. Today's low-range close leaves the door
open for follow-through selling when trading resumes next week. If
traders return from the holidays in a buying mood, February crude oil
may try and test November's high at 22.83 in early-January.
Stochastics and the RSI are bullish signaling that sideways to higher
prices are possible near-term. 

February heating oil closed lower on Friday and below broken
resistance crossing at 57.80. February's inability to rally on
confirmation of bullish news strongly suggests that most of if not
all of today's bullish news has already been factored into prices. If
February extends this month's rally next week, November's reaction
high crossing at 64.35 is a possible target later this winter. 

February unleaded gas posted key reversal down on Friday as early
strength fell short of testing November's high at 62.31. Year-end
profit taking ahead of the close pulled February into negative
territory. Additional weakness next week is needed to confirm today's
bearish reversal pattern thereby increasing the odds that a
short-term top might have been posted.

February Henry Hub natural gas posted an inside day with a higher
close due to light short covering as it consolidated some of
Thursday's losses. Today's rebound was triggered by extended
forecast, which are calling for below-normal temps to spread across
the upper part of the U.S. during the first week of January. Closes
above 3.034 or below 2.555 are needed to confirm a breakout of
December's trading range.

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

The March Dollar posted an inside day with a lower close on Friday as
it continues to consolidate some of Monday's gains. Today's close
below November's high at 118.27 and the 62% retracement level of this
summer's decline crossing at 118.23 should be noted by bullish
traders. Multiple closes below these broken resistance levels would
temper the near- term bullish outlook in the Dollar. If the rally
resumes, the 75% retracement level of this summer's decline crossing
at 119.57 is March's next upside target. 

The March Swiss Franc closed slightly higher on Friday as it
consolidates below broken support crossing at .5973. Closes above
this broken support level would temper the near-term bearish outlook
in the Franc. Closes below this week's low at .5797 would renew
December's decline and could lead to a test of fib support crossing
at .5722 later this winter. 

The March Canadian Dollar closed higher on Friday due to year-end
short covering following this week's test of November's low at .6230.
Today's rally also confirmed Thursday's key reversal up thereby
increasing the odds that additional short covering is possible into
early-January. Additional strength will be needed before momentum
indicators turn bullish. 

The March Japanese Yen closed higher on Friday due to year- end short
covering. However, the mid-range close leaves the door open for
sideways to lower trading when the yen reopens next week. I am still
looking for March to test monthly fib support crossing at .7568 in
the near future. The daily ADX is bearish signaling that additional
weakness is possible into early-January.

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

February gold closed lower on Friday confirming Thursday's breakout
out below December's uptrend line. Today's close below December's
uptrend line opens the door for sideways to lower prices into
early-January. Stochastics and the RSI are turning bearish signaling
that additional weakness into the first half of January is possible.
I would not be surprised to see a trading range develop after the
first of the year, which could last well into February. 

March silver posted an upside reversal on Friday but remained below
the 62% retracement level of this fall's decline crossing at 4.51.
Stochastics and the RSI are very overbought and turning bearish
warning traders to use caution as a top might be in or near. Closes
below December's uptrend line crossing near 4.39 are needed before
this is confirmed. The daily ADX turned down with Thursday's decline
hinting that the rally off November's low is in trouble. 

March copper closed lower on Friday and is poised to test the 50%
retracement level of November's rally crossing at 67.50. Closes below
this support level or above the reaction high crossing at 69.45 are
needed to confirm a breakout of December's trading range and clear up
near-term direction in the market. 

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

March corn closed fractionally higher on Friday following this
morning's weekly export sales report, which came in better than
expected at 35.82 million bushels. However, weakness in the soybean
complex and wheat tempered today's gains in March corn. This week's
breakout below key support crossing at 2.10 1/4 has set the stage for
a test of weekly support crossing at 2.04 1/4 later this winter.
Stochastics and the RSI are oversold but bearish signaling that
sideways to lower prices are possible into early-January. The grain
markets will be closed on Monday, the last day of this year. 

March wheat closed fractionally lower on Friday despite today's
announcement that Spain purchased 100,000 metric tonnes of U.S. soft
red winter wheat for delivery in the 2001/02 marketing year. Profit
taking ahead of the close along with spillover weakness from soybeans
pulled March wheat lower on the day. Closes above trendline
resistance crossing near 2.94 or below trendline support crossing
near 2.83 are needed to clear up near-term direction in the market.
Stochastics and the RSI are bullish signaling that sideways to higher
prices are possible into early-January. 

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

March soybeans closed lower on Friday following today's disappointing
export sales report, which showed net sales of 21.27 million bushels.
The market ignored the monthly crush report for November, which came
in at 149.1 million bushels as traders chose to focus on South
American's growing crop potential. March beans closed out the week
near session lows as it is poised to test weekly support crossing at
4.23 1/2 in the near future. 

March soybean meal posted a key reversal down on Friday and closed
below minor support crossing at 144.90 despite today's bullish crush
report. Multiple closes below this support level would open the door
for a test of April's low crossing at 142 later this winter. This
week's export sales report was very impressive with net sales of
238,600 metric tonnes. However, thin holiday trading along with a
lack of willing buyers allowed locals to push prices lower into the
close. Closes above this summer's downtrend line crossing near 151.90
are needed to confirm a bottom and trend change. 

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

February hogs closed higher on Friday due to higher cash bids.
However, today's rally was capped by this summer's downtrend line
crossing near 56.40. Closes above this resistance level would open
the door for a larger-degree rebound into January. Traders went into
this afternoon's report looking for a bullish number. Early calls by
traders indicated that the report was bullish for the nearby futures
but bearish for the deferred contracts. 

Hog inventory as of Dec. 1 was 99%, average estimates came in at
99.9%.

Hogs kept for breeding came in at 99%, average estimates came in at
99.3%.

Hogs kept for marketing came in at 99%, average estimates came in at
100.1%.

The marketing and breeding numbers are bullish as the report showed
that there has been no expansion despite low feed cost, low interest
rates and profits throughout the year. I am looking for higher prices
on Monday and possible into next Wednesday now that the report is out
of the way. However, this month's rally has already factored in a
sizeable portion of today's bullish report into prices already. 

February cattle posted an inside day with a higher close on Friday as
stronger cash bids underpinned today's rally. Feedlots and packers
battled all week before they finally agreed at a $64 minimum bid.
Cash sources indicated that there were a few bids at $65 in some
areas. Today's higher cash bid came on the heels of lower boxed beef
prices this afternoon. Today's high-range close leaves the door open
for a possible test of November's high crossing at 71.35 on Monday.
Momentum indicators are bullish signaling that this target is within
reach of the market. 

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

March coffee posted another key reversal down on Friday as the
outlook for a bumper Brazilian coffee crop this spring continues to
weigh on prices. Trading was light ahead of the upcoming 4-day
holiday weekend as traders completed end of the year position
squaring. Closes below 44.75 would confirm a breakout into new
contract lows thereby opening the door for a possible test of
psychological support crossing at 40- cents later this winter. 

March cocoa closed slightly higher on Friday thereby confirming
yesterday's key reversal up. Early strength tied to spillover short
covering from Thursday's rally ran out of gas by mid-session. March
will need to close above 1365 or below 1212 to clear up near-term
direction in the market. Stochastics and the RSI are bullish
signaling that sideways to higher prices are possible into
early-January. 

March sugar extended Thursday's short covering rebound on Friday due
to light fund buying triggered by Syria's tender for 13,000 tonnes of
raws and news that Egypt is shopping for 26,000 tonnes of raws and
whites for Jan./Feb. shipment. Stochastics and the RSI have turned
bullish signaling that sideways to higher prices are possible into
early-January. 

March cotton closed lower on Friday as the market ignored today's
strong export sales report, which showed net sales of 228,800 bales
and focused on the weak U.S. consumption data. The consumption report
showed that the annualized adjusted rate for U.S. consumption came in
at 7.32 million bales, which was some 100,000 bales below pre-report
estimates and is down 19% from year ago levels. Today's close below
broken trendline resistance opens the door for a possible test of
this month's low crossing at 34.91 in early January. 

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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

XOH2   Oats Mar 2002                             195 3/4     7 3/4  +4.03
LBX2   Random Length Lumber Nov 2002              270.00     10.00  +3.85
OZ2    Oats Dec 2002                             144 3/4     4 3/4  +3.39
AGM2   Silver 1,000 oz. Jun 2002                   4.450     0.140  +3.33
SIN2   Silver Jul 2002                             4.588     0.146  +3.24
CLU2   Light Sweet Crude Oil Sep 2002              20.61      0.48  +2.28
KIJ2   Kilo Gold Apr 2002                            283       5.6  +2.02
LCZ1   Live Cattle Dec 2001                       68.175     1.000  +1.49
LHJ2   Lean Hogs Apr 2002                         60.050     0.875  +1.48
XHG2   Lean Hogs Feb 2002                          57.05      0.60  +1.07

LOSERS

NGG2   Henry Hub Natural Gas Feb 2002              2.570    -0.229  -8.26
PNG2   Propane Feb 2002                           0.3225   -0.0245  -7.16
SN3    Soybeans Jul 2003                             454       -20  -4.22
LBF2   Random Length Lumber Jan 2002              245.10     -9.30  -3.66
HUF2   New York Harbor Unleaded Gasoline Jan 20    0.5725   -0.0206  -3.52
HON2   Heating Oil Jul 2002                       0.5473   -0.0190  -3.37
NDH2   NASDAQ 100 Index Mar 2002                 1571.00    -53.00  -3.26
HGH2   Copper Mar 2002                            0.6590   -0.0180  -2.66
GIG2   Goldman Sachs Commodity Index Feb 2002     169.95     -4.45  -2.55
CLG2   Light Sweet Crude Oil Feb 2002              19.84     -0.47  -2.30

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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

MGS    METROGAS S.A. CL'B'ADS                       6.50      1.35  +26.21
CHDX   U.S.-CHINA INDL EXCHANGE                  14.0000    2.5800  +21.04
XNVA   XENOVA GROUP PLC ADS                      11.7700    2.1300  +20.82
CSPLF  CANADA SOUTH'N PETROL                      5.2600    0.8500  +19.77
GILTF  GILAT SATELLITE NETWORKS                   5.4800    0.8899  +19.18
CIZ    CITIZENS HOLDING COMPANY                    24.90      3.90  +18.57
ARDI   AT ROAD INC                                5.8800    0.8200  +16.60
SDIX   STRATEGIC DIAGNOSTICS                      7.1000    1.0000  +15.87
PSIT   PSI TECH HLDGS INC ADS                     9.1500    1.1500  +14.74
SGMO   SANGAMO BIOSCIENCES                        9.3400    1.1800  +14.57

LOSERS

CAS    A.M. CASTLE & CO                             8.20     -1.85  -18.41
IMCL   IMCLONE SYSTEMS                           46.4600   -8.7290  -15.80
SSSW   SILVERSTREAM SOFTWARE INC                  6.8100   -0.9600  -13.52
XRIT   X-RITE INC                                 8.5100   -1.2500  -13.16
STRD   STRATEGIC DISTRIBUTION INC NEW             6.1000   -0.7000  -11.11
TFCO   TUFCO TECHNOLOGIES                         6.8900   -0.7500  -11.03
WMUX   WESTERN MULTIPLEX'A'                       5.4000   -0.6300  -10.77
TESTB  TEST SECURITY                            276.5700  -31.1200  -10.14
FOB    BOYDS COLLECTION                             6.77     -0.78  -10.13
MAPS   MAPINFO CORP                              15.6900   -1.6600  -9.94
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