M O N D A Y   E X T R E M E   M A R K E T S
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December 11: The CRB Index has climbed 1.76 points to 232.36. The
US Dollar Index moved up 0.25 points to 114.42.

The Dow Industrials edged higher by 12.89 points, at 10725.80, while
the S&P 500 edged higher by 10.34 points, last seen at 1380.23. The
Nasdaq Composite trended higher 97.28 points to 3014.71.

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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 The Nasdaq and S&P's extended last week's short
covering rally on ideas that all of the bad news about earnings has
been discounted into the markets. Additional support came from ideas
that the Federal Reserve will cut interest rates in 2001. The Nasdaq
spiked above this fall's downtrend line crossing near 2950 on Monday.
Multiple closes above this resistance level are needed to confirm a
breakout and trend change has taken place. Meanwhile, the rally in
tech stocks helped pull the broader market higher on the day. Closes
above last week's high crossing at 10,917.30 would open the door for
a possible test of last spring's high crossing at 11,425.40.

INTEREST RATES March bonds posted a inside day with a lower close as
it consolidated some of last week's gains. Light pressure came from
today's rebound in the equity markets. Stochastics and RSI are
bullish but becoming overbought warning traders that a short- term
top may be in or near. Closes below November's uptrend line crossing
near 102-24 would signal a top and trend change has taken place.

CRB INDEX closed higher on Monday led by gains in energies, some
foods, and fiber. The CRB continues to consolidate below this fall's
high of 234.38. Closes above this resistance level or below the
late-November reaction low crossing at 228.04 are needed to clear up
near-term direction.

ENERGIES The energy markets closed higher on Monday due to short
covering as Iraqi crude oil exports remain halted for the 11th day
and natural gas prices surged due to cold weather moving across the
United States. Momentum indicators are bearish but becoming oversold
hinting a short-term bottom in January crude oil and the products may
be near. Closes above last Thursday's highs in any or all of the
complex would strongly suggest a low has been posted.

CURRENCIES the March Dollar extended its short covering bounce off
last Thursday's low and closed above broken trendline support
crossing near 114. Closes below last week's low at 112.64 are needed
to confirm the recent trendline breakout. However, momentum
indicators have become oversold hinting a short covering bounce is
possible before this fall's decline continues. The March Swiss Franc
and D-mark closed lower on Monday as profit taking from last week's
continues. The overbought condition of a number of momentum
indicators that hints further setbacks is possible before the
corrections are over. The March Japanese Yen posted an inside day
with a higher close due to light short covering as it extends the
current trading range. Momentum indicators have turned bullish
signaling sideways to higher prices near-term are possible. Closes
above .9279 or below .9088 are needed to clear up near-term direction
in the market.

PRECIOUS METALS were closed mixed on Monday. February gold extended
its setback off last Thursday's high due to the rebound in the U.S.
Dollar and in doing so turned a number of momentum indicators neutral
to bearish. Closes below November's uptrend line crossing near 271.80
would confirm the rally off October's low has likely come to an end.
March silver posted an inside day with a higher close due to light
short covering as it consolidated some of last Friday's losses. While
another day or two of consolidation is possible, the door is open for
a test of November's low at 4.69 cents later this month. March copper
closed higher on Monday but near session lows due to profit taking
ahead of the close. Today's spike of the 62% retracement level
crossing at .8947 followed by the low-range close is a warning to
bulls that a short-term top may be in or near. Closes below last
Friday's low crossing at 87.55 would likely turn a number of momentum
indicators bearish and increase the odds that a short- term top has
been posted.

GRAINS closed lower on Monday. March corn posted another inside day
with a lower close as traders squared positions ahead of Tuesday's
supply and demand reports. Additional pressure came from news that
China sold around 1 million tons of corn on Friday. Expectations for
additional sales by China later this week added to the bearish tone.
Traders are looking for the USDA to lower their export projections by
50-100 million bushels in tomorrow's reports. Today's export
inspection report came in at a disappointing 28.394 million bushels
verse 39.660 million bushels last week. March wheat also closed lower
on Monday due to spillover weakness from corn. Traders were reluctant
to buy wheat on chances that some of the hard winter wheat crop may
experience winterkill due to the winter storm rolling across the
plains. Traders are expecting to see the USDA lower its export
projection by some 25-million bushels due to this fall's slow export
pace. March wheat is challenging the lower boundary of this fall's
trading range at 2.69. If this support gives way, 2.63 1/2 then 2.50
are potential targets later this winter.

SOYBEAN COMPLEX closed mixed on Monday. January beans closed
fractionally higher on Monday due to light position squaring ahead of
tomorrow's supply and demand reports. The trade is looking for a
25-35 million bushels increase in the USDA export projection due to
this fall's strong export sales. Multiple closes above fib resistance
crossing at 5.10 3/4 would open the door for a possible test of this
fall's high at 5.25 later this winter. January soybean meal closed
higher on Monday thereby confirming last Friday's upside reversal.
Expectations for continued strong export demand through this winter
in both the Asian and European markets will continue to underpin the
meal market. Closes above the late- November high crossing at 193.50
would renew November's rally and set the stage for a test of weekly
resistance crossing at 202.50 later this month. January bean oil
posted an inside day with a lower close on Monday as it extends last
week's consolidation pattern. At the same time, momentum indicators
are bearish signaling sideways to lower prices near-term are
possible. A neutral to bearish supply and demand report on Tuesday
may provide the catalyst needed to renew the decline off last week's
high. The stage appears to be set for a test of the late-November low
at 14.64 later this month.

LIVESTOCK closed mixed on Monday. February hogs closed slightly
higher on Monday but near session lows as profit taking ahead of the
close erased early strength tied to weather concerns. Momentum
indicators are bullish but diverging warning traders that a broad
double top may be forming. Closes below last Friday's reaction low
along with a downturn by stochastics would increase the odds a top
has been posted. February cattle posted an inside day with a lower
close as it consolidated some of last week's gains. News that the
heaviest snowfall stayed away from cattle-feeding areas limited gains
in the market, which fell ahead of the close due to light profit
taking. At the same time, cold weather is expected to slow gains,
which will help underpin the market. Momentum indicators are bullish
hinting a test of long-term resistance crossing near 77.92 is still
possible later this month.

FOOD & FIBER markets were mixed on Monday. March coffee posted an
inside day with a lower close on Monday as it consolidated some of
last Friday's losses. However, today's low-range close signals
additional weakness is possible later this week. If the decline
continues, the August 1993 low crossing at 66.25 is March's next
target. March cocoa closed lower on Monday signaling the two-day
bounce off last Wednesday's low has come to an end. Today's loss
turned a number of momentum indicators neutral to bearish signaling a
test of November's low at 713 is possible. Closes below this support
level would open the door for a test of psychological support
crossing at 700 later this winter. March sugar posted a downside
reversal on Monday due to a lack of cash buying. March continues to
consolidate above minor support crossing at 950. However, momentum
indicators remain bearish signaling sideways to lower prices into the
end of the year are possible. March cotton posted an inside day with
a higher close due to light position squaring ahead of Tuesday's
supply and demand report. The big question is whether or not the USDA
will lower world production enough to off set lower US demand. Closes
above 69.25 or below 66.90 cents are needed to clear up near-term
direction in the market.

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T O P   N E W S
_____________________________________________________________________

STOCKS

Japan Stocks Review: Up 2.2%; tops key 15,000 on strong Nasdaq
http://news.ino.com/summary/?id=24042
Add1: US Equities Review: Nasdaq up 3%, DJIA inches up, analysts bullish
http://news.ino.com/summary/?id=24051
UK Stocks Review: FTSE gains as techs maintain momentum
http://news.ino.com/summary/?id=24050

FOREX

US FX Review: Euro falls on M&amp;A activity, US political woes
http://news.ino.com/summary/?id=24044
Asia FX Review: Yen edging higher against dollar and euro
http://news.ino.com/summary/?id=24041
Europe FX Review: Sterling bought heavily in M&amp;A-related trade
http://news.ino.com/summary/?id=24043

CREDIT

US Credit Review: Bonds decline sharply as equities gain
http://news.ino.com/summary/?id=24039
Europe Credit Review: Debt prices slip but display resilience
http://news.ino.com/summary/?id=24046
Japan Credit Review: Mar falls on firm stocks, short-term rates' rise
http://news.ino.com/summary/?id=24049

COMMODITIES

US Futures Summary: Energy boosts CRB to 1-week high
http://news.ino.com/summary/?id=24048
Japan Commodity Summary: Japan's Tokyo, Yokohama agricultural commodities 
futures prices
http://news.ino.com/summary/?id=24045
CRB Outlook: Hovering around neutral
http://news.ino.com/summary/?id=24047

EXCHANGES

Annual Changes To The Nasdaq-100 Index
http://news.ino.com/press/index.cgi?release=23004
CBOT To Launch 5-Year Agency Note Futures And Options
http://news.ino.com/press/index.cgi?release=23003

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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

CCN2   Cocoa Jul 2002                                888        89  +9.88
NGF1   Henry Hub Natural Gas Jan 2001              9.413     0.829  +9.77
NDZ0   NASDAQ 100 Index Dec 2000                 2982.00    221.50  +8.13
PNG1   Propane Feb 2001                           0.6800    0.0425  +6.85
SGH1   S&P 500/BARRA Growth Index Mar 2001        780.50     37.00  +5.00
YSZ0   NYSE Small Composite Dec 2000              658.50     29.30  +4.58
MVZ0   Value Line Index. Mini Dec 2000           1129.00     49.00  +4.50
HOG1   Heating Oil Feb 2001                       0.9462    0.0383  +4.02
HUG1   New York Harbor Unleaded Gasoline Feb 20    0.7740    0.0297  +3.78
GIZ0   Goldman Sachs Commodity Index Dec 2000     256.00      9.05  +3.68

LOSERS

BDF1   Oriented Strand Board Jan 2001             160.00     -8.00  -4.97
NGK3   Henry Hub Natural Gas May 2003              3.710    -0.106  -2.75
CCH1   Cocoa Mar 2001                                719       -14  -1.91
XWZ1   Wheat Dec 2001                                316        -5  -1.56
XEZ1   Soybean Meal Dec 2001                         175      -2.5  -1.43
SMZ1   Soybean Meal Dec 2001                         175      -2.5  -1.41
EJH1   Euro/Japanese Yen Mar 2001                  95.97     -1.13  -1.16
DAG1   BFP Milk Feb 2001                            9.55     -0.11  -1.14
XRF1   Soybean Oil Jan 2001                        15.03     -0.17  -1.14
LBF1   Random Length Lumber Jan 2001              220.30     -2.50  -1.13
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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

QSCG   QS COMMUNICATIONS AG ADS                    9 5/8   4 10/32  +80.23
VATA   VERSATA INC                                 9 5/8   2 30/32  +43.12
QRSI   QRS CORP                                    7 7/8   2 13/32  +43.02
LTRX   LANTRONIX INC                               8 3/4     2 3/8  +39.58
EPAY   BOTTOMLINE TECHNOLOGIES                        27   7 22/32  +38.92
SIMG   SILICON IMAGE                             8 21/32   2 11/32  +37.13
TUTS   TUT SYSTEMS                                 9 3/8     2 1/2  +36.04
ISLD   DIGITAL ISLAND INC                          5 3/8     1 3/8  +34.38
NCNX   NUCENTRIX BROADBAND NETWORKS             16 30/32     4 1/4  +34.00
MCOM   METRICOM INC                             12 18/32    3 3/32  +32.57

LOSERS

JNIC   JNI CORP(IPO)                              34 3/4       -28  -44.44
GELX   GELTEX PHARMACEUTICALS                         48 -13 14/32  -21.94
INSP   INFOSPACE INC                             11 6/32  -2 17/32  -18.49
BSTE   BIOSITE DIAGNOSTIC                       28 30/32    -6 5/8  -18.37
SIRI   SIRIUS SATELLITE RADIO INC                25 2/32  -5 10/32  -17.45
ISRG   INTUITIVE SURGICAL                          8 3/8  -1 19/32  -16.67
RPS    MORGAN STAN DW 6% RESET PERQS               7 3/4    -1 3/8  -15.49
PCG-CA PG&E CAPITAL I 7.90% QUIPS                 19 5/8  -3 19/32  -15.31
PIR    PIER 1 IMPORTS                                  9    -1 5/8  -15.29
SHPGY  SHIRE PHARMACEUTICALS ADS                43 22/32  -7 26/32  -15.15

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