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 down 0.21 points to 189.30. The
US Dollar Index fell 0.93 points to 118.86.

The Dow Industrials softened 220.10 points, at 9687.09, while
the S&P 500 fell 27.78 points, last seen at 1094.44. The
Nasdaq Composite fell 55.71 points to 1855.53.
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The STOCK INDEXES http://quotes.ino.com/exchanges/?c=indexes

Stock indexes closed sharply lower on Monday as mounting worries over
accounting irregularities triggered today's sell off. A crisis
appears to be emerging as to how corporate America accounts for its
financial transactions, which has seriously eroded investors
confidence in equity investing. The NASDAQ posted a new low close for
the year and is poised to test the 38% retracement level of the
September/January rally, which crosses at 1826.96. The NASDAQ closed
down 55.71 points at 1855.53. The March S&P 500 index also closed
sharply lower on Monday erasing all of last week's short covering
gains and is poised to renew its decline off January's high. Closes
below last week's low crossing at 1081.50 would open the door for a
possible test of the late-October low crossing at 1060.60 later this
month. March closed down 28.10 points at 1095.30.

The Dow closed sharply lower on Monday erasing most of last week's
short covering gains. The backlash from the Enron debacle continues
to be felt by the market, as investors are becoming more skeptical
about accounting practices of companies. Just a hint of impropriety
in a companies accounting practice is enough to send that stock
tumbling sharply lower. Today's sell off started in telecommunication
stock as William Communications indicated that it might default on
its debt payments. The Dow needs to close above last week's high at
9943.90 to confirm that last week's low marked an important bottom.
Closes below 9529.40 would renew its decline off January's high,
which could lead to a possible test of long-term fib support crossing
at 9318.20 later this month.

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

March T-bonds closed higher on Monday thereby confirming last
Friday's upside reversal. Much of today's strength was due to a
flight to quality move on the part of investors as equity markets
were pummeled. Today's high fell just short of testing January's high
crossing at 104-11. If this resistance level is cleared, January's
high crossing at 105- 06 is a potential target later this month.
Today's rally turned stochastics and a number of other short-term
momentum indicators bullish signaling that additional strength is
possible near-term.

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

The CRB index closed modestly lower on Monday due to weakness in
hogs, silver, and energies. However, today's shallow setback leaves
the CRB index in good position on Tuesday to extend its rebound off
last week's low. Closes above the previous reaction high crossing at
190.29 would confirm a bottom while opening the door for a
larger-degree rebound into mid-February. Short-term momentum
indicators are turning bullish thereby increasing the odds that a
bottom was posted last week.

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

The energy markets closed lower on Monday as it corrected its
knee-jerk reaction to news that Kuwait has lost production of 600,000
barrels per day due to a fire on Friday. Additional pressure came
from a bearish shift in the extended weather forecast for the U.S.
The National Weather Service is now calling for above normal temps
for much of the U.S. over the next two weeks, which will reduce the
demand for heating oil and natural gas. With abundant supplies and
expectations for a continuation of weak demand, look for sideways to
lower prices in energies to continue near-term.

March crude oil closed lower on Monday thereby signaling an end to
the two-day short covering bounce off last Wednesday's low. I would
not be surprised to see subdued trading on Tuesday as traders await
this week's API inventory reports. Momentum indicators remain bullish
signaling that sideways to higher prices are still possible during
the first half of February. However, it is unlikely that March will
breakout above the upper boundary of this winter's trading range
crossing at 22.50 in the near future.

March heating oil closed sharply lower on Monday as the bearish
reaction to the oilfield explosion in Kuwait last week faded. Today's
close below minor trading range resistance crossing at 54.30 leaves
the door open for sideways to lower trading on Tuesday ahead of this
week's API inventory reports. The upturn by stochastics and the RSI
signals that sideways to higher prices are possible during the first
half of February.

March unleaded gas closed lower on Monday as the bullish reaction to
last week's oil explosion in Kuwait faded. At the same time,
stochastics and the RSI are bullish signaling that sideways to higher
prices are possible during the first half of February however, it is
unlikely that January's high crossing at 64.35 will be exceeded
before contract expiration.

March Henry Hub natural gas closed lower on Monday due in part to a
bearish shift in the extended weather forecast for much of the nation
over the next two weeks. Nevertheless, last week's trendline breakout
strongly suggested that a short-term bottom has been posted. Momentum
indicators are bullish signaling that sideways to higher prices are
possible near-term.

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

The March Dollar closed sharply lower on Monday and below initial
trendline support drawn across January's lows, which crosses near
119.50. While today's low-range close leaves the door open for a
steady to weaker opening in access trading, I would not be surprised
to see a higher close on Tuesday due to short covering as March might
try to consolidate some of its recent losses. Stochastics and the RSI
are very overbought and turning bearish hinting that a top is in or
near. Closes below the previous reaction low crossing at 117.85 would
confirm that a top has been posted.

The March Swiss Franc closed higher Monday due to short covering.
Closes above last week's high crossing at .5898 would confirm that a
double bottom with December's low was posted last week while opening
the door for a short covering rebound during the first half of
February. Today's rebound turned the daily ADX neutral from its
bearish mode hinting that a low is in or near. Additional strength
this week would confirm a downturn by the ADX and that a double
bottom has been posted.

The March Canadian Dollar closed lower on Monday and in doing so
turned a number of short-term momentum indicators neutral to bearish.
March's inability to sustain last week's breakout above January's
high of .6300 is short-term bearish although I would not be surprised
to see a corrective bounce on Tuesday on ideas that today's sell off
was somewhat overdone.

The March Japanese Yen closed higher on Monday and above last fall's
downtrend line crossing near .7550 and broken support at .7558.
Multiple closes above these key price levels are needed to confirm
today's upside breakout, which would then open the door for a
larger-degree rebound during at least the first half of February.
Initial fib resistance begins at .7648.

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

April gold closed sharply higher on Monday and above January's double
top crossing at 290.50 to renew its rally off December's low. If the
rebound continues, the 75% retracement level of last fall's decline
crossing at 291.60 is April's next target. If this resistance level
is cleared, last September's high crossing at 297.50 is a potential
target for April later this month. Today's rally was triggered by
weak equity market's that led to a flight to quality move on the part
of some investors. Stochastics and the RSI are bullish signaling that
additional strength is possible during the first half of February.

March silver posted an inside day with a lower close on Monday as it
consolidated some of last Friday's short covering gains. Closes above
broken support crossing at 4.32 are needed to signal that a
short-term bottom has been posted. Momentum indicators are oversold
signaling that additional short covering is possible this week. If
the decline off January's high resumes, December's low crossing at
4.21 is March's next target.

March copper closed lower on Monday due to light profit taking. Early
strength tested last Friday's high however, when a lack of
follow-through buying failed to materialize near session highs, a
sell off was triggered. March continues to consolidate around
November's high crossing at 73.70, which marks key resistance. If
last week's rally continues, weekly fib resistance crossing at 76.88
is March's next upside target. Stochastics and the RSI are bullish
but diverging warning bullish traders to use caution as a double top
might be forming.

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

March corn closed higher on Monday due to short covering. March was
mostly steady in early trading as the weekly export inspection report
came in at 31.04 million bushels, which was at the low-end of
expectations. Traders and analysts are still concerned that the USDA
will be forced to cut its export projection of 1.975 billion bushels
this year possibly as early as this Friday's supply/demand report.
However, others indicate that export demand should begin to pickup in
the coming weeks. The recent decline in the Dollar is helpful to corn
exports however, the Dollar will need to trade below December's low
at 115.11 to have a significant impact on export sales. Technically,
March corn is holding above long-term support crossing at 2.04 1/4.
Momentum indicators are oversold but have not confirmed a bottom has
been posted. Closes above last summer's downtrend line crossing near
2.09 are needed to temper the near-term bearish outlook in the
market.

March wheat closed sharply lower on Monday and below minor support
crossing at 2.83 to renew its decline off January's high. The door is
open for a test of the December low crossing at 2.77 later this week.
Momentum indicators are bearish signaling that December's low is
within reach of the market. Much of today's selling was due to fund
selling of some 2,000 contracts due to a combination of slow export
sales of soft red winter wheat, bearish seasonal trends and last
week's beneficial moisture event. This morning's export inspection
report came in at 14.960 million bushels, which was inline with
expectations. Unless there is a marked decline in the strong U.S.
Dollar to make U.S. wheat more competitive on the world market, wheat
will remain under pressure as it searches for a price level that will
trigger new foreign buying.

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

March soybeans closed sharply higher on Monday due to technical short
covering, which confirmed last week's breakout above January's
downtrend line. Today's close above last week's reaction high
crossing at 4.32 tempers the near- term bearish outlook in the
market. Today's rally was triggered by a combination of fresh news
out of Washington regarding possible changes in the soybean loan
rate, the bank holiday in Argentina and renewed dryness in Southern
Brazil. However, I would not put too much stock in today's rally from
a bullish standpoint, as it was mostly technical. Buy stops above
last week's high helped to exaggerate today's rally, which appears to
have been overdone thereby leaving the door open for a possible
setback in turnaround Tuesday market action. It will take closes
above the reaction high crossing at 4.39 1/2 to increase the odds
that the February low has been posted. Today's rally did turn a
number of short-term momentum indicators neutral to bullish hinting
that last week's lows should not be taken out anytime soon.

March soybean meal posted an inside day with a higher close on Monday
due to short covering triggered by spillover strength from soybeans.
Additional support came from strong livestock prices and a return to
more normal like winter weather conditions, which should support
higher domestic demand if only for a few weeks. Closes above last
week's high crossing at 153.50 are needed to temper the near-term
bearish outlook in the market. Stochastics and the RSI are still
bearish signaling that sideways to lower prices are possible
near-term.

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

April hogs spiked to a new contract high in early trading before
profit taking led to a lower close on the day. Additional pressure
came from mixed cash signals with calls for steady bids on Tuesday
and apprehension ahead of the weekly pork belly storage movement
report on Tuesday. Slaughter weights are light enough that producers
can wait out packers for a brief period of time as they try to break
cash bids in an attempt to shore up shrinking profit margins.
Technically, this month's rally to new contract highs has set the
stage for a likely test of the next level of long-term resistance
crossing at 63.60 possibly later this week. Stochastics along with a
number of other short- term momentum indicators are bullish hinting
that we could see one more drive to new highs during the first half
of February before a top is posted.

April cattle closed higher on Monday but near session lows due to
profit taking ahead of the close. Early strength led to a spike above
the 75% retracement level of last year's decline crossing at 76.00.
If this resistance level is cleared, the bottom of last summer's
trading range crossing at 77.10 is a potential target later this
month. Momentum indicators are overbought and turning neutral warning
bulls that time is no longer on their side. Closes below last
Friday's reaction low crossing at 75.00 would open the door for
additional profit taking and a likely test of last fall's uptrend
line crossing near 74.00. Closes below this support level are needed
before a major top can be confirmed.

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

March coffee closed slightly higher on Monday but near session lows.
Early support was due to spillover short covering following last
Friday's upside reversal. However, March's inability to close above
last week's high crossing at 45.85 along with today's low-range close
leaves the door open for sideways to lower prices on Tuesday.
Momentum indicators are very oversold hinting that a low might be in
or near. However, closes above today's high crossing at 46.20 are
needed before this is confirmed.

March cocoa closed sharply higher on Monday due to the exercise of
March options and a combination of speculative and trade short
covering. At the same time, there were no new developments in the
current supply/demand situation, which leaves the market vulnerable
to a setback on Tuesday. Stochastics and the RSI are bullish
signaling that sideways to higher prices are still possible into
mid-February. If the rebound continues, January's high crossing at
1422 is March's next target. Closes above this resistance level would
confirm an upside breakout of this winter's trading range thereby
renewing its rally off last summer's low.

March sugar posted an outside day down with a lower close on Monday,
as it is poised to test last October's low crossing at 611 possibly
later this week. Much of today's selling pressure was fund related as
they added to their net short positions. Additional pressure was due
to the markets focus on the expected huge Brazilian cane crop, which
begins harvest in May. Momentum indicators have entered their
respective oversold zones but remain bearish signaling that
additional weakness is possible near-term.

March cotton closed higher on Monday as it extended last Friday's
short covering gains. Additional support was due to improving world
cotton prices and expectations for a rebound in the U.S. economy
during the first half of this year. However, March cotton will remain
range bound until reduced planted acreage is confirmed and further
signals of global economic recovery surface. A sell off late in the
day tempered some of today's gains leaving the door open for a
possible setback on Tuesday. Closes above January's high crossing at
38.50 would open the door for a possible test of the upper boundary
of this winter's trading range crossing at 39.80 later this winter.

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I N O   N E W S
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MidAm January Trading Volume 24,569 Contracts
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Coffee 'C' Contract On NYBOT Sets Record Open Interest
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CFTC Settles Case Against Chicago Firm And Managing Director
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CFTC Issues Annual Guidance For Commodity Pool Operators
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CBOT January Volume 9.1% Higher Than A Year Earlier
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Record January Volume For LIFFE
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Singapore Derivatives Volume Grows 5% In January
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Hong Kong Market Continues To Attract Overseas Investors
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Euronext Lisbon Joining Amsterdam, Brussels And Paris
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European Electricity Trading Down In 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

CCH2   Cocoa Mar 2002                               1400        50  +3.70
SIZ3   Silver Dec 2003                             4.383     0.102  +2.32
BOH2   Soybean Oil Mar 2002                        15.47      0.31  +2.04
GIJ2   Goldman Sachs Commodity Index Apr 2002     172.00      3.50  +2.02
LHJ2   Lean Hogs Apr 2002                         61.900     1.250  +2.01
SN2    Soybeans Jul 2002                         441 1/4     7 3/4  +1.78
XSH2   Soybeans Mar 2002                             434     7 1/4  +1.70
PBN2   Frozen Pork Bellies Jul 2002               78.100     1.225  +1.57
SMN2   Soybean Meal Jul 2002                         148       2.1  +1.44
OU2    Oats Sep 2002                             143 1/2         2  +1.41

LOSERS

DBK2   Butter May 2002                           132.000    -4.000  -2.94
MVH2   Value Line Index. Mini Mar 2002           1198.00    -34.50  -2.80
HOK2   Heating Oil May 2002                       0.5426   -0.0152  -2.74
SPZ2   S&P 500 Dec 2002                          1133.20    -30.20  -2.67
NKM2   Nikkei 225 Stock Avg Jun 2002                9705      -255  -2.63
YSH2   NYSE Small Composite Mar 2002              561.25    -14.35  -2.49
RY0    Russell 1000 Index Cash                    578.26    -14.25  -2.41
VGY    Value Line Index - Cash Geometric Feb 20    352.30     -8.59  -2.38
YJH2   Mini Dow Jones Industrial Mar 2002           9673      -234  -2.36
XWH2   Wheat Mar 2002                            280 3/4    -6 3/4  -2.35

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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

VSF    VITA FOOD PRODUCTS                           5.65      1.00  +20.62
STST   SENSYTECH INC                              8.0000    1.4300  +20.52
SM     SULZER MEDICA ADS                            6.61      1.05  +18.75
ELXS   ELXSI CORP                                 8.8600    1.2500  +16.69
ILI    INTERLOTT TECHNOLOGIES                       5.00      0.55  +11.96
RMCI   RIGHT MGMT CONSULTANTS                    23.3100    2.3600  +11.27
TESTC  TEST SECURITY                            113.6700   12.2500  +10.73
FVE    FIVE STAR QUALITY CARE INC                   8.75      0.85  +10.43
FINL   FINISH LINE 'A'                           16.6180    1.5400  +10.23
HGMCY  HARMONY GOLD MINING ADR                    8.6000    0.7700  +9.75

LOSERS

ELN    ELAN CORP ADS                               14.85    -15.10  -50.42
TPC    TRITON PCS HOLDINGS INC CL A                10.20     -3.14  -23.35
PCSA   AIRGATE PCS INC                           14.0400   -3.8700  -21.32
DYII   DYNACQ INTL                                6.0700   -1.5300  -20.08
DIGL   DIGITAL LIGHTWAVE                          5.1600   -1.2500  -19.97
EUNI   EUNIVERSE INC                              5.4000   -1.1700  -17.54
AMRN   AMARIN CORP PLC ADS                       16.8000   -3.5000  -17.00
EXTR   EXTREME NETWORKS                          11.5600   -2.2800  -16.72
TYC    TYCO INTERNATIONAL                          29.90     -5.93  -16.64
CIEN   CIENA CORP                                10.1200   -1.9800  -16.50
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T H A N K   Y O U
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