W E D N E S D A Y   E X T R E M E   M A R K E T S
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Wednesday: The CRB Index is down 0.75 points to 209.77. The
US Dollar Index moved lower 0.04 points to 118.18.

The Dow Industrials moved lower 166.50 points, at 10872.64, while
the S&P 500 moved lower 19.85 points, last seen at 1248.08. The
Nasdaq Composite eased 91.04 points to 2084.50.

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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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LIVESTOCK: August live cattle closed off $0.45 at $73.70 today.
Speculative traders took profits today after the recent big runup had
pushed the market into oversold territory. I would not be surprised
to see more of a downside correction soon. Prices pushed to a fresh
four-month high Tuesday. Resistance lies at the $74.50 level. First
support lies at the $73.40 level.

August feeder cattle closed off $0.27 today, at $91.55. Prices scored
an "inside day" and took a rest after they hit a new contract high
Tuesday. Feeders are still over-extended on a short-term technical
basis. A bull flag looks to be forming on the daily bar chart, as
this week we saw an upside breakout from that pattern. First
resistance is seen at $92.00. Looking at the weekly continuation
chart for nearby futures, the next upside objective for the bulls is
resistance just above $92.00. First support is seen at $91.00.

August lean hogs closed up $1.65 today at $63.35. Prices closed near
the session high. The strong rebound continued today, after limit-up
gains seen Tuesday. The market just got too extended on the downside,
especially in the wake Friday's bullish USDA Hogs & Pigs report. Fund
buying was featured today, sources said. Prices today broke out above
and negated a steep five-week-old downtrend. The bulls now have the
near-term edge. However, I would not be surprised to see some
sideways consolidation in the coming sessions. Next resistance lies
at $64.00. First support is located at the 62.00 level.

GRAINS: July corn futures closed up 3/4 cent at $1.90 today. It was a
quiet "rest day" today after prices Tuesday scored another fresh
contract low. Funds have loaded up on the short side now. Good
growing weather in the Midwest and no threatening weather patterns in
the forecast continue. This market has no summertime weather premium
built into it, which will make it very susceptible to an upside spurt
even with a minor weather scare. I don't think there is much downside
left in corn, but I don't want to be a bottom-picker,
either--tempting as it may be at these low prices. Next support is
seen at $1.87 3/4. Next resistance is seen at $1.95.

July soybeans closed 1 3/4 cents lower at $4.37 1/2 today. Technical
damage occurred in the market this week as a five-week-old uptrend
line on the daily bar chart was penetrated on the downside and
negated. Now, it also looks like a minor double-top reversal pattern
could be playing out on the daily bar chart. Good growing weather and
no weather threats on the horizon have allowed the bears to take
control of this market. Funds have been good sellers in the bean pit
this week. Still more downside action this week would not surprise
me. First support is seen at the $4.35 area. First resistance is now
seen at $4.45 level.

July soybean meal closed off $1.60 at $160.20 today. Another down day
today negates a five-week-old uptrend line on the daily bar chart.
Bears are gaining steam now. After prices pushed to a fresh
four-month high Friday, they have seen a solid downside correction
this week. Bulls need to stop the bleeding soon or this weakness will
quickly become more than a downside correction. Next support comes in
at the $158.00 area. First resistance is seen at $162.60--today's
high.

July bean oil closed 6 points higher at 14.80 cents today. Today's
follow-through buying has confirmed a key reversal up, after prices
pushed to a fresh contract low on Tuesday and then staged a strong
rebound. This week, spreaders are unwinding short oil and long meal
positions. Oil is still technically much weaker than beans or meal.
But I would be surprised if there is much downside left in oil. Next
resistance comes in at 15.00 cents. Next support is seen at 14.60
cents.

July Chicago wheat closed 3/4 cents lower at $2.64 today. Prices
closed near the session low as traders looked at slack demand
prospects. Earlier in the session, prices were boosted by heavy
storms that hit Kansas and Oklahoma the past 24 hours. First support
lies at the $2.58 1/2 level--the contract low. Next resistance is
seen at $2.70.

K.C. July HRW wheat closed up 1 cent at $3.20 1/4 today. Prices
gapped higher today in the wake of the heavy storms that hit parts of
the Plains the past 24 hours. However, prices closed on the session
low. Still, the upside gap was not filled with the late retreat.
Also, there was follow-through buying today and a key reversal up on
the daily bar chart was confirmed. Recently, this market has seen a
series of V reversals--both up and down. Trading remains volatile.
Next resistance is seen at the $3.25 level. Next support is seen at
$3.20.

July oats closed up 1/2 cent at $1.12 1/4 today. Prices closed near
the session low today, as did wheat. The choppy activity at lower
price levels also favors the bulls. The past three weeks have seen
another minor uptrend develop on the daily bar chart. Oats will
continue to look to corn and wheat for direction. Next resistance
comes in at the $1.14 level. First support now comes in at $1.10.

SOFTS: July N.Y. sugar closed 15 points lower at 8.59 cents today.
Prices today dropped to another fresh four-week low as the recent
higher volatility at higher price levels has proven bearish. Also,
the rare and usually bearish broadening formation continues to play
out on the daily bar chart. Bears have the technical edge at present.
However, the market is overdone on the downside at present, on a
technical basis. Next support comes in at 8.40 cents--today's low.
First resistance is now seen at 7.72 cents--today's high.

July N.Y. coffee closed 65 points lower at 59.15 cents today. Prices
today came within 10 points of the contract low set in April. Bears
rule. Bulls can only hope for a strong rebound from the present price
level, which would signal a big double-bottom reversal. Still, given
the upcoming frost season in South America, I suspect the downside
from present levels will be limited in the coffee market. Speculative
short-players won't want to get too brave at this time of year. First
support comes in at the contract low of 58.80 cents. First resistance
is now seen at 63.00 cents.

July N.Y. cocoa closed $39 lower today, at $964. More technical
damage was inflicted by the bears today as prices hit another fresh
three-week low, as there was follow-through selling from Friday's
gap-lower trade. The bears are in control, but the market is
short-term overdone on the downside at present. Next support comes in
at $955. First resistance is now seen at $1,009--today's high.

July cotton closed 32 points lower at 40.72 cents today. Prices hit a
fresh contract low just yesterday, in the wake of a bearish USDA
cotton consumption report last Friday. Cotton is in a strong bear
market and any rebounds will be selling opportunities for the
bears--for now. My bias is still that we are not that far from a
bottoming process. Next support lies at 39.95 cents--the contract
low. First resistance is seen around 42.00 cents. Recently, I put
December New York cotton futures on my "Radar Screen" for a potential
long-side trade in the coming weeks. But first (and importantly),
this market has to me show solid strength, including some basing
activity at these lower levels.

July orange juice futures closed 90 points higher today, at 80.40
cents. Trading has turned volatile lately, but it still favors the
bullish camp. Bulls pushed prices to a fresh three-month high just
last Friday. Prices are still in an uptrend on the daily bar
chart--albeit a choppy one. Next resistance is now seen at 82.00
cents. Next support now comes in at 79.00 cents.

July lumber futures closed the limit of $10.00 lower today, at
$322.30. "What goes up, must come down." A V-Top reversal is playing
out in lumber. I still would be surprised if the upside fireworks are
over. The market was way overdone on the upside and this still could
be just a big correction before still-higher highs are scored. Expect
more volatility in the near term--on the upside and downside. The
next upside objective for the bulls is the $350.00 level. First
support is seen at $315.00.

METALS: August COMEX gold futures plummeted by $7.70, to 4267.40 an
ounce. Heavy long liquidation and stop-loss selling were featured in
the pit. The recent Commitments of Traders report showed the small
speculators had loaded up on the long side of gold futures recently.
Today, those weak longs were coughing up their positions. News wire
reports could offer no fundamental reason for the collapse in prices.
Technically, once gold dropped to near the $270 level, basis August
COMEX futures, the door was open for stop-loss selling and general
long liquidation. A big V-Top reversal has now formed and played out
on the daily bar chart. Pit reports said there was not much fresh
short selling interest Wednesday. Once again, the gold bulls mustered
the strength to show an impressive upside move, only to be kicked in
the teeth when a lack of follow-through buying interest at higher
levels prompted a price vacuum on the downside. There is a support
level around the $264 area, basis August futures. If that level gives
way, then the next support comes in at the $260 area. This market is
now short-term oversold, on a technical basis. Next resistance on the
upside is seen at the $275 area. For bulls to really get back on
their feet, they must push prices back above the $290 level. If
volatility persists, it will favor the bulls.

July silver closed off $0.095 today, at $4.445 an ounce. Like gold,
long liquidation and stop-loss selling hit silver today, and it was
prompted by the sell of in gold. Prices have now backed well off last
week's high and could be forming a V-Top reversal on the daily bar
chart. Bulls today lost much of their momentum they had gained that
saw prices push to a three-month high. Still, the recent increase in
volatility is suggestive of a bottoming process in silver. Next
support is seen at $4.40. First resistance is now seen at $4.50.

July N.Y. copper closed off 45 points today, at 76.25 cents. The sell
off in the precious metals has impacted copper this week. While this
deals the bulls a near-term setback, the higher volatility at lower
levels does favor the bulls. My bias is still that the lows are in
place for copper. Next support is seen at 75.00 cents. Next
resistance is seen at 79.00 cents.

ENERGIES: July crude closed off $0.14 at $28.52 today. Prices this
week are correcting from the big beating they took late last week.
Bears still have the edge, and in fact a bearish flag or pennant
pattern may be forming on the daily bar chart. Next resistance is
seen at 29.50. Next support lies at $28.00.

July heating oil closed 2 points lower today, at .7784. Prices are
still correcting downward after they last week hit a fresh
eight-month high. Bulls still have the edge. Next resistance is seen
at 80.00 cents. Next support is seen at 77.00 cents.

July unleaded gasoline closed 139 points lower at .9450 today. Prices
closed near the session low as the bears gain confidence. A rare and
usually bearish broadening formation is developing on the daily bar
chart. This increase in volatility at higher price levels suggests a
topping process in the market. Next resistance is seen at $1.00.
First support is seen at $.9300.

July natural gas closed 20 cents higher at $4.01 today. Prices today
saw a decent rebound from a technically oversold condition. The
market is still oversold on a short-term technical basis. Prices hit
a fresh nine-month low just Tuesday. Bears still have the big
advantage. Next support is seen at $3.67--today's low. First
resistance is seen at $4.25.

STOCKS, FINANCIALS, CURRENCIES: The June Euro currency closed 10
points higher at .8567 today. Bears are in control as prices hover
near the recent for-the-move low. In fact, a bearish pennant pattern
may be forming on the daily bar chart. Measuring implications of that
pattern, should a downside breakout occur, point to losses to the
.8300 area. Bulls' only hope is that last week's low of .8502 can
hold the losses. Next support is now seen at .8502. Next resistance
is seen at .8650.

The June Japanese yen closed 19 points lower at .8328 today. Prices
pushed to a fresh two-month high last Thursday and are this week
consolidating those recent gains. The recent push higher moved prices
out above the congestion area that had trapped prices for about two
and one-half months. Bulls still need to show some more upside
strength before I am confident in calling this an upside "breakout."
Next resistance now lies at the .8433 level. First support is now
seen at the .8200 level.

The June Swiss franc closed 8 points higher at .5625 today. Like the
Euro, bulls want to see last week's low hold up before they can gain
any momentum at all. And like the Euro, a bearish pennant pattern
could be forming on the daily bar chart. Measuring implications on a
confirmation of the pattern point to losses to the .5400 area. A
5-month-old accelerating downtrend line is in place on the daily bar
chart. Next support is seen at the .5588 level--last week's low.
First resistance comes in at the .5700 level.

The June Australian dollar futures closed 45 points lower at .5124
today. Prices pushed to a fresh 3-month high last week and bulls can
argue we are seeing corrective consolidation this week. Still,
downside price action last week penetrated on the downside and
negated a seven-week-old uptrend line on the daily bar chart. Bulls
should be worried about this. They need to show some fresh momentum
soon. First support is seen at .5069. First resistance is now seen at
.5225.

The June Canadian dollar closed 33 points lower today, at .6469.
Prices closed near the session low. If prices drop below the May low
of .6425, then bears will be on a level playing field with the bulls.
This currency had been near recent historic lows and I do not think
there is much more downside. In fact, a wedge pattern may be forming
on the daily bar chart that, if confirmed, would likely favor the
bulls. Next resistance is seen at the .6535 level. First support is
now seen at the .6450 level.

The June British pound closed 42 points higher at 1.4264. Prices are
rebounding after last Thursday prices fell below the early April low
of 1.4112. If there would have been follow-through selling, then the
door would have been open to steeper losses. If the losses can be
contained and prices rebound, one could still argue that price action
the past few weeks has been a "basing" before prices eventually turn
north. Next resistance is seen at the 1.4300 level. Next support now
comes in at the 1.4150 level.

The June U.S. dollar index closed 3 points higher at 118.31 today.
Bulls are still in firm control. In fact, a bullish pennant pattern
could be forming on the daily bar chart. The index last week pushed
to a fresh multi-month high. If bulls can push prices above and have
a close above the 119.00 level, then there is likely significantly
more upside potential to this rally, even though the index is still a
bit short-term overbought, technically. There is stiff resistance,
basis the longer-term charts, at the 119.00 area. Next resistance
lies at the 119.00 area. First support is seen at the 117.50 area.

September U.S. T-bonds closed 7/32 higher today at 98 20/32. The
market is consolidating at lower levels. Bears still rule. The next
upside objective for the bulls is the par level--100 even. But any
near-term rebound will be corrective in nature only, until prices can
push above the 102 area. Prices pushed to a six-month low just
recently. First support at 98 6/32.

The September U.S. T-note closed up 4.5 (32nds) today at 102.00.5.
Prices fell to a multi-month low just recently as bears rule. Severe
technical damage has been inflicted recently. First support is seen
at the 101.30.0 level. First resistance is seen at 102.30.5 level.

September Nasdaq futures closed 72.00 lower at 1805.00 today. Bulls
are losing technical ground that they had gained recently with the
push above the 2,000 level. It just shows how the stock indexes will
not let either the bulls or the bears have much of an edge, before
prices reverse. First resistance is now seen at 2,000. First support
is seen at the 1,750 area.

September S&P 500 futures closed 18.70 lower at 1260.10. We are
seeing some consolidation the past few days after prices hit a fresh
three-month high last week. Bulls are still encouraged by the
continuing uptrend off the March low, but they do need to stop the
slide lower seen the past few sessions. My bias is still that any
recovery in the stock market and the stock indexes won't be dramatic,
but a slower grind higher, with fits and starts. First resistance is
now seen at 1300.00. First support is now seen at the 1240.00 area.

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T O P   N E W S
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STOCKS

Japan Stocks Review: Nikkei -2% on Deutsche downgrades/Nasdaq fall
   http://news.ino.com/summary/?id=25601
Add2: US Equities Review: DJIA closes below 11,000 on tech selloff
   http://news.ino.com/summary/?id=25599
UK Stocks Review: Weak tech stocks push FTSE-100 below 5,800
   http://news.ino.com/summary/?id=25607

FOREX

US FX Review: Dollar remains mixed; traders hunting for clues
   http://news.ino.com/summary/?id=25603
Asia FX Review: Euro/yen comes under pressure on broad selling
   http://news.ino.com/summary/?id=25600
Europe FX Review: US fund buying limits euro's losses
   http://news.ino.com/summary/?id=25602

CREDIT

US Credit Review: Only modest gains despite stock market slide
   http://news.ino.com/summary/?id=25598
Europe Credit Review: Bond prices range-bound despite firm M3
   http://news.ino.com/summary/?id=25604
Japan Credit Review: June ends up slightly in range-bound trades
   http://news.ino.com/summary/?id=25606

COMMODITIES

US Futures Summary: Gasoline, gold hammered; natural gas soars
   http://news.ino.com/summary/?id=25605

EXCHANGES

NYBOT Announces New Margin Requirements
   http://news.ino.com/press/?release=24487
KCBT Value Line
 Margin Changes Announced
   http://news.ino.com/press/?release=24486
Pacific Exchange To Trade Options on Instinet Group and USEC
   http://news.ino.com/press/?release=24485
60% Of IPE Holdings Shares Tendered To IntercontinentalExchange
   http://news.ino.com/press/?release=24484
Simon Heale Appointed London Metal Exchange Chief
   http://news.ino.com/press/?release=24483

____________________________________________________________________________

E X T R E M E   F U T U R E S
____________________________________________________________________________

Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

NGN1   Henry Hub Natural Gas Jul 2001              3.981     0.200  +5.25
ZM1    U.S. Treasury 6% Bond Jun 2001          103 184/256   4 15/32  +4.50
LHQ1   Lean Hogs Aug 2001                         63.300     1.600  +2.59
XHQ1   Lean Hogs Aug 2001                          63.27      1.57  +2.54
DAU1   BFP Milk Sep 2001                           15.60      0.38  +2.50
HGK2   Copper May 2002                            0.7905    0.0110  +1.39
OJN1   Orange Juice Froz. Conc. #1 Jul 2001        80.40      1.00  +1.26
MQU1   Mexican Peso Sep 2001                      9.4652    0.1085  +1.16
RRN1   Rough Rice Jul 2001                         5.660     0.060  +1.07
KWN2   Wheat Jul 2002                                346     3 1/2  +1.02

LOSERS

XKM1   Gold Jun 2001                               265.7     -11.9  -4.34
NGJ4   Henry Hub Natural Gas Apr 2004              3.780    -0.159  -4.21
NDM1   NASDAQ 100 Index Jun 2001                 1786.00    -70.50  -3.80
CCN1   Cocoa Jul 2001                                964       -38  -3.79
HUM1   New York Harbor Unleaded Gasoline Jun 20    1.0412   -0.0378  -3.51
XYU1   Silver 1,000 oz. Sep 2001                   448.2     -15.8  -3.42
KIM1   Kilo Gold Jun 2001                            263        -9  -3.31
GCZ2   Gold Dec 2002                                 276      -9.2  -3.24
LBU1   Random Length Lumber Sep 2001              305.40    -10.00  -3.17
PNU1   Propane Sep 2001                           0.5050   -0.0125  -2.42
____________________________________________________________________________

E X T R E M E   S T O C K S
____________________________________________________________________________

Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/stocks/

WINNERS

RHT    RICHTON INTL                                35.60      6.50  +22.41
BCR    BARD (C.R.)                                 56.09     10.09  +21.93
BAU    BACOU USA                                   28.00      4.60  +19.66
TARO   TARO PHARMACEUTICAL IND                     66.09     10.39  +18.65
IPIC   INTERNEURON PHARMACEUTICALS                  6.74      1.01  +17.84
ANST   ANSOFT CORP                                 17.37      2.14  +14.04
MRVT   MIRAVANT MEDICAL TECHNOLOGIES               12.24      1.49  +13.91
TT     TRANSTECHNOLOGY                              8.75      1.05  +13.29
VIP    OPEN-JOINT/VIMPEL COMMUN ADS                17.20      1.90  +12.62
TELM   TELLIUM INC                                 23.02      2.49  +11.66

LOSERS

UNEWY  UNITED BUSINESS MEDIA PLC                   10.69     -9.41  -46.82
EMEX   EMEX CORP                                   16.98     -9.21  -34.89
ASFI   ASTA FUNDING                                 8.71     -2.55  -25.50
AEGN   AEROGEN                                      5.20     -1.74  -25.04
SABA   SABA SOFTWARE                               10.87     -3.08  -21.95
WEBX   WEBEX COMMUNICATIONS INC                    15.00     -4.01  -21.12
TIVO   TIVO INC                                     7.25     -1.83  -20.13
BRZZ   BRIAZZ INC                                   5.40     -1.34  -19.73
ADTK   ADEPT TECHNOLOGY                            10.06     -2.44  -19.15
FFIV   F5 NETWORKS                                 10.39     -2.41  -18.95

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