W E D N E S 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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Wednesday: The CRB Index is up 0.10 points to 195.13. The
US Dollar Index edged higher by 0.16 points to 116.99.

The Dow Industrials dropped 56.46 points, at 10094.09, while
the S&P 500 edged lower 5.57 points, last seen at 1155.14. The
Nasdaq Composite trended lower by 10.89 points to 2044.89.
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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 Wednesday. The NASDAQ gapped up on the
open and traded to new highs for the year early in the session.
However, a sell off ahead of the close due to profit taking led to a
downside reversal on Wednesday. Additional weakness on Thursday is
needed to confirm today's bearish reversal pattern thereby increasing
the odds that a short-term top has been posted. Short-term momentum
indicators are diverging and turning neutral to bearish hinting that
a top is in or near. The NASDAQ closed down 10.85 points at 2044.89.
The March S&P 500 index posted a key reversal down on Wednesday
ending 8.80 points lower at 1154.50. March is poised to test the
Dec./Jan. uptrend line crossing near 1148.70 on Thursday. Closes
below this uptrend line and last week's low at 1136.50 would confirm
that a double top has been posted.

The Dow closed lower on Wednesday as it tested broken fib resistance
crossing at 10,094.10. Today's low-range close sets the stage for a
test of the Dec./Jan. uptrend line crossing near 10,045 on Thursday.
Closes below this support level would increase the odds that a
short-term top has been posted.

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

March T-bonds closed higher on Wednesday due to a late- session short
covering rebound. Today's high-range close leaves March poised to
test the upper boundary of this winter's trading range crossing at
102-05. Closes above this resistance level would open the door for a
larger-degree rebound into the later part of January with December's
high crossing at 105-06 being a potential target. Short-term momentum
indicators remain bullish signaling that sideways to higher prices
are possible near-term.

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

The CRB index closed modestly higher on Wednesday as it remains above
2001's downtrend line and the 25% retracement level of the 2000/01
decline crossing at 195. Confirmation of this week's trendline
breakout would open the door for a possible test of last September's
high, which coincides with the 38% retracement level of the 2000/01
decline crossing at 202.52 later this winter. Strength in soybeans,
cattle and precious metals underpinned today's rally. The daily ADX
(a trend-following indicator) signals that additional strength is
possible.

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

The energy markets closed lower on Wednesday in responds to Tuesday's
bearish API inventory reports. The latest API report showed that
crude oil stocks for last week rose by 115,000 barrels. Gasoline
stocks rose by 798,000 barrels and distillate stocks including
heating oil rose by 5.682 million barrels. The increases in inventory
indicate that demand remains weak in the face of weak U.S. and world
economic conditions.

February crude oil closed sharply lower on Wednesday and below
December's uptrend line crossing near 20.40 thereby confirming that
Monday's high marked a short-term top. Closes below last week's low
crossing at 19.66 would open the door for a larger-degree decline
into the later part of January. Stochastics and the RSI have turned
bearish from overbought levels signaling that sideways to lower
prices are likely over the next few weeks.

February heating oil plunged to new lows for the year on Wednesday
and closes below last week's low of 55.20 thereby opening the door
for a possible test of December's low crossing at 50.70 later this
month. Stochastics and the RSI are bearish signaling additional
weakness is possible near- term. I would not be surprised to see a
steady to higher close on Thursday due to light short covering on
ideas that today's sell off might have been overdone.

February unleaded gas closed sharply lower on Wednesday and below
December's uptrend line crossing near 60.10 thereby confirming that a
top and trend change has been posted. While a short covering bounce
is possible on Thursday and could lead to a test of December's broken
uptrend line, stochastics and the RSI have turned bearish signaling
that additional weakness appears likely. Closes below last week's low
at 57.20 would open the door for a larger-degree decline into the
later part of January.

February Henry Hub natural gas closed lower on Wednesday ahead of
today's AGA inventory report. The mid-range close leaves the door
open for sideways trading on Thursday barring a surprise in this
week's AGA report. Closes below weekly support crossing at 2.17 would
open the door for a possible test of psychological support crossing
at 2.00 later this month. The daily ADX is in a bearish mode
signaling that additional weakness near-term is possible.

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

The March Dollar closed modestly higher on Wednesday as it extends
its rebound off last week's low. Stochastics and the RSI are turning
neutral to bullish signaling that additional gains near-term are
possible. I would not be surprised to see a modest setback on
Thursday after March filled the late-December gap at 117.78. The
mid-range close hints that we could see some profit taking on
Thursday. Longer-term March needs to close above 118.85 or below
116.00 are needed to clear up near-term direction in the market.

The March Swiss Franc closed lower on Wednesday and in doing so
turned a number of short-term momentum indicators neutral to bearish
thereby tempering the friendly outlook in the market. Close of .6020
could lead to a test of key support crossing at .5973 later this
month.

The March Canadian Dollar posted an inside day with a lower close
thereby leaving Tuesday's key reversal up unconfirmed. Closes above
last week's high crossing at .6290 are needed to confirm that a
double bottom was posted in late-December. Momentum indicators are
oversold but have not confirmed that a bottom is in place.

The March Japanese Yen closed unchanged after spiking to a new
contract low earlier in the session. Closes below monthly support
crossing at .7558 would extend March's decline off September's high
and set the stage for a test of long-term support crossing at .7210
later this winter. The daily ADX has turned sideways leaving the door
open for additional weakness near-term.

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

February gold closed sharply higher on Wednesday as it broke out to
the topside of December's symmetrical triangle. Today's rally and
close above November's reaction high crossing at 283.30 has left
February poised to test the 50% retracement level of last fall's
decline crossing at 284.60 possibly on Thursday. Stochastics and the
RSI returned to a bullish mode with today's breakout signaling that
sideways to higher prices are possible near-term.

March silver closed into new highs for the year on Wednesday falling
just short of October's high crossing at 4.74 before profit taking
tempered some of today's gains. If October's high at 4.74 is cleared,
last September's high at 4.795 is a potential target later this
winter. The ADX (a trend- following indicator) remains bullish
signaling that additional strength is still possible.

March copper closed higher on Wednesday as it renewed this week's
rally. Producer and trade selling near Tuesday's highs limited
today's gains despite fund related buying. This week's turnaround in
fund related buying was triggered by ideas that the economy will see
significant improvement during the coming year. The door is open for
an eventual test of November's high crossing at 73.70. Stochastics
and the RSI are bullish signaling that additional gains are possible.

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

March corn closed lower on Wednesday as it posted a potential key
reversal down ahead of Thursday's export sales report. Session lows
fell within a penny of the contract low before a short covering
bounce ahead of the close tempered some of today's loss. Additional
pressure came from news that Mexico's soft drink industry has an
informal agreement not to use high-fructose corn syrup as a sweetener
in their products to avoid a new 20% tax. If this becomes reality, it
would make a significant dent in U.S. corn exports to Mexico thereby
resulting in increased carryout levels for 2002. I would not be
surprised to see an inside day on Thursday barring a major bearish
surprise in tomorrow's weekly export sales report. Closes above
December's downtrend line crossing near 2.14 3/4 are needed to
confirm that a bottom has been posted.

March wheat posted a downside reversal on Wednesday and closed below
broken weekly resistance crossing at 3.04. Additional weakness on
Thursday would confirm today's bearish reversal pattern thereby
increasing the odds that a short-term top has likely been posted.
Momentum indicators are overbought and turning neutral to bearish
warning traders that a short-term top might be in or near.

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

March soybeans broke out above this fall's downtrend line crossing at
4.37 on Wednesday as weather forecasts for Southern Brazil remain hot
and dry. Today's breakout confirmed that a seasonal bottom was posted
last Wednesday. I am looking for sideways to higher prices into the
later part of January barring a major bearish surprise in Friday's
USDA reports. Thursday's export sales report is expected to be solid
showing that world demand for U.S. soybeans remains strong. Momentum
indicators are bullish signaling that additional gains are possible
near-term.

March soybean meal closed sharply higher on Wednesday thereby
confirming yesterday's breakout and above this fall's downtrend line.
Wednesday's high fell just short of testing initial fib resistance
crossing at 150. I would not be surprised to see this resistance
level tested on Thursday but I am looking for a steady to lower close
ahead of Friday's USDA report. Momentum indicators have turned
bullish signaling that additional strength is possible for the
balance of January.

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

February hogs closed lower on Wednesday thereby confirming
yesterday's key reversal down. The door is open for additional
weakness with December's gap crossing at 53.22 being the next likely
downside target later this month. Pressure from the Goldman roll and
sharply lower belly prices weighed on February futures. Additional
pressure came from lower cash bids. Momentum indicators are bearish
signaling that sideways to lower prices are possible into the later
part of January.

February cattle posted a key reversal up on Wednesday falling just
short of testing key resistance crossing at 71.35. Light profit
taking ahead of the close tempered some of today's gains leaving the
door open for sideways trading on Thursday. Today's rally was
triggered by higher boxed beef prices and along with expectations for
tighter spring cattle supplies. Stochastics and the RSI have turned
neutral with today's strength while the ADX is moving into position
to confirm the resumption of last fall's rally.

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

March coffee gapped up and closed above trading range resistance
crossing at 50 cents on Wednesday. Fund buying was the driving factor
behind today's rally as the door is open for additional short
covering gains later this month. Wednesday's high-range close leaves
the door open for follow-through buying on Thursday as the door has
been opened for a likely test of November's high crossing at 53.00
cents later this winter.

March cocoa posted an upside reversal on Wednesday after session lows
fell just short of testing broken resistance crossing at 1365.
Additional strength on Thursday along with closes above this week's
high at 1415 are needed to confirm the recent breakout above this
fall's trading range. If the rally resumes, weekly resistance
crossing at 1422, then monthly resistance crossing at 1508 are
potential targets later this winter.

March sugar gapped up and closed sharply higher on Wednesday as it
tested last August's reaction high crossing at 804. March sugar has
rallied into Thursday's time turn as momentum indicators have become
overbought hinting that a short-term top might be near. If Thursday's
time turn proves to be an acceleration in the uptrend, fib resistance
crossing at 830 is March's next target.

March cotton posted an inside day with a lower close due to light
profit taking ahead of Thursday's weekly export sales report on
Wednesday. Traders remembered last week's disappoint sales report and
appears to be a little gun shy going into Thursday's report.
Stochastics and the RSI are bullish signaling that sideways to higher
prices are possible. If Thursday's export sales report proves to be
neutral to friendly, March could try and test November's high at
39.80 ahead of Friday's USDA report.

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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

KCH2   Coffee 'C' Mar 2002                         50.85      2.35  +4.84
AGM2   Silver 1,000 oz. Jun 2002                   4.610     0.169  +3.83
GCZ3   Gold Dec 2003                               292.5      10.7  +3.79
SMF2   Soybean Meal Jan 2002                       153.3       3.9  +2.61
SBH2   Sugar #11 World Mar 2002                     8.03      0.20  +2.56
XEH2   Soybean Meal Mar 2002                       148.9       3.5  +2.41
OJN2   Orange Juice Froz. Conc. #1 Jul 2002        92.85      2.10  +2.29
SIH3   Silver Mar 2003                             4.702     0.099  +2.13
HGU2   Copper Sep 2002                            0.7315    0.0135  +1.86
LBN2   Random Length Lumber Jul 2002              274.50      4.50  +1.67

LOSERS

HOJ2   Heating Oil Apr 2002                       0.5469   -0.0296  -5.16
CLG2   Light Sweet Crude Oil Feb 2002              20.18     -1.02  -4.80
HUG2   New York Harbor Unleaded Gasoline Feb 20    0.5806   -0.0289  -4.74
PNH2   Propane Mar 2002                           0.2875   -0.0125  -4.17
OH2    Oats Mar 2002                             195 3/4        -8  -3.93
PBG2   Frozen Pork Bellies Feb 2002               74.800    -3.000  -3.86
QLX2   Central Appalachian Coal Nov 2002           27.25     -1.00  -3.54
NGQ2   Henry Hub Natural Gas Aug 2002              2.517    -0.080  -3.13
GIF2   Goldman Sachs Commodity Index Jan 2002     169.75     -4.70  -2.69
OJF2   Orange Juice Froz. Conc. #1 Jan 2002        91.25     -2.25  -2.41

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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

SNIC   SONIC SOLUTIONS                            7.9550    2.2700  +40.61
MRAE   MIRAE CORP ADS                             5.2000    1.5000  +37.04
TASRW  TASER INTERNATIONAL WTS 5/06               8.9200    2.2500  +33.28
IOMT   ISOMET CORP                                6.7000    1.3200  +25.14
TASR   TASER INTERNATIONAL                       17.7500    3.1500  +21.58
SMMX   SYMYX TECHNOLOGIES                        26.7500    4.2500  +19.02
TMN    TRANSMEDIA NETWORK INC                       5.15      0.79  +17.56
SGMO   SANGAMO BIOSCIENCES                       10.2000    1.4600  +16.11
EPNY   E.PIPHANY INC                              9.9100    1.3400  +15.95
UAXS   UNIVERSAL ACCESS GLOBAL HLDGS              5.3500    0.7100  +15.33

LOSERS

BREL   BIORELIANCE CORP                          22.0800  -10.4700  -31.95
CVST   COVISTA COMM INC                           6.3590   -2.2100  -27.97
BCGI   BOSTON COMMUNICATIONS GRP                  7.6300   -2.0800  -21.44
JCBSG  JACOBSON STORES INC 6.75% DEB              9.0000   -3.0000  -18.75
AV     AVAYA INC                                   10.35     -2.12  -17.00
IMCO   IMPCO TECHNOLOGIES                        12.4100   -2.4307  -16.29
INFA   INFORMATICA CORP                          11.3700   -1.8800  -14.20
BYBI   BACK YARD BURGERS                          6.3700   -1.0200  -13.92
DTHK   DIGITALTHINK INC                           9.3000   -1.5000  -13.72
IMCL   IMCLONE SYSTEMS                           31.8500   -4.9400  -13.41
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