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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December 13: The CRB Index trended lower by 2.59 points to 227.32. The
US Dollar Index rose 0.44 points to 114.71.

The Dow Industrials rose 26.17 points, at 10794.44, while
the S&P 500 dropped 11.08 points, last seen at 1360.10. The
Nasdaq Composite edged lower 108.97 points to 2822.80.

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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 closed lower on Wednesday as
chip and hardware stocks fell due to concerns over corporate profits.
Salomon Smith Barney lowered its rating on the chip equipment group,
citing a capital-spending freeze of up to six months at Intel. The
Dow closed higher on Wednesday due in part to strength in Philip
Morris, J.P. Morgan and Johnson & Johnson. Early strength tested last
week's high crossing at 10,917.30, which marks short-term resistance.
Multiple closes above this resistance level would open the door for a
possible year end rally that could lead to an eventual test of last
spring's high crossing at 11,425.40 later this winter.

INTEREST RATES March bonds gapped up and surged to a new contract
high thereby renewing this fall's rally. Weakness in the Nasdaq and
S&P's underpinned today's rally in bonds in part due to a safe-haven
move by some investors. Today's high-range close sets the stage for
sharply higher prices on Thursday should November's Producer Price
Index come in weaker than expected. If the rally in March bonds
continues, weekly resistance crossing at 106-10 is the next upside
objective later this winter.

CRB INDEX extended Tuesday's loss and confirmed a downside breakout
below the lower boundary of this month's symmetrical triangle and
filled November's gap at 227.58. Today's decline confirms the rally
off the late-October low has come to an end while marking a broad
double top on the daily chart. If the decline continues, fib support
crossing at 225.87 is the next downside target. Much of today's
pressure was due to weakness in precious metals, foods, fiber, and
energies.

ENERGIES The energy markets closed sharply lower on Wednesday due to
liquidation of Brent crude oil ahead of Thursday's January contract
expiration. The sell off was some what of a surprise following recent
industry data, which showed crude and heating oil stocks fell last
week and indications that Iraq has not fully resumed crude oil sales.
February crude oil posted a key reversal down today thereby ending
this week's short covering rebound. Additional weakness on Thursday
is needed to confirm today's reversal pattern. If this fall's decline
resumes, fib support crossing at 27.37 is the next target. February
heating oil also closed sharply lower on Wednesday and is challenging
key support crossing at 88.10. Multiple closes below this support
level could lead to a test of the 38% retracement level of the
1999/2000- advance crossing at 84.11 later this winter.

CURRENCIES the March Dollar closed higher on Wednesday as it renewed
its short covering rebound off last week's low. Today's rally was
underpinned by Tuesday's U.S. Supreme Court decision to halt the
manual recount thereby giving the election to George W. Bush.
Momentum indicators have turned bullish signaling sideways to higher
prices into the end of the year are possible. Today's mid-range close
leaves the door open for sideways trading on Thursday. The March
Swiss Franc and D-mark closed lower on Wednesday as they extend their
declines off last week's highs. Momentum indicators have turned
bearish warning additional weakness into the end of the year is
possible. The March Japanese Yen plunged to a new contract low in
overnight trading and held onto those losses during the day session.
Concerns over the Japanese economy and the U.S. Supreme Court ruling
triggered the sell off. The door is open for a test of last
February's low crossing at .8978 then fib support crossing at .8774
later this winter.

PRECIOUS METALS were closed lower on Wednesday. February gold resumed
its decline off last week's high and closed below November's uptrend
line crossing near 271.80 thereby confirming a short-term top has
been posted. Momentum indicators are bearish signaling sideways to
lower prices into the end of the year are possible. Support begins at
266.80. March silver also closed lower on Wednesday ending this
week's short covering bounce. Today's new low close for the week and
test of support crossing at 4.69 sets the stage for additional
weakness into the end of the year. If the decline continues, weekly
support crossing at 4.56 cents is March's next target. March copper
extended Tuesday's loss in relatively narrow trading but pulled up
short of testing November's uptrend line crossing near 87.75. A short
covering bounce ahead of the close tempered some of today's losses
leaving the door open for additional short covering on Thursday.
Nevertheless, momentum indicators are overbought and turning bearish
signaling additional weakness near-term is possible. Closes below
November's uptrend line would confirm a top and trend change has
taken place.

GRAINS closed mixed on Wednesday. March corn posted a key reversal up
Wednesday due to expectations that tomorrow's export sales report
will show a significant improvement from recent weeks. Confirmation
of improving export sales on Thursday could lead to further short
covering thereby turning a number of momentum indicators neutral to
bullish. Such a turnaround in the near-term price outlook could lead
to year-end rebound however, it will take closes above 2.22 1/4
before a low is confirmed. March wheat closed lower on Wednesday as
traders are struggling to find direction following Tuesday's key
reversal down in the face of a friendly supply and demand report.
Traders remain concerned over lagging export sales and expect to see
another week of slow export sales in Thursday's report. March is
challenging trading range support crossing at 2.69. If this support
level is broken, the fall low at 2.63 1/2 then long-term support at
2.50 are possible targets. Momentum indicators are bearish signaling
additional weakness is possible.

SOYBEAN COMPLEX closed mixed on Wednesday. March beans managed to
squeak out a fractional gain on Wednesday as it continues to
consolidate below the 75% retracement level of this fall's decline,
which crosses at 5.20. While Tuesday's supply and demand report was
friendly, the increase in export sales and drop in carryout was
already factored into prices. March beans are at a crossroads as a
lack of fresh news is limiting gains while solid demand continues to
underpin the market. Closes above 5.20 or below trendline support
crossing near 5.12 are needed to clear up near-term direction in the
market. March soybean meal closed slightly lower on Wednesday due to
light profit taking as it consolidated some of its recent gains.
March continues to extend the late-fall trading range despite
Tuesday's friendly supply and demand report. Closes above 189.50 or
below 182.30 are needed to clear up near-term direction in the
market. March bean oil posted an inside day with a slightly higher
close due to light short covering as it consolidated some of this
week's losses. However, today's low-range close leaves the door open
for a resumption of the decline off this month's high. Momentum
indicators are bearish signaling a test of November's low crossing at
15.05 is possible later this winter.

LIVESTOCK closed steady on Wednesday. February hogs posted a quiet
inside day with a steady close as it consolidated some of Tuesday's
loss. However, momentum indicators are diverging and turning bearish
warning traders that a broad double top may have been posted with
Monday's spike high. A resumption of this week's decline on Thursday
would set the stage for a test of trendline support crossing near
57.50. If the late fall rally resumes, weekly resistance crossing at
63.30 is the next upside target. February cattle also closed steady
after early strength tied to winter storm concerns and expectations
for higher cash bids gave way to light profit taking ahead of the
close. Today's high fell short of testing weekly resistance crossing
at 77.92. Momentum indicators have become very overbought warning
traders that much of the bullish news from higher cash and product
prices underpinned by surprisingly strong demand may have already
been discounted in prices. Closes below Tuesday's low at 76.50 would
be a clear warning to bulls that a short-term top may be in or near.

FOOD & FIBER markets were mixed on Thursday. March coffee posted
another quiet inside day with its lowest close ever while May fell
within 20 cents of the contract low. Forecast for rain across
Brazil's coffee growing region this weekend combined with last week's
bearish world crop estimate continues to weigh on prices. March cocoa
gave us the short covering bounce we were looking for following
Tuesday's high-range close. Additional short covering is possible
however, upside potential appears limited in the face of continued
origin selling that may last into the end of the year. March sugar
finally resumed its decline off November's high after drifting
sideways for the past week and a half. Renewed fund and speculator
selling due to a lack of cash trade activity triggered today's plunge
to new lows. Momentum indicators are bearish signaling sideways to
lower prices are possible. If the decline continues 930, then 867 are
the next targets. March cotton extended Tuesday's trendline breakout
thereby confirming this week's gap marked a downside breakaway gap.
Today's loss sets the stage for a likely test of October's low
crossing at 63.75 cents later this winter. Bearish fallout from
Tuesday's negative supply and demand report continues to weigh on
prices. I would not be surprised to see a short covering bounce on
Thursday especially if export sales come in above pre-report
expectations.

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T O P   N E W S
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STOCKS

Japan Stocks Review: Up 0.4% as US ruling boosts Nasdaq futures
http://news.ino.com/summary/?id=24067
US Equities Review: Nasdaq down 3% on profit woes; DJIA climbs
http://news.ino.com/summary/?id=24076
UK Stocks Review: FTSE 100 closes flat in low volumes
http://news.ino.com/summary/?id=24075

FOREX

US FX Review: Dollar up on Bush's Supreme Court victory
http://news.ino.com/summary/?id=24069
Asia FX Review: Dlr/yen hits new year high on BOJ tankan, US politics
http://news.ino.com/summary/?id=24066
Europe FX Review: Dlr off early highs, but Gore aids at close
http://news.ino.com/summary/?id=24068

CREDIT

US Credit Review: Treasuries jump on weak retail sales report
http://news.ino.com/summary/?id=24064
Europe Credit Review: Bonds unfazed by Gore concession reports
http://news.ino.com/summary/?id=24071
Japan Credit Review: Mar plunges to offset gains on weak BOJ tankan
http://news.ino.com/summary/?id=24074

COMMODITIES

US Futures Summary: Energy plummets; sugar, juice sag
http://news.ino.com/summary/?id=24073
Japan Commodity Summary: Japan's Tokyo, Yokohama agricultural commodities 
futures prices
http://news.ino.com/summary/?id=24070
CRB Outlook: Starting slightly firmer on cocoa and platinum
http://news.ino.com/summary/?id=24072

EXCHANGES

PCX Board Approves Demutualization, Screen-Based Trading
http://news.ino.com/press/index.cgi?release=23022
Pacific Exchange to Trade Eleven New Options
http://news.ino.com/press/index.cgi?release=23021
10 Major Clearing Organizations Call For Global Central Clearing
http://news.ino.com/press/index.cgi?release=23020
OM Stockholm Announces New Fee Structure
http://news.ino.com/press/index.cgi?release=23019
EEX Derivatives Market Starts In First Quarter 2001
http://news.ino.com/press/index.cgi?release=23018

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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

DBU1   Butter Sep 2001                           125.525     3.525  +2.92
XNH1   Treasury Notes 10yr Mar 2001            104 07/32     82/32  +2.48
PNJ1   Propane Apr 2001                           0.5410    0.0100  +1.83
XHZ0   Lean Hogs Dec 2000                          58.82      0.95  +1.65
LHZ0   Lean Hogs Dec 2000                         58.875     0.950  +1.65
AGZ1   Silver 1,000 oz. Dec 2001                   4.990     0.080  +1.59
LBH1   Random Length Lumber Mar 2001              233.10      3.10  +1.34
BEH1   Brazilian EI Bonds Mar 2001                 91.80      1.10  +1.20
BRZ1   Brazilian Real Dec 2001                   0.47650   0.00500  +1.06
SYH1   British Pound/Japanese Yen Mar 2001        161.21      1.64  +1.03

LOSERS

NGF1   Henry Hub Natural Gas Jan 2001              7.537    -0.608  -6.46
HOF1   Heating Oil Jan 2001                       0.9097   -0.0515  -5.24
PAM1   Palladium Jun 2001                         888.45    -37.70  -4.12
NDZ0   NASDAQ 100 Index Dec 2000                 2745.00   -121.50  -4.08
CLZ6   Light Sweet Crude Oil Dec 2006              21.08     -0.87  -3.92
GIZ0   Goldman Sachs Commodity Index Dec 2000     240.05     -9.70  -3.77
TKH1   PSE Tech 100 Mar 2001                      896.00    -34.00  -3.66
PBQ1   Frozen Pork Bellies Aug 2001               67.875    -1.925  -2.70
OJF1   Orange Juice Froz. Conc. #1 Jan 2001        81.10     -2.05  -2.46
SBH1   Sugar #11 World Mar 2001                     9.41     -0.23  -2.38
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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

SPLN   SPORTSLINE.COM INC                          6 5/8   1 18/32  +30.86
MTON   METRO ONE TELECOMMUN                           23   4 14/32  +24.07
SMDK   SMARTDISK CORP                            5 14/32    1 2/32  +23.94
SBSA   SPANISH BROADCASTING SYS'A'                     7   1 10/32  +22.83
CMTL   COMTECH TELECOMMNS                             14     2 3/8  +20.88
MAXY   MAXYGEN INC(IPO)                               27   4 27/32  +20.18
NTOP   NET2PHONE INC                            11 22/32     1 7/8  +19.23
PGTV   PEGASUS COMMUNICATIONS'A'                      22     3 3/8  +18.12
CSCC   THRUSTMASTER INC                           12 3/8     1 7/8  +17.86
OVTI   OMNIVISION TECHNOLOGIES                  10 30/32   1 18/32  +17.36

LOSERS

HDIIU  HYPERTENS'N DIAGNOSTIC UNIT                     7    -2 3/4  -27.50
RSYS   RADISYS CORP                               21 1/2  -6 22/32  -23.73
ONNN   ON SEMICONDUCTOR CORP                     6 19/32   -2 2/32  -23.57
PHHM   PALM HARBOR HOMES                              13  -3 23/32  -23.38
AVSR   AVISTAR COMMUNICATIONS                      5 5/8    -1 3/4  -23.33
AVCT   AVOCENT CORP                               32 5/8       -10  -23.32
PBKBP  PEOPLE'S BANCSHRS CAP TR 9.76%                  7   -2 3/32  -23.18
HRLY   HERLEY INDUSTRIES                              17        -5  -22.79
CKCM   CLICK COMMERCE                                 19  -5 14/32  -22.77
RC     GRUPO RADIO CENTRO ADS                      6 3/8  -1 26/32  -22.66

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