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 has gained 1.07 points to 194.89. The
US Dollar Index climbed 0.20 points to 116.53.

The Dow Industrials slipped 62.69 points, at 10197.05, while
the S&P 500 declined 7.62 points, last seen at 1164.89. The
Nasdaq Composite edged lower 22.27 points to 2037.11.
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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 Monday due to light profit taking as
they consolidated some of this year's gains. The NASDAQ is at a
crossroads with the recent spike above December's high. The NASDAQ
needs to sustain its rally above this resistance level or risk
forming a possible double top. Short-term momentum indicators are
bullish hinting that additional gains are possible. However, it's a
long way from the next fib resistance level crossing at 2207.91. The
March S&P 500 index posted an inside day with a lower close after
challenging December's high at 1176. Closes above this resistance
level are needed to renew its rebound off September's low. Closes
below last week's low at 1136.50 would increase the odds that a
double top has likely been posted.

The Dow closed lower on Monday due to light profit taking ahead of
Tuesday's scheduled Dept. of Commerce Nov. factory orders report. The
fact that last Friday's lows held, was encouraging to investors, as
the recent move above December's high has renewed its rebound off
September's low. Momentum indicators are bullish signaling that
sideways to higher prices are possible near-term. If the rally
continues, fib resistance crossing at 10,574.10 is a potential target
later this winter.

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

March T-bonds closed higher on Monday thereby negating last Friday's
key reversal down. Today's rally in March bonds was triggered by
Argentina's devaluation of the peso. The devaluation triggered a safe
haven move on the part of some market players. Additional support
came from economic forecasts, which are calling for factory orders to
fall during November, based upon the decline in durable goods orders
that has already been reported for the same month. November factory
orders are due to be reported at 9:00 CST on Tuesday. The consensus
estimate of economists surveyed by ODJ is for a fall of 2.6%,
following a steep increase of 7.1% in October. Short-term momentum
indicators remain bullish signaling that March bonds may need to
correct more in time than price before the next trend change takes
place. Closes above 102-05 or below 98-01 are needed to clear up
near-term direction in the market.

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

The CRB index closed higher on Monday and more importantly above
2001's downtrend line, which crosses near 194.35. Multiple closes
above this resistance level are needed to confirm today's trendline
breakout, which would then open the door for a larger-degree rebound
this winter. The downtrend line also coincides with the 25%
retracement level of the 2000/2001 decline crossing at 195. Strength
in grains, cattle, some precious metals and fiber underpinned today's
rally. The daily ADX (a trend-following indicator) is bullish
signaling that additional strength is possible in the coming weeks.

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

The energy markets closed lower on Monday due to technically related
selling in thin trading volume, which magnified some of today's
losses. The market is closely watching OPEC and non-OPEC nations to
see if they will comply with their pledged cuts in production, which
were suppose to have gone in effect January 1st.

February crude oil closed slightly lower on Monday after spiking
above the 38% retracement level of the September/November decline
crossing at 21.77. However, the setback was rather shallow indicating
that February remains in position to challenge November's high
crossing at 22.83 later this month. Short-term momentum indicators
remain bullish signaling that sideways to higher prices are still
possible near-term.

February heating oil posted a downside reversal on Monday thereby
leaving the door open for follow-through selling on Tuesday. Closes
below last week's low of 55.20 would confirm the recent breakout
below December's uptrend line while opening the door for sideways to
lower prices into mid- January. Today's sell off turned stochastics
and the RSI bearish signaling sideways to lower prices are possible
near-term.

February unleaded gas posted an inside day with a modestly lower
close on Monday as it consolidates above the 38% retracement level of
the September/November decline crossing at 61.18 and November's high
crossing at 62.31. Today's mid- range close leaves the door open for
additional short covering gains into the later part of January. The
daily ADX (a trend-following indicator) is bullish signaling that
additional strength is possible.

February Henry Hub natural gas closed slightly lower on Monday but
near mid-range after falling just short of testing weekly support
crossing at 2.17. Today's mid-range close leaves the door open for
sideways trading on Tuesday as February may consolidate above this
key support level. Closes above minor trendline resistance crossing
near 2.35 along with an upturn by stochastics and the RSI are needed
to confirm that a short-term bottom has been posted.

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

The March Dollar posted a key reversal up on Monday as it continues
to extend its short covering bounce off last Wednesday's low. A sell
off ahead of the close tempered some of today's gains leaving the
Dollar to close near mid-range. This leaves the door open for
sideways trading on Tuesday. A higher opening followed by a lower
close on Tuesday would increase the odds that a short-term top has
likely been posted. If the decline resumes, the September/December
uptrend line crossing near 115.67 is March's next target.

The March Swiss Franc closed slightly higher on Monday and near
mid-range hinting that the setback off last Wednesday's high might
have come to an end. Today's mid-range close leaves the door open for
sideways trading on Tuesday. However, the door remains open for a
possible test of December's high crossing at .6154 later this month.
Momentum indicators remain bullish signaling that additional strength
is still possible during the first half of January.

The March Canadian Dollar posted a downside reversal on Monday
thereby leaving the door open for additional weakness on Tuesday.
Until March closes above last week's high crossing at .6290, the
market remains vulnerable to retest this past fall's double bottom
crossing at .6230. Momentum indicators are oversold but have not
confirmed that a bottom is in place. Look for choppy trading to
continue near-term.

The March Japanese Yen closed lower on Monday but near mid- range as
the market consolidated some of last week's short covering bounce.
Today's mid-range close leaves the door open for sideways trading on
Tuesday. Closes above today's high crossing at .7696 would confirm an
upside breakout of the Nov./Dec. downtrend line thereby signaling
that a minor low has been posted. However, it will take closes above
November's downtrend line crossing near .7820 to confirm that a
bottom is in place. The daily ADX has turned down indicating that a
low has either been posted or is very near.

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

February gold posted a downside reversal on Monday after testing the
upper boundary of December's symmetrical triangle. February continues
to work its way towards the apex of this consolidation formation,
which would eventually lead to a breakout that should point the
direction of the next trending move. If the rally off December's low
resumes. November's high at 283.30 is a possible target later this
month. Stochastics and the RSI remain bullish but are nearing their
overbought zones warning bulls that time might be running out for
higher prices.

March silver had another wild trading day but managed to close into
new highs for the year as it extends last week's breakout above the
75% retracement level of this fall's decline crossing at 4.619. The
door is open for a test of October's high crossing at 4.74 later this
month. Momentum indicators are overbought however the ADX (a
trend-following indicator) is bullish signaling that additional
strength is possible.

March copper soared to its highest level since early- December due to
massive fund short covering following this morning's breakout above
the Nov./Dec. downtrend line. Today's breakout and trend change has
opened the door for a likely test of November's high later this
month. Weekly momentum indicators are bullish signaling that a
larger- degree advance appears likely this winter. Closes above
November's high could lead to a test of weekly resistance crossing at
76.88 later this year.

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

March corn closed higher due to short covering on Monday. However, a
sell off ahead of the close tempered some of today's gains, which led
to a low-range close. This low- range close leaves the door open for
a possible setback on Tuesday amidst a lack of fresh supportive news.
Export inspections were once again disappointing due in part to last
week's holiday. Corn inspections were just 14.3 million bushels. The
pace is going to have to see a significant pickup in the near future
for the market to come anywhere close to USDA's export target for
this year. I would not be surprised to see some additional short
covering this week as trader's position themselves ahead of the
January crop and supply/ demand reports due out Friday morning.

March wheat posted an inside day with a lower close on Monday as is
consolidated some of last Friday's gains and breakout above the upper
boundary of its weekly trading range crossing at 3.04. Tightening
U.S. stocks along with a severe contraction in world ending stocks
over the past few years leaves the wheat market in a bullish setup.
Sources indicate that this year's planted acreage will not see a
significant increase from last year, which leaves the market in
position to build a weather premium on any perceived supply
disruptions. Multiple closes above weekly resistance crossing at 3.04
and the 75% retracement level of last year's decline, which crosses
at 3.10 3/4 would confirm a breakout while opening the door for a
larger-degree rebound during January. At the same time, momentum
indicators are bullish but becoming overbought warning bullish
traders that a bearish report on Friday could put in a short-term top
as March has rallied over 30 cents since early-December thereby
factoring in any likely friendly news out of Friday's report into
prices already.

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

March soybeans gapped up and closed higher on Monday as disappointing
weekend showers and forecasts calling for hot/dry weather across
South American triggered today's short covering rally. Early strength
tested this fall's downtrend line crossing near 4.37 before a sell
off ahead of the close tempered some of today's gains. The low-range
close leaves the door open for a possible test of today's gap area on
Tuesday. Closes above the aforementioned downtrend line crossing at
4.37 would confirm a bottom and trend change has taken place. With
funds holding huge short positions in the market, any perception of
trouble with South America's soybean crop could trigger additional
short covering, which could push prices well above November's high
crossing at4.57 1/2 later this winter.

March soybean meal closed higher on Monday but near session lows due
to a late-session sell off after early strength, which led to a spike
above this fall's downtrend line failed to attract follow-through
buying. March meal is at a crossroads as it has become oversold with
last week's test of key support crossing at 142. Closes below this
support level or above the fall downtrend line crossing near 145 are
needed to clear up near-term direction in the market. Momentum
indicators are oversold and diverging warning bears that a low might
be in or is near.

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

February hogs closed unchanged due to a late-session short covering
bounce. Early weakness tested December's uptrend line crossing near
55.00. The late-day rebound leaves the door open for a short covering
bounce on Tuesday. February hogs need to close below December's
uptrend line to confirm a top and trend change has taken place.
Momentum indicators have turned bearish from overbought conditions
thereby increasing the odds that sideways to lower prices are
possible into the later part of January.

February cattle posted an inside day with a higher close as it
consolidated below December's broken uptrend line. Today's high-range
close leaves the door open for a steady to firmer opening on Tuesday,
however, the door has been opened for lower prices with last week's
trendline breakout. Stochastics and the RSI are overbought and
turning neutral to bearish signaling it should be only a matter of
time before we see lower prices. It will take closes above November's
high crossing at 71.35 to negate the near-term bearish outlook in the
market.

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

March coffee posed a downside reversal on Monday as producer hedge
pressure ahead of the close weighed on prices. The low-range close
leaves the door open for follow-through selling on Tuesday. Closes
above 50.00 or below 44.75 are needed to clear up near-term direction
in the market.

March cocoa closed higher on Monday confirming last Friday's break
out above November's high at 1365. Session highs fell short of
testing weekly resistance crossing at 1422, which is March's next
objective for Tuesday. Short-term and weekly momentum indicators are
bullish signaling that additional gains are possible into
mid-January.

March sugar posted a key reversal up on Monday thereby ending the
two-day setback off last week's high. If the rally resumes,
December's high crossing at 785, then fib resistance crossing at 804
are March's next target. Momentum indicators remain bullish signaling
that sideways to higher prices are possible into Thursday's time
turn.

March cotton posted an inside day with a higher close thereby
confirming last Friday's key reversal up. A late round of fund short
covering pushed the market higher on the day as it extended last
week's breakout above the Nov./Dec. downtrend line. Additional
support came from light commercial buying although most of there
buying was concentrated in the July contract. Stochastics and the RSI
are bullish signaling that sideways to higher prices are possible
near-term. If the rally off last week's low continues, November's
high crossing at 39.80 is March's next likely target.

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I N O   N E W S
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Record NYMEX Options Trading For Fifth Consecutive Year
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Singapore Exploring Integration Of Operating Systems
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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

HGG2   Copper Feb 2002                            0.7125    0.0405  +6.03
AFH2   Aluminum Mar 2002                          0.6790    0.0350  +5.43
XRF2   Soybean Oil Jan 2002                        16.24      0.43  +2.72
XSU2   Soybeans Sep 2002                             439        11  +2.55
CTH2   Cotton Mar 2002                             37.56      0.93  +2.54
BOQ2   Soybean Oil Aug 2002                        16.87      0.38  +2.30
SIZ4   Silver Dec 2004                             4.762     0.104  +2.19
KCK3   Coffee 'C' May 2003                         59.80      1.25  +2.09
SQ2    Soybeans Aug 2002                             440         8  +1.85
CCH2   Cocoa Mar 2002                               1411        25  +1.80

LOSERS

AGG2   Silver 1,000 oz. Feb 2002                   4.385    -0.258  -5.56
PNH2   Propane Mar 2002                           0.3000   -0.0120  -3.90
LBX2   Random Length Lumber Nov 2002              268.00     -9.70  -3.49
PBK2   Frozen Pork Bellies May 2002               79.300    -2.450  -3.03
QLX2   Central Appalachian Coal Nov 2002           28.25     -0.65  -2.25
OU2    Oats Sep 2002                                 141        -3  -2.10
HOH2   Heating Oil Mar 2002                       0.5769   -0.0110  -1.87
CLQ2   Light Sweet Crude Oil Aug 2002              21.74     -0.39  -1.78
RLH2   Russell 2000 Index Mar 2002                493.55     -7.45  -1.49
NKM2   Nikkei 225 Stock Avg Jun 2002               10825      -150  -1.37

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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

TALR   TALARIAN CORP                              5.1500    2.0200  +64.33
ACX    ARGUSS COMMUNICATIONS INC                    5.73      1.31  +29.64
CRDS   CROSSROADS SYSTEMS                         6.2900    1.2500  +25.20
SLHN   STEARNS & LEHMAN INC                       7.2800    1.1600  +19.02
SONS   SONUS NETWORKS                             5.3800    0.8200  +17.98
BYBI   BACK YARD BURGERS                          5.8000    0.8500  +17.17
ALU    ALLOU HEALTH&BEAUTY'A'                       6.55      0.89  +15.86
KANAD  KANA SOFTWARE INC NEW                     24.6000    3.3600  +15.81
LNOP   LANOPTICS LTD                              8.2600    1.0800  +15.38
ALGN   ALIGN TECHNOLOGY                           5.0199    0.6200  +13.78

LOSERS

ASW    A.C.L.N. LTD                                 7.23     -3.07  -29.81
CNC-V  CONSECO FIN TR V 8.70%'TOPRS'                6.25     -1.80  -22.19
CNC-G  CONSECO FIN TR VI 9.00%'TOPRS'               6.75     -1.75  -20.59
CNC-T  CONSECO FIN TR I 9.16%'TOPRS'                6.90     -1.75  -19.89
CNC-H  CONSECO FIN VII PFD H TOPRS                  7.40     -1.80  -19.78
DGIN   DIGITAL INSIGHT                           18.5000   -4.0400  -18.33
IMCL   IMCLONE SYSTEMS                           35.8300   -7.6800  -17.66
APS    ALAMOSA HOLDINGS INC                         9.22     -1.78  -16.21
FOB    BOYDS COLLECTION                             6.05     -1.13  -15.74
PCSA   AIRGATE PCS INC                           36.3600   -6.1600  -14.41
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