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 has gained 1.90 points to 193.49. The 
US Dollar Index moved lower 0.24 points to 117.85.

The Dow Industrials moved up 52.73 points, at 10088.07, while 
the S&P 500 moved up 4.72 points, last seen at 1149.37. The 
Nasdaq Composite edged higher by 16.22 points to 1960.70.
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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 were higher on Wednesday due to strength in technology
stocks. However, light profit taking ahead of the close tempered some
of today's gains leaving the door open for sideways trading on
Thursday. The NASDAQ remains above the 25% retracement level of this
fall's rally crossing at 1905.53. Momentum indicators remain bearish
signaling that sideways to lower prices are possible into
early-January. The March S&P 500 index also closed higher on
Wednesday but ended the day near mid-range, which leaves the door
open for sideways trading on Thursday. March continues to rebound off
the 25% retracement level of this fall's rally crossing at 1120.66.
However, closes above December's high crossing at 1176 are needed to
renew this fall's rally. Until then, March may decide to correct more
in time than price, which would be long-term bullish.

The Dow closed higher on Wednesday as better-than-expected holiday
retail sales from Wal-Mart and Yahoo! Underpinned today's rally. Tech
stocks found light support as investors bought on the hope that this
sector and the economy would benefit from consumer's willingness to
buy. Wal-Mart stock rose $1.11 per share to $58.24. Yahoo! Also rose
by $1.13 to $17.80 after the online company reported holiday sales
rose by 86% from the previous year. The Dow fell just short of
testing its early December high of 10,169.40. Closes above this
resistance level are needed to renew this fall's rally. The Dow
closed just below the 62% retracement level of the May/September
decline crossing at 10,094.10 at 10,088. 

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

March T-bonds closed lower on Wednesday due to strength in the equity
markets. March opened lower and extended losses throughout the
session as it extended its setback off last week's high, which spiked
above this fall's downtrend line. Until March bonds close above
December's reaction high crossing at 102-05, the near-term trend will
remain sideways possibly into early-January. Stochastics and the RSI
are 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 sharply higher on Wednesday due to strength in
cattle, precious metals, fiber, and energies. Today's new high close
for December has set the stage for a possible test of the 25%
retracement level of this year's decline crossing at 194.76. Closes
above this resistance level and this year's downtrend line crossing
near 195.35 are needed to confirm that a major bottom and trend
change has taken place. Stochastics and the RSI are bullish signaling
that sideways to higher prices are possible into the early-January. 

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

The energy markets closed sharply higher on Wednesday, as OPEC
appears more certain of announcing on Friday an output cut of 2
million barrels of crude oil per day beginning January 1.

February crude oil closed sharply higher on Wednesday and above the
previous reaction high crossing at 21.05 thereby opening the door for
a larger-degree rebound into January. Session highs fell short of
testing the 38% retracement level of this fall's decline crossing at
21.77. If this resistance level is cleared, November's high crossing
at 22.83 is a possible target in early-January. Stochastics and the
RSI are bullish signaling that sideways to higher prices are possible
near-term. 

February heating oil closed into new highs for December on Wednesday
thereby negating the possibility that last week's high marked a
double top. Wednesday's high-range close opens the door for
additional gains into early-January with November's reaction high
crossing at 64.35 being the next likely upside target. Stochastics
and the RSI are bullish signaling that sideways to higher prices are
possible near- term. 

February unleaded gas soared to new highs for December as they
exceeded minor resistance crossing at 57.90 and filled November's gap
at 59.80. Today's high-range close sets the stage for follow-through
buying on Thursday. If the rally continues, November's high crossing
at 62.31 is February's next target. Momentum indicators are becoming
overbought but remain bullish signaling that additional gains are
possible into early-January.

February Henry Hub natural gas closed slightly higher on Wednesday
thereby confirming last Friday's breakout above this fall's downtrend
line. Extended weather forecasts are calling for below normal temps
to persist across the Midwest and eastward through the weekend before
a small warm up is possible. Unless there is an extended period of
time of below normal temps across high demand regions of the country,
upside potential remains limited due to the abundant supplies of
natural gas in storage. Short-term momentum indicators are bullish
signaling that sideways to higher prices are possible into
early-January. If the rebound continues, November's reaction high
crossing at 3.165 is February's next target. 

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

The March Dollar closed slightly lower on Wednesday due to light
profit taking as it consolidated some of Monday's gains.
Nevertheless, March remained above broken resistance marked by
November's high, which crosses at 118.27. If the rally continues, the
75% retracement level of this summer's decline crossing at 119.57 is
March's next upside target. Trend-following indicators such as the
ADX are entering bullish trend modes signaling that sideways to
higher prices are possible into early-January. 

The March Swiss Franc closed slightly higher on Wednesday due to
light short covering after spiking below September's low crossing at
.5860 in early trading. Today's high-range close leaves the door open
for additional short covering on Thursday. However, the recent
breakout below this fall's trading range has opened the door for
sideways to lower prices into early-January. If the decline
continues, fib support crossing at .5722 is March's next target. 

The March Canadian Dollar closed lower on Wednesday and below the 75%
retracement level of November's rally crossing at .6273. Momentum
indicators are bearish signaling that sideways to lower prices are
possible into early-January. If the decline continues, November's low
crossing at .6230 is March's next target. 

The March Japanese Yen plunged to new contract lows on Wednesday as
it continues to accelerate towards monthly fib support crossing at
.7568. The daily ADX is bearish signaling that additional weakness is
possible into early- January.

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

February gold closed higher on Wednesday as it extended its rebound
off last week's low. Closes above last week's high crossing at 281.40
are needed to renew February's rebound off December's low. Closes
above November's high crossing at 283.30 would open the door for a
larger-degree rebound as the new year begins. Stochastics and the RSI
are bullish signaling that sideways to higher prices are possible
into early-January. 

March silver closed slightly lower on Wednesday due light profit
taking as it consolidated some of its recent gains. If the rally
continues, the 62% retracement level of this fall's decline crossing
at 4.51 is March's next target. Stochastics and the RSI are very
overbought however, the ADX is bullish signaling that additional
gains are possible into early-January. 

March copper closed higher on Wednesday as it extended last Friday's
rebound off the 50% retracement level of November's rally crossing at
67.50. Closes above the reaction high crossing at 69.45 are needed to
confirm a bottom has been posted. Short-term momentum indicators are
turning bullish signaling that sideways to higher prices are possible
into the end of the year. 

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

March corn closed lower on Wednesday as they broke out below
November's low at 2.10 1/4 to post a new contract low. While a short
covering bounce is possible on Thursday, the door has been opened for
a possible test of weekly support crossing at 2.04 1/4 later this
winter. Short-term momentum indicators are bearish signaling that
sideways to lower prices are possible into early-January. Today's
sell off was triggered from increased fears that Argentina will be an
aggressive seller of wheat and corn early next year due to their
precarious economic and political situation. Additional pressure came
from uncertainty over China's corn supply situation, which paints a
bearish picture for U.S. corn exports.

March wheat closed lower on Wednesday due to fund selling. Spillover
weakness from corn and soybeans along with lackluster wheat export
shipments weighed on prices throughout the day. March wheat is
challenging minor trendline support drawn across this month's lows,
which crosses near 2.83. Closes below this support level would open
the door for a test of December's low crossing at 2.77 and then this
fall's low at 2.73 later this winter. While there was some talk about
a lack of snow cover across the Plains, which could lead to possible
winter kill, temps would have to remain below normal for a few weeks
before these concerns are taken seriously by the market. Today's
decline turned stochastics and the RSI bearish signaling that
sideways to lower prices are likely into early-January. 

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

January soybeans closed sharply lower on Wednesday, as South American
weather is not considered a major threat to big crops at this point
in time. Additional pressure came from political and economic
uncertainty in Argentina. Trading volume was light today as it did
not take much selling to push the market sharply lower on the day.
The low-range close leaves the door open for additional selling on
Thursday. Closes below this fall's low crossing at 4.26 1/4 would
renew the larger-degree downtrend while opening the door for a
possible test of weekly support crossing at 4.17 1/2 later this
winter. 

January soybean meal closed lower on Wednesday thereby confirming
last Friday's downside reversal. Today's sell off was somewhat of a
surprise to the market given the below normal temps, which have moved
across the Midwest since the weekend. Extended weather forecasts are
calling for below- normal temps to continue for the next 10-days.
Despite this bullish weather forecast, Wednesday's low-range close
sets the stage for follow-through weakness on Thursday. Closes below
December's low crossing at 147.60 would renew this fall's decline
while opening the door for a possible test of May's low crossing at
146. 

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

February hogs closed lower on Wednesday due to light profit taking as
it consolidated some of its recent gains. Today's round of profit
taking may continue into Friday's quarterly hogs and pigs report due
out Friday after the close. Pre- report estimates are as follows. 

All hogs and pigs 99.9% (range 98.9-101%)

Kept for breading 99.3% (range 98.5-101.5%)

Kept for marketing 100.1% (range 99-101%)

Trading is likely to remain subdued on Thursday with cash bids called
steady to firmer. Multiple closes above this summer's downtrend line
crossing near 56.40 are needed to keep February's rally off
December's low alive. Stochastics remain bullish signaling that
sideways to higher prices are possible into early-January. 

February cattle closed modestly higher on Wednesday due to a
late-session rally triggered by hopes for higher cash bids later this
week. Additional support came from expectations that this week's
Showlists would be lighter than last week. Gains were limited due to
futures premium to the cash market. Momentum indicators remain
bullish signaling that sideways to higher prices are possible into
early-January. If the rally off December's low continues, this fall's
high crossing at 73.50 is a potential target later this winter. 

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

The coffee market was closed today. Here is a recap of last Friday's
trade. March coffee closed sharply lower on Friday as it posted a key
reversal down ahead of the Christmas Holiday weekend. Locals and
funds were late sellers as they took advantage of thin pre-holiday
trading volume. Additional weakness next week is needed to confirm
today's bearish reversal pattern. Closes below 44.75 would confirm a
breakout into new contract lows thereby opening the door for a
possible test of psychological support crossing at 40- cents later
this winter. 

The cocoa market was closed today. Here is a recap of last Friday's
trade. March cocoa posted a quiet inside day with a slightly higher
close on Friday as it continues to consolidate below Wednesday's gap
crossing at 1297. Momentum indicators have turned bearish with this
week's setback thereby increasing the odds that a short-term top is
in place. If the decline resumes next week, December's low crossing
at 1212 is March's next target. Closes below 1212 would open the door
for a larger-degree decline into January. 

The sugar market was closed today. Here is a recap of last Friday's
trade. March sugar posted an inside day with a slightly higher on
Friday as it extended Thursday's short covering bounce following this
week's spike below the 50% retracement level of this fall's rally
crossing at 698. Momentum indicators remain bearish signaling that
sideways to lower prices are possible into early-January. I am
looking for March to renew this week's decline next week with
November's low crossing at 661 being a possible target later this
winter. 

March cotton closed modestly higher on Wednesday due to light
speculator buying however, trading volume was thin and is expected to
be that weigh for the balance of the week. Stochastics and the RSI
are neutral to bullish signaling that sideways to higher prices are
possible into early January. Closes above 37.60 or below 34.91 are
needed to clear up near-term direction in the market. 

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I N O   N E W S   
_____________________________________________________________________


Mark F. Duffy Re-elected CBOE Vice Chairman
   http://news.ino.com/press/?release=27658
Thursday's Natural Gas Trading To Be Extended By 15 Minutes
   http://news.ino.com/press/?release=27657
NYBOT Announces New Coffee Bagging Procedures
   http://news.ino.com/press/?release=27655
Fee Reduction For Globex FX Spreads Takes Effect Jan. 2
   http://news.ino.com/press/?release=27654

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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

XCZ3   Corn Dec 2003                                 249        20  +7.99
GIF2   Goldman Sachs Commodity Index Jan 2002     175.70      6.50  +3.81
LBN2   Random Length Lumber Jul 2002              268.10      6.00  +2.24
CTN3   Cotton Jul 2003                             47.40      0.75  +1.61
RLH2   Russell 2000 Index Mar 2002                492.75      6.50  +1.34
NDM2   NASDAQ 100 Index Jun 2002                 1591.00     20.00  +1.26
LHJ2   Lean Hogs Apr 2002                         58.875     0.650  +1.11
CRY0   CRB/Bridge index Cash                      193.49      1.90  +0.99
EJH2   Euro/Japanese Yen Mar 2002                 114.09      1.09  +0.97
BPM2   British Pound Jun 2002                     1.4400    0.0134  +0.94

LOSERS

WZ3    Wheat Dec 2003                                305    -8 1/2  -2.78
LBU2   Random Length Lumber Sep 2002              266.00     -7.00  -2.56
ON2    Oats Jul 2002                             156 1/2        -4  -2.49
DBN2   Butter Jul 2002                           149.500    -3.500  -2.29
PBK2   Frozen Pork Bellies May 2002               79.500    -1.600  -1.98
NKM2   Nikkei 225 Stock Avg Jun 2002               10400      -200  -1.92
DAK2   BFP Milk May 2002                           11.81     -0.22  -1.83
XSF2   Soybeans Jan 2002                         428 1/4    -7 1/2  -1.72
BOH2   Soybean Oil Mar 2002                        15.58     -0.27  -1.70
XEH2   Soybean Meal Mar 2002                       144.9      -2.4  -1.64

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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

ASW    A.C.L.N. LTD                                10.31      2.51  +32.22
ARTD   ARTISTDIRECT INC                          12.2500    2.1500  +21.29
NVGN   NOVOGEN LTD SPONS ADR                      7.5100    1.4210  +20.96
EMITF  ELBIT MEDICAL IMAGING                      6.2200    0.9800  +18.63
OSIS   OSI SYSTEMS                               19.2000    3.0100  +18.58
OHB    ORLEANS HOMEBUILDERS                         5.39      0.85  +17.89
FORTY  FORMULA SYSTEMS(1985)ADR                  17.0000    2.5700  +17.79
TAR    TELEFONICA DE ARGENTINA SA NEW              11.29      1.59  +16.55
ARTL   ARISTOTLE CORP                             7.5200    1.0800  +15.61
ADPI   AMER DENTAL PARTNERS                       6.7300    0.8800  +15.04

LOSERS

CNC-V  CONSECO FIN TR V 8.70%'TOPRS'                9.45     -1.77  -16.21
SBSIP  SOUTHSIDE CAP TR 8.50% PFD                10.0000   -1.6175  -15.35
IGC    INTERSTATE GENL L.P.'A'                      5.15     -0.75  -13.64
CNC-T  CONSECO FIN TR I 9.16%'TOPRS'                9.75     -1.33  -11.82
MDCI   MEDICAL ACTION INDUSTRIES                 13.3100   -1.6500  -11.34
TESTB  TEST SECURITY                            270.9600  -33.9400  -11.13
UNEWY  UNITED BUSINESS MEDIA PLC                  7.5000   -0.8100  -10.56
IC     ICICI LTD ADS                                5.71     -0.59  -9.53
DSWT   DURASWITCH INDUSTRIES INC                  8.0800   -0.8000  -9.14
TTES   T-3 ENERGY SERVICES INC                   10.0000   -1.0000  -9.09
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T H A N K   Y O U
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