F R I 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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Friday: The CRB Index is up 0.81 points to 189.85. The
US Dollar Index gained 1.10 points to 119.74.

The Dow Industrials climbed 44.01 points, at 9840.08, while
the S&P 500 edged higher by 1.13 points, last seen at 1133.28. The
Nasdaq Composite trended lower by 4.88 points to 1937.70.
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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 closed lower on Friday due to disappointing earnings
forecasts, which offset more optimistic prospects for a recovery in
the economy. The NASDAQ gapped down on the open and closed this
week's gap crossing at 1925.15 before rebounding on light short
covering ahead of the close. Momentum indicators are bottoming and
hint that a low might be in or near following this week's bounce of
the 38% retracement level crossing at 1826.96 marked a short-term
bottom. The NASDAQ closed down 48.80 points at 1937.70. The March S&P
500 index also closed steady on Friday at 1133.30.

The Dow closed out the week on a high note on Friday due to growing
optimism about a recovery in the economy. Additional support came
from technical buying triggered by the Dow's ability to hold above
key fib support crossing at 9706.20. Short-term momentum indicators
are turning bullish from oversold conditions signaling that a low is
in or near. Closes above minor resistance crossing at 9857.70 are
needed to temper the bearish outlook in the market.

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

March T-bonds closed lower on Friday but off session lows due to a
short covering bounce ahead of the weekend. Early weakness was tied
to market expectations that the Federal Reserve will not be cutting
interest rates again when it meets next week. Today's mid-range close
leaves the door open for sideways trading on Monday. However,
momentum indicators remain bearish signaling that sideways to lower
prices are possible into early February. If the decline continues,
December's uptrend line crossing near 101-00 is March's next target.

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

The CRB index closed higher on Friday due to strength in livestock,
some precious metals, fiber, some foods and energies. Friday's close
above the 50% retracement level of the October-January rally crossing
at 189.40 hints that a short-term bottom might be near. However,
closes above 191 will be needed before this can be confirmed. If this
decline continues, the 62% retracement level crossing at 187.85 is
the CRB's next target. Momentum indicators are bearish but becoming
oversold hinting that a low might be in or is near.

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

The energy markets closed higher on Friday although trading was
subdued as cash trading in the February contract wrapped up today.
Most traders upon completion of their deals for February remained on
the sidelines in no hurry to jump into the March contracts. Light
technical support came from ideas that the U.S. economy has bottomed
out and a recovery is beginning to take shape, which should
eventually manifest itself in higher energy demand later this year.

March crude oil extended its short covering rally on Friday closing
at broken uptrend line support crossing near 20.00. Multiple closes
above this broken support level are needed before a double bottom can
be confirmed. Stochastics and the RSI are turning bullish with this
week's rebound increasing the odds that a low is in or near.

March heating oil closed modestly higher on Friday but failed to
clear minor resistance marked by last week's high crossing at 54.70.
Closes above this resistance level are needed to increase the odds
that a short-term bottom has been posted. At the same time a number
of short-term momentum indicators are turning bullish signaling that
a bottom has likely been posted.

March unleaded gas closed higher on Friday retracing 50% of this
month's decline this week. While short-term momentum indicators have
turned bullish signaling that a low has been posted, I would not be
surprised to see the market under some selling pressure on Monday as
rising inventories and weak demand will likely limit upside potential
near-term. Longer-term, I am looking for March to work its way higher
possibly testing the 62-cent area by early-February.

March Henry Hub natural gas closed slightly higher on Friday due to
light short covering as it consolidated some of its recent losses.
However, the door remains open for additional weakness into early
February with weekly support crossing at 1.76 marking a potential
target later this winter. Momentum indicators are oversold but
suggest that additional weakness near-term is possible.

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

The March Dollar soared to new contract highs on Friday thereby
confirming Thursday's breakout above December's high crossing at
118.85. Today's rally was triggered by growing optimism of a recovery
in the U.S. economy that are better than the market had originally
thought after Fed Chairman Greenspan's speech on January 11. Today's
high spiked above key weekly resistance crossing at 120.11. If this
resistance level is cleared, last year's high crossing at 121.29 is
March's next upside target. While stochastics and the RSI are
becoming overbought, trend-following indicators such as the ADX are
ending a bullish mode signaling that additional strength is possible
this winter.

The March Swiss Franc plunged to new lows for the month against the
Dollar but fell short of testing December's spike low crossing at
.5797. A short covering bounce ahead of the close tempered some of
today's loss while leaving the door open for a possible inside day on
Monday. However, the daily ADX has entered a bearish mode signaling
that additional weakness near-term is likely into early-February.

The March Canadian Dollar closed sharply lower on Friday and below
broken support crossing at .6230 thereby ending this week's short
covering bounce. March's inability to sustain this week's breakout
above broken support crossing at .6230 leaves the door open for a
possible resumption of the decline off December's high. Today's sell
off turned a number of momentum indicators bearish once again
signaling that sideways to lower prices are possible into early-
February.

The March Japanese Yen closed higher on Friday due to light short
covering as it consolidated some of this week's losses. However, the
rebound failed to test broken weekly support crossing at .7558
thereby leaving the door open for additional weakness near-term and a
possible test of the next level of long-term support crossing at
.7371. Momentum indicators are bearish signaling that additional
weakness is likely. I am looking for a short-term bottom to be posted
by the middle of next week.

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

February gold closed modestly higher on Friday due to light short
covering ahead of the weekend as it consolidates above the 62%
retracement level of the December-January rally crossing at 278.70.
However, stochastics are bearish signaling that additional weakness
is possible into early- February. If the decline continues, the 75%
retracement level of this winter's rally crossing at 276 is
February's next target.

March silver closed higher on Friday due to technical short covering.
Access trading saw March test broken support marked by the 62%
retracement level of November's rally crossing at 4.327. A sell off
ahead of the close tempered today's gains leaving the door open for
sideways trading on Monday. If the decline resumes, the 75%
retracement level crossing at 4.221 marks the next downside target.
Momentum indicators are bearish signaling that sideways to lower
prices are possible into early February.

March copper posted a downside reversal due to light profit taking
ahead of the weekend. Early strength spiked above last week's high
crossing at 71.40. However, March needs to close above this minor
resistance level to temper the bearish outlook in the market. Until
then, this week's rebound is nothing more that a short covering
bounce. Momentum indicators are bullish but nearing their respective
overbought zones hinting that we could see additional pressure into
early-February.

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

March corn closed fractionally lower on Friday despite a significant
increase in this week's export sales. Weekly export sales came in at
51.33 million bushels some 42% above the previous weeks pace. While
the sales number was impressive spillover weakness from soybeans
combined with a soaring U.S. Dollar rendered the report mute by the
close. Today's downside reversal leaves the market vulnerable to
additional weakness on Monday especially if the dry regions across
southern Brazil receive much needed rain over the weekend. From a
broad perspective, the corn market continues to carve out what
appears to be a major bottom as long-term fundamentals indicate that
prices are too cheap. I suspect that the corn market will struggle to
stay afloat into mid- February when the mid-winter low is due to be
posted.

March wheat closed fractionally higher on Friday, as much improved
export sales this week helped to underpin today's rally. Additional
support came from extended weather forecasts for next week, which are
calling for significantly lower temperatures across the Plains that
could burn back some stands. However, a soaring U.S. Dollar along
with weakness in soybeans and corn limited today's rally. Momentum
indicators remain bearish despite this week's bounce indicating that
additional weakness is possible into early-February. I am still
looking for one more break to new lows for the month with the
late-December reaction low crossing at 2.83 marking the next likely
downside target.

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

March soybeans posted a key reversal down on Friday. Revised weather
forecasts for Brazil's Rio Grande do Sul state have increased the
amount of expected rainfall for this region over the weekend, which
triggered today's sell off. Additional pressure came from rumors that
China would be out of the U.S. soybean market until at least April
because of the implementation of rules on GMO soybeans. Session lows
fell short of testing gap support crossing at 4.28 1/2 and extending
down to 4.26 3/4. Momentum indicators remain bearish signaling that
additional weakness is possible into the first half of February when
a mid-winter low is due to be posted.

March soybean meal posted a downside reversal on Friday thereby
setting the stage for additional weakness on Monday especially if
South America receives rain over the weekend. If the decline off last
week's high resumes, gap support crossing at 147.90 is March's next
likely downside target. Momentum indicators remain bearish signaling
that additional weakness is possible into early-February.

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

April hogs closed higher on Friday but ran into stiff resistance
marked by the broken uptrend line drawn across the December-January
lows. Closes above or below this week's trading range are needed to
clear up near-term direction in the market. This afternoon's monthly
hogs and pigs report showed the December 2001 pig crop at 8.07
million head up 3% from the previous year. Farrowing were up 2% over
last year and litter size rose to 8.8 pigs per litter compared to
8.66 pigs per litter last year. Talk of steady to higher cash bids
for Monday leaves the door open for a steady to higher opening in
April futures.

April cattle closed higher for the Third day in a row on Friday as it
spiked to a new high for the year. Support came from next week's
winter weather forecast and higher cash bids for slaughter-ready
cattle. Today's spiked to new highs for the month hint that cattle
producers might be gaining the upper hand in the market as market
ready cattle supplies are likely to decline into February. If April
extends this week's rally next week, October's high at 75.45 is
April's next target. Momentum indicators are turning bullish hinting
that the cattle market is poised for one more drive to new highs for
the winter.

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

March coffee closed into new lows for the week on Friday amidst
increased fund selling and producer hedging ahead of the weekend.
Forecast calling for increased chances for precip across portions of
Brazil's coffee growing region only adds to the bearish tone of the
market as expectations for a record coffee crop continue to grow.
Momentum indicators are bearish signaling that sideways to lower
prices are likely into the end of January. This sets the stage for a
possible test of this winter's low crossing at 44.75 later this
winter.

March cocoa closed higher on Friday amidst lackluster trading as it
ended a one-day setback with today's higher close. Short-term
momentum indicators are bullish signaling that sideways to higher
prices are possible near-term. However, closes above 1422 or below
1260 are needed to confirm a breakout of this winter's trading range.

March sugar closed higher on Friday due to short covering ahead of
the weekend. Early weakness saw March fall just short of testing
December's low crossing at 690. However, March's inability to test
this support level along with today's high-range close leaves the
door open for additional short covering on Monday. Closes above this
week's gap crossing at 730 would signal that a short-term bottom has
likely been posted.

March cotton closed higher on Friday due to short covering ahead of
the weekend despite today's disappointing export sales report. The
report showed net cotton sales of 99,000 bales, which was well below
last week's level and the 4-week average. However, this week's sell
off largely discounted the drop off in sales. Nevertheless, momentum
indicators remain bearish signaling that a test of trading range
support crossing near 34.91 is possible later this month.

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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

SIZ4   Silver Dec 2004                             4.457     0.171  +3.86
LBH2   Random Length Lumber Mar 2002              288.00      9.90  +3.56
CCH3   Cocoa Mar 2003                               1200        35  +2.99
NGG2   Henry Hub Natural Gas Feb 2002              2.037     0.057  +2.78
SBH2   Sugar #11 World Mar 2002                     7.13      0.18  +2.58
HUG2   New York Harbor Unleaded Gasoline Feb 20    0.5828    0.0135  +2.37
CLZ2   Light Sweet Crude Oil Dec 2002              20.61      0.46  +2.27
PAH2   Palladium Mar 2002                         388.15      7.00  +1.83
CTK2   Cotton May 2002                             38.26      0.66  +1.76
RRK2   Rough Rice May 2002                         4.105     0.065  +1.61

LOSERS

XOH2   Oats Mar 2002                             193 1/4    -6 1/2  -3.27
BOH2   Soybean Oil Mar 2002                        15.06     -0.47  -3.03
OH2    Oats Mar 2002                             193 1/4    -4 3/4  -2.39
AFK2   Aluminum May 2002                          0.6525   -0.0135  -2.03
XPH2   British Pound Mar 2002                     1.4044   -0.0274  -1.93
EJH2   Euro/Japanese Yen Mar 2002                 115.66     -2.13  -1.81
KCZ2   Coffee 'C' Dec 2002                         55.55     -0.90  -1.60
XSH2   Soybeans Mar 2002                         430 3/4        -7  -1.60
SN3    Soybeans Jul 2003                             460    -7 1/2  -1.60
SFH2   Swiss Franc Mar 2002                      0.58690  -0.00940  -1.58

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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

DTAGY  DIGITALE TELEKABEL ADS                     8.0000    3.7000  +73.27
TESTV  TEST SECURITY                             41.3500   11.5500  +26.32
USG    USG CORP                                     8.50      1.45  +20.57
IMR    IMCO RECYCLING                               7.65      1.27  +19.91
NOBL   NOBLE INTERNATIONAL LTD                   11.8000    1.4700  +14.30
TREE   LENDINGTREE INC                            8.9900    1.1100  +14.10
GP     GEORGIA-PACIFIC CORP                        24.70      2.95  +13.56
DLTR   DOLLAR TREE STORES                        32.7800    3.7200  +12.80
ARTI   ARTISAN COMPONENTS                        14.5000    1.6700  +12.58
SNWL   SONICWALL INC                             20.3600    2.2400  +12.23

LOSERS

RSAS   RSA SECURITY INC                          11.8600   -4.6800  -28.12
GTW    GATEWAY INC                                  5.22     -1.14  -17.92
OPTV   OPENTV CORP CL A                           6.9900   -1.4700  -17.44
IMCL   IMCLONE SYSTEMS                           16.4900   -3.1600  -16.14
ACRT   ACTRADE FINANCIAL TECH LTD                26.6190   -5.0800  -15.85
CNXS   CNS INC                                    5.3900   -0.9500  -15.32
GHM    GRAHAM CORP                                 10.75     -1.85  -15.23
BEIQ   BEI TECHNOLOGIES                          18.5300   -3.1700  -14.88
IINT   INDUS INTL                                 6.6500   -1.0600  -13.50
TPTH   TRIPATH IMAGING INC                        6.2925   -0.8900  -12.45
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