M O N D A Y   E X T R E M E   M A R K E T S
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Monday: The CRB Index has retreated 1.31 points to 214.62. The
US Dollar Index moved up 0.39 points to 115.32.

The Dow Industrials declined 21.80 points, at 10935.17, while
the S&P 500 slipped 3.10 points, last seen at 1263.51. The
Nasdaq Composite moved down 17.98 points to 2173.55.

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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 were lower on Monday in subdued trading as many
players remained on the sidelines ahead of this week's economic news.
Overall losses were limited due to gains in chip stocks. Both indexes
are at important crossroads as they are challenging April's highs.
Multiple closes above these resistance levels are needed to extend
this spring's rallies. At the same time, momentum indicators are
overbought warning bulls to use caution as short-term tops might be
in or near.

The Dow closed lower on Monday but near mid-range. Light support came
from drug and cyclical stocks. Gains in Caterpillar, Eastman Kodak
and IBM also provided support for the Dow. Momentum indicators remain
bullish signaling that a test of February's high crossing at
11,035.10 is still possible this month.

INTEREST RATES June bonds closed lower on Monday as they extended
last Friday's loss. Expectations are running at 80-90% that the Fed
will cut interest rates by another 50-basis-points at its May 15th
FOMC meeting following last week's larger-than-expected unemployment
report. Today's setback was no big surprise giving last Friday's poor
close. Nevertheless, last week's breakout above this spring's
downtrend line signals that a short-term bottom and trend change has
taken place. Momentum indicators remain bullish signaling that
sideways to higher prices near-term are possible. If June resumes
last week's rally the 50% retracement level crossing at 103-20 is a
potential target.

The CRB INDEX closed lower on Monday due to weakness in grains,
bellies and energies. Today's decline turned a number of momentum
indicators including stochastics bearish warning traders that last
week's high might have marked a double top with April's high. Closes
below 212.64 would open the door for a larger- degree decline during
May.

ENERGY MARKETS closed lower on Monday due to profit taking that was
triggered by comments made by President Bush who indicated his
concerns over high retail energy prices. Additional pressure came
from expectations that this week's API data will once again show
stocks rose last week. Retail gasoline prices are running at record
highs, eclipsing last June's levels amid a series of disruptions at
refineries that feed the gas-hungry U.S. market.

June crude oil closed lower on Monday and in doing so turned a number
of short-term momentum indicators neutral to bearish. Closes below
last week's low crossing at 27.37 would confirm that the short-term
trend has turned down. I would not be surprised to see a steady to
higher close on Tuesday due to light short covering. Resistance
begins at 29.40 then February's high crossing at 30.13.

June heating oil closed sharply lower on Monday but remains within
last week's trading range. Closes above 77.80 or below 73.10 are
needed to confirm a breakout of a two-week trading range and clear up
near-term direction in the market. Momentum indicators are neutral to
bearish hinting that sideways to lower prices near-term are possible.

June unleaded gas posted a key reversal down on Monday due to profit
taking after falling short of testing weekly resistance crossing at
109.60. Additional weakness on Tuesday is needed to confirm today's
bearish reversal pattern. However, it will take closes below
trendline support crossing near 103-25 before a top and trend change
can be confirmed. The weekly ADX (a trend-following indicator)
remains in a bullish trend mode signaling that we could see
additional gains this spring.

June Henry Hub natural gas plunged below key weekly support crossing
at 4.38 on Monday due to expectations that this week's AGA inventory
data will continue to show natural gas supplies building. Today's
plunge below key support crossing at 4.38 has opened the door for
additional weakness and a possible test of the 75% retracement level
of the 1999/2000 rally crossing at 3.625 later this spring. The
rising ADX signals that additional weakness during May is possible.

CURRENCIES The June Dollar closed higher on Monday and above April's
uptrend line crossing near 115.27. Additional gains on Tuesday would
increase the odds that last week's correction has come to an end.
Momentum indicators are neutral to bullish signaling that sideways to
higher prices near-term are possible.

The June Swiss Franc and D-mark closed lower on Monday as they
extended last week's narrow trading ranges. Closes above April's high
or low are needed to clear up near-term direction in both markets.
Momentum indicators remain bearish signaling that sideways to lower
prices near-term are possible.

The June Canadian Dollar closed sharply lower and below April's
uptrend line on Monday thereby confirming last Friday's key reversal
down and trendline breakout. With this spring's rally stalling out
near the 50% retracement level of this year's decline and Monday's
trendline breakout, the door is open for sideways to lower prices
during May. Momentum indicators have also turned bearish signaling
that additional weakness is possible. I would not be surprised to see
a lower opening on Tuesday but would not rule out a short covering
bounce.

The June Japanese Yen closed higher due to a late- session rally as
the market continues to challenge the upper boundary of this spring's
trading range crossing at .8327. Multiple closes above this
resistance level are needed to confirm a breakout and trend change.
Momentum indicators are bullish hinting that additional gains are
possible.

PRECIOUS METALS June gold closed steady on Monday as it remains above
April's uptrend line but below the long-term downtrend line crossing
near 269. Momentum indicators have become overbought warning traders
that June gold is at an important crossroads. Closes above or below
the aforementioned support/resistance levels are needed to clear up
near-term direction in the market.

July silver posted an inside day with a lower close as the market
fell short of testing the lower boundary of this spring's trading
range crossing at 4.31. Closes below 4.31 are needed to confirm a
trading range breakout and trend change. Momentum indicators are
bearish but nearing their respective overbought zones hinting that
this spring's trading range may remain intact for the time being.

July copper posted an inside day with a higher close due to light
short covering as it consolidated some of last Thursday and Friday's
losses. Closes below last Friday's low crossing at 78.00 would turn a
number of short-term momentum indicators bearish thereby increasing
the odds that a short-term top was posted last week.

GRAINS July corn posted a key reversal down on Monday as forecasts
for increased precip across the dry eastern Corn Belt and a quiet
export market weighed on prices. Trading is likely to remain subdued
ahead of Thursday's supply/demand report. This afternoon's planting
progress report showed that 58% of the U.S. corn crop is planted
compared with 74% a year ago and 52% for the five-year average. This
will likely add to the selling pressure on Tuesday, as planting delay
fears will have been reduced. July's inability to close above broken
support crossing at 2.11 underscores the weak tone surrounding the
corn market at this point in time.

July wheat closed sharply lower on Monday following widespread rains
that fell across portions of the Plains over the weekend. Today's
breakout below trendline support crossing near 2.71 fell short of
testing March's low of 2.65 1/2. Closes below this support level
would renew the long-term downtrend while setting the stage for a
possible test of weekly support crossing at 2.50 later this summer. I
would not be surprised to see a steady to higher close on Tuesday due
to short covering following today's late- session bounce. Today's
planting progress report showed that 35% of the spring wheat is
planted compared with the five-year average of 50%. The crop
conditions report for winter wheat showed that 26% is rated poor to
very poor, 33% is fair and 41% is rated good to excellent.

SOYBEAN COMPLEX July soybeans closed lower on Monday due to increased
chances for rain across the eastern Soybean Belt this week. July
soybeans continue to hold above broken trendline resistance as they
extended last week's trading range. However, upside potential appears
limited in the face of slowing export sales, burdensome carryout
levels and increased U.S. planted acreage this year. If the rally off
the late-April low resumes, this spring's high at 4.49 3/4 is July's
next target. Momentum indicators are bullish but nearing their
respective overbought zones hinting that a short-term top might be in
or near.

July soybean meal closed lower on Monday due to light profit taking
and spillover selling from soybeans and wheat. Today's mid-range
close leaves the door open for sideways to higher trading on Tuesday
as last week's rally opened the door for a possible test of March's
high crossing at 160.50 later this spring. Momentum indicators are
bullish but nearing their respective overbought zones warning bulls
to use caution.

LIVESTOCK June hogs posted a potential downside reversal on Monday
but held above the 2000-01 uptrend line crossing near 66.75. Multiple
closes below this support level would confirm a trendline breakout
while opening the door for a larger-degree decline this spring.
Weekly momentum indicators have turned bearish signaling that
additional weakness near-term is possible.

June cattle closed higher on Monday as it extended last Friday's
late-session short covering bounce. Signs of rising boxed-beef prices
triggered today's rally. However, gains were limited by expectations
for steady to $1.00 lower cash bids this week. Momentum indicators
are oversold and diverging following last week's test of January's
low. I would not be surprised to see additional short covering during
the first half of this week.

FOOD & FIBER July coffee resumed this spring's short covering rally
as traders continue to build in a modest weather premium as winter
approaches in Brazil. If this month's rally continues, March's high
at 71.70 is July's next target. Momentum indicators remain bullish
signaling that additional short-term gains are possible this week.

July cocoa closed modestly higher in narrow trading as it continues
to consolidate above this spring's lows crossing at 955. Closes above
1034 or below 955 are needed to clear up near-term direction in the
market.

July sugar closed lower on Monday due to profit taking hinting that
the market might have priced in all of the bullish export news from
Asia at this point in time. Momentum indicators are very overbought
and turning neutral to bearish hinting that a short-term top is in or
near. If the decline off last week's high continues, trendline
support crossing near 885 is July's next target. Closes below this
support level would confirm a short-term top has been posted. If the
rally continues, this year's high crossing at 941 is July's next
target.

July cotton closed slightly higher on Monday as it consolidates near
the bottom of this spring's trading range. Trading is likely to
remain subdued ahead of this week's supply/demand report. Favorable
moisture conditions across west Texas and the Delta along with
burdensome carryout levels continues to limit gains in both old and
new-crop cotton.

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T O P   N E W S
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STOCKS

Japan Stocks Review: Up 0.8%, little reaction to PM's speech
   http://news.ino.com/summary/?id=25255
US Equities Review: Lower in quiet, aimless trade
   http://news.ino.com/summary/?id=25254
UK Stocks Review: FTSE-100 bounces back despite US data hiccup
   http://news.ino.com/summary/?id=25261

FOREX

US FX Review: Dollar mixed; euro pressured by weak data
   http://news.ino.com/summary/?id=25257
Asia FX Review: Koizumi speech fails to set JPY direction
   http://news.ino.com/summary/?id=25262
Europe FX Review: Poor U.S. jobs data sends dollar reeling
   http://news.ino.com/summary/?id=25256

CREDIT

US Credit Review: Short end posts slim gains on rate cut hopes
   http://news.ino.com/summary/?id=25253
Europe Credit Review: US labor mkt weakness good news for bonds
   http://news.ino.com/summary/?id=25258
Japan Credit Review: Jun up but market lacks overall direction
   http://news.ino.com/summary/?id=25260

COMMODITIES

US Futures Summary: Energy takes a dive; coffee jumps
   http://news.ino.com/summary/?id=25259

EXCHANGES

CME Posts Record Open Interest On Second Busiest Day
   http://news.ino.com/press/?release=23558

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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

BDU1   Oriented Strand Board Sep 2001             224.60     10.00  +4.66
KCN1   Coffee 'C' Jul 2001                         68.75      2.70  +4.08
LBF2   Random Length Lumber Jan 2002              309.50      9.50  +3.17
DBV1   Butter Oct 2001                           190.000     5.000  +2.70
CCK1   Cocoa May 2001                               1034        22  +2.17
SEN1   Sugar #14 Domestic Jul 2001                 21.34      0.20  +0.95
NKH2   Nikkei 225 Stock Avg Mar 2002               14520       125  +0.87
HUF2   New York Harbor Unleaded Gasoline Jan 20    0.7750    0.0063  +0.82
HOH2   Heating Oil Mar 2002                         7580        58  +0.77
ERY0   FTSE Eurotop 100 Cash                      3286.3      21.8  +0.67

LOSERS

DJU1   Dow Jones Industrial Avg. Sep 2001         110200      -660  -5.95
NGM1   Henry Hub Natural Gas Jun 2001              4.230    -0.260  -5.79
PBQ1   Frozen Pork Bellies Aug 2001               78.050    -3.000  -3.70
PNV1   Propane Oct 2001                           0.5325   -0.0125  -2.29
HON1   Heating Oil Jul 2001                       0.7525   -0.0172  -2.23
XWZ1   Wheat Dec 2001                            295 1/2    -6 1/4  -2.09
HUM1   New York Harbor Unleaded Gasoline Jun 20    1.0630   -0.0213  -1.96
SMV1   Soybean Meal Oct 2001                       146.7      -2.9  -1.94
NDM1   NASDAQ 100 Index Jun 2001                 1903.00    -37.50  -1.93
CLM1   Light Sweet Crude Oil Jun 2001              27.77     -0.51  -1.80
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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

MGAMW  MULTIMEDIA GAMES WRRT'A'                     6.10      1.80  +41.38
LNOP   LANOPTICS LTD                               12.05      3.40  +39.31
BWE    BANCWEST CORP                               34.31      9.35  +37.43
PXCM   PROXICOM INC                                 7.44      1.78  +31.45
PYR    PYR ENERGY CORP                              6.73      1.48  +28.19
AMSC   AMER SUPERCONDUCTOR                         19.01      4.11  +27.40
NIS    NOVA CORP                                   29.05      5.73  +24.36
CRDS   CROSSROADS SYSTEMS                           8.55      1.63  +23.55
LSBC   LARGE SCALE BIOLOGY                          6.10      1.10  +22.00
ARRY   Array BioPharma                              6.45      1.14  +21.47

LOSERS

PRSF   PORTAL SOFTWARE INC                          5.93     -3.38  -36.42
HMNF   HMN FINANCIAL                               13.75        -5  -35.71
TMTA   TRANSMETA CORP                              11.17     -3.40  -23.34
MAXC   MAXCO INC                                    7.50     -1.43  -19.07
CANI   CARREKER CORP                               21.22     -4.83  -18.54
CRXL   Crucell N.V. ADS                             5.75     -1.27  -18.09
IVAC   INTEVAC INC                                  5.30     -0.83  -14.19
PMSI   PRIME MEDICAL SERVICES                       5.25     -0.82  -13.40
CTCI   CT COMMUNICATIONS                           13.00     -2.00  -13.33
KOSN   KOSAN BIOSCIENCES                            8.30     -1.24  -13.30

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