T U E S D A Y   E X T R E M E   M A R K E T S
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December 12: The CRB Index edged lower 2.45 points to 229.91. The
US Dollar Index gained 0.02 points to 114.26.

The Dow Industrials gained 42.47 points, at 10768.27, while
the S&P 500 moved lower 9.02 points, last seen at 1371.18. The
Nasdaq Composite moved lower 83.23 points to 2931.87.

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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 posted inside days with lower
closes. Light pressure came from some negative pre- announcements on
earnings in tech stocks that led to today's consolidation. The March
S&P is consolidating just below trendline resistance crossing near
1410. The March Nasdaq has broken out above this fall's downtrend
line crossing near 2900 thereby hinting a bottom and trend change may
be in place. Momentum indicators are bullish signaling sideways to
higher prices in both markets are possible near-term. Meanwhile, the
Dow closed modestly higher as it extends its rebound off last
Thursday's low. Closes above 10,917.30 are needed to extend this
month's rebound into the end of the year.

INTEREST RATES March bonds closed modestly higher on the day due to a
late-session short covering rebound triggered by today's decline in
the Nasdaq. Trading remains choppy, as the market is nervous over the
much-anticipated ruling by the Supreme Court that should decide the
outcome of the U.S. Presidential election. March bonds are
challenging November's uptrend line crossing near 102- 28. Multiple
closes below this support level would all but confirm a top and trend
change has taken place. Closes above last week's high at 104 are
needed to resume the late-fall rally.

CRB INDEX closed sharply lower on Tuesday pressured by weakness in
heating oil, unleaded gas, cotton, foods, and grains. The CRB has
been range bound following last Monday's strong rally and appears to
be forming a possible symmetrical triangle. A breakout in either
direction of this consolidation pattern should lead to a trending
move in the direction of the breakout. Momentum indicators are
neutral to bearish warning traders that a broad double top with
October's high also appears to be forming.

ENERGIES The energy markets closed mixed on Tuesday as February crude
oil closed slightly higher while the product markets were lower
following the release of bearish API (American Petroleum Institute)
data, which showed gasoline and distillate stocks including heating
oil building. Nevertheless, the oversold condition of the energy
complex has left the doors open for a short covering rebound into the
end of the year especially if Iraq continues its oil embargo while
negotiating over price with the United Nations. Look for sideways to
lower price action on Wednesday.

CURRENCIES the March Dollar closed slightly lower on Tuesday due to
light profit taking as it consolidated some of its gains off last
week's low. Nevertheless, momentum indicators are oversold and
turning neutral to bullish signaling sideways to higher prices into
the end of the year are possible. The March Swiss Franc and D-mark
closed steady to slightly higher due to light short covering on
Tuesday. However, today's poor closes leave the doors open for
sideways to lower prices near-term as both markets appear to have
posted short-term tops with last week's highs. The March Japanese Yen
closed lower on Tuesday after opening under pressure. Concerns over
the Japanese economy and uncertainty over the U.S. Presidential race
triggered today's sell off in the yen. Closes below .9088 would renew
this fall's decline and set the stage for a test of weekly support
crossing at .8978 later this winter.

PRECIOUS METALS were closed mixed on Tuesday. February gold posted a
quiet inside day due to light short covering as it consolidated some
of its recent losses. However, today's mid-range close leaves the
door open for a resumption of the decline off last week's high.
Closes below trendline support crossing near 271.80 would confirm
this fall's rebound has likely come to an end. March silver extended
Monday's short covering rally. However, early gains faded into the
close hinting this week's bounce has likely come to an end. March
silver is poised to renew its decline off last week's high with
November's lows at 4.69 cents being the next target. March copper
closed lower on Tuesday following Monday's spike above the 62%
retracement level of this fall's decline, which crosses at 89.47.
Closes below November's uptrend line crossing near 87.50 would all
but confirm the late-fall rebound has come to an end. Momentum
indicators are overbought and turning neutral to bearish with today's
loss.

GRAINS closed lower on Tuesday. March corn closed fractionally lower
in relatively quiet trading following this morning's neutral supply
and demand report. The USDA lowered its export projection by 75
million bushels to 2.2 billion bushels. The also raised ending stocks
by the same amount to 1.754 billion bushels. These changes were
widely anticipated by the market. Momentum indicators remain bearish
signaling March corn is likely to drift sideways to lower into the
end of the year. Bulls are hopeful that the Starlink issue will be
resolved by then, which should lead to an increase in foreign demand
after the first of the year. March wheat also closed lower on Tuesday
despite today's surprise increase in this year's export projection by
the USDA. Expectations for lower production in Australia and Europe
led to the increase. Carryout was also cut from 892 to 862 million
bushels. However, spillover weakness from soybeans and meal was
enough of a reason to trigger the late-session sell off. March is
challenging trading range support crossing at 2.69. Closes below this
support level could lead to a test of Sept.'s low at 2.63 1/2 and
possibly long-term support at 2.50 later this winter.

SOYBEAN COMPLEX closed mixed on Tuesday. January beans finished the
day on the minus side despite today's increase in U.S. export
projections. The USDA raised export sales for this year from 950 to
975 million bushels and lowered carryout by 30 million bushels to 320
million bushels. January beans are consolidating around fib
resistance crossing at 5.10 3/4. The rising ADX signals sideways to
higher prices near-term are possible. If the post-harvest rally
continues, the fall high at 5.25 is a target. January soybean meal
extended its rebound off last Friday's low following today's friendly
supply and demand report. The USDA raised its export project some
200,000 tons to 7,300 million tons for the year. The increase was due
entirely to the expected increase of meal demand from Europe due to
the recent ban on meat and bone meal in animal feed. While light
profit taking is possible on Wednesday to consolidate some of this
week's gains. The door remains open for sideways to higher prices
into the end of the year. January bean oil closed lower on Tuesday
following today's bearish supply and demand report. The USDA raised
ending stocks from 2.145 to 2.250 billion pounds and lowered export
projections from 1.650 to 1.550 billion pounds. Additional weakness
on Wednesday would set the stage for a test of November's low at
14.64 later this month.

LIVESTOCK closed mixed on Tuesday. February hogs closed lower as
locals faded the funds who are holding sizable long positions.
Additional pressure came from light profit taking following Monday's
spike of the previous contract high. At the same time, cash and pork
cut out values continue to climb due to adverse weather conditions
across the Midwest. Momentum indicators are overbought and diverging,
which is often a precursor to a top and trend change. Closes below
trendline support crossing near 57.40 are needed before this is
confirmed. February cattle posted a key reversal up as it surged to
new highs for the month amid higher boxed-beef prices and
expectations for $76-77 cash bids later this week. Additional support
came from aggressive buying from a believed to be large northwestern
U.S. cattle feeder. February cattle are poised to test long-term
resistance crossing at 77.92 possibly on Wednesday.

FOOD & FIBER markets were mixed on Tuesday. March coffee drifted
lower in choppy trading on Tuesday amidst a bearish weather forecast
for this weekend across Brazil. A short covering bounce ahead of the
close tempered some of today's losses leaving the door open for a
short covering bounce on Wednesday. March cocoa extended this week's
decline and spiked below November's low at 713 before a short
covering bounce tempered some of today's losses. Today's high-range
close leaves the door open for additional short covering on Wednesday
however, the door is open for a test of psychological support
crossing at 700. March sugar posted an inside day with a lower close
due to a lack of fresh news in the cash market. Momentum indicators
remain bearish signaling sideways to lower prices into the end of the
year are possible. If the decline resumes, 930 is the next target.
March cotton gapped down and closed sharply lower following today's
bearish supply and demand report. The USDA pegged U.S. production at
17.4 million bales down from last month's estimate of 17.51 million
bales. However, the USDA also raised world ending stocks from 35.10
to 35.69 million bales due to lower demand. Today's gap down and
close below the July/October uptrend line confirms a broad double top
has been posted. The door is open for additional weakness and a
possible test of October's low crossing at 63.75 later this winter.

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T O P   N E W S
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STOCKS

Japan Stocks Review: Nikkei up 0.7% on US stock prospects
http://news.ino.com/summary/?id=24055
Add2: US Equities Review: Nasdaq slides after recent rally; DJIA up
http://news.ino.com/summary/?id=24053
UK Stocks Review: FTSE-100 up 0.3% on progress in Glaxo merger
http://news.ino.com/summary/?id=24063

FOREX

US FX Review: Dollar/yen hits 11-day high on Japan econ concerns
http://news.ino.com/summary/?id=24057
Asia FX Review: Majors quiet; dollar/yen pulls back on Japan sales
http://news.ino.com/summary/?id=24054
Europe FX Review: Dollar/yen surges pre-tankan, euro fades
http://news.ino.com/summary/?id=24056

CREDIT

US Credit Review: Bonds gain slightly, still wait for ruling
http://news.ino.com/summary/?id=24052
Europe Credit Review: Debt lower as inflation worries dominate
http://news.ino.com/summary/?id=24059
Japan Credit Review: March range-bounded ahead of BOJ tankan Wed
http://news.ino.com/summary/?id=24062

COMMODITIES

US Futures Summary: Natural gas takes off what it put on
http://news.ino.com/summary/?id=24061
Japan Commodity Summary: Japan's Tokyo, Yokohama agricultural commodities 
futures prices
http://news.ino.com/summary/?id=24058
CRB Outlook: Seen trending higher with firm grains, metals
http://news.ino.com/summary/?id=24060

EXCHANGES

NYMEX To Increase Natural Gas Margins
http://news.ino.com/press/index.cgi?release=23017
CME Indexes Break More Open Interest Records
http://news.ino.com/press/index.cgi?release=23016
Pacific Exchange to Trade Eleven New Options
http://news.ino.com/press/index.cgi?release=23015
Pacific Exchange Announces Revised Trading Date for Two Options
http://news.ino.com/press/index.cgi?release=23014
CME Christmas And New Year's Trading Schedule
http://news.ino.com/press/index.cgi?release=23012
EuroNext Paris 2001 Calendar
http://news.ino.com/press/index.cgi?release=23011
OM Stockholm Exchange Changes Rules For Attract 40
http://news.ino.com/press/index.cgi?release=23010
Montreal Switches BAX And OBX To Electronic Platform
http://news.ino.com/press/index.cgi?release=23009
U.S. And Russian Commodity Regulators Sign Joint Statement
http://news.ino.com/press/index.cgi?release=23008
Nasdaq Appoints David P. Warren Chief Administrative Officer
http://news.ino.com/press/index.cgi?release=23007

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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

AGZ1   Silver 1,000 oz. Dec 2001                   5.100     0.080  +1.59
ZDZ0   Dow Jones Industrial Avg. Dec 2000          10887       152  +1.42
PAZ0   Palladium Dec 2000                         931.15     12.10  +1.40
XHG2   Lean Hogs Feb 2002                          49.75      0.65  +1.34
LHG2   Lean Hogs Feb 2002                         49.750     0.650  +1.33
DBU1   Butter Sep 2001                           122.000     1.475  +1.24
XWZ0   Wheat Dec 2000                                258         3  +1.16
XEZ0   Soybean Meal Dec 2000                       193.4         2  +1.05
DAG1   BFP Milk Feb 2001                            9.65      0.10  +1.04
SMZ0   Soybean Meal Dec 2000                       193.4         2  +1.04

LOSERS

NGJ1   Henry Hub Natural Gas Apr 2001              5.433    -0.507  -8.67
NDZ0   NASDAQ 100 Index Dec 2000                 2865.00   -112.00  -4.11
MDZ0   S&P Midcap 400 Dec 2000                    517.00    -16.75  -3.32
TKY0   PSE Tech 100 Cash                          909.61    -29.72  -3.16
GIZ0   Goldman Sachs Commodity Index Dec 2000     248.50     -7.55  -3.07
PNJ1   Propane Apr 2001                           0.5310   -0.0150  -2.78
CTH1   Cotton Mar 2001                             65.59     -1.80  -2.67
CCZ0   Cocoa Dec 2000                                674       -17  -2.44
RLZ0   Russell 2000 Index Dec 2000                477.50    -11.05  -2.33
PBQ1   Frozen Pork Bellies Aug 2001               71.000    -1.500  -2.29
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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

VLCT   VALICERT INC                              8 10/32   2 25/32  +51.15
CLEC   US LEC CORP'A'                            5 10/32   1 17/32  +38.28
LDIG   LIBERTY DIGITAL INC CL A                        7     1 5/8  +30.23
BOB    MERRILL LYN 7.875%'STRYPES'                    13   2 30/32  +29.19
MSCA   M.S. CARRIERS                              28 1/2   5 30/32  +26.39
USPH   U.S. PHYSICAL THERAPY                          20   4 15/32  +24.16
EQIX   EQUINIX INC                                 6 5/8     1 1/4  +22.73
CBR    CIBER INC                                   6 1/2    1 6/32  +22.35
ISLD   DIGITAL ISLAND INC                        6 17/32    1 5/32  +21.51
IBAS   IBASIS INC                                6 22/32         1  +21.43

LOSERS

MAXMW  MAXIM PHARMACEUTICALS WTS 2001              9 3/4       -12  -55.81
MAXM   MAXIM PHARMACEUTICALS INC                  16 3/4 -13 10/32  -44.28
PEGS   PEGASUS SOLUTIONS INC                     7 10/32  -4 26/32  -40.10
ATSN   ARTESYN TECHNOLOGIES                       29 1/2       -13  -30.23
IBC    INTERSTATE BAKERIES                        10 7/8  -3 14/32  -23.91
DS     DALLAS SEMICONDUCTOR                           26        -8  -23.53
INGN   INTROGEN THERAPEUTICS                           6    -1 3/4  -22.58
SIVB   SILICON VALLEY BANCSHRS                    34 3/4    -9 7/8  -22.19
TQNT   TRIQUINT SEMICONDUCTOR                   49 10/32 -12 10/32  -20.04
AVCT   AVOCENT CORP                               42 7/8   -10 1/2  -19.63

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