F R I D A Y   E X T R E M E   M A R K E T S
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Friday: The CRB Index is falling 0.98 points to 213.90. The
US Dollar Index moved higher by 0.51 points to 116.88.

The Dow Industrials trended lower by 89.13 points, at 10821.31, while
the S&P 500 trended lower by 9.51 points, last seen at 1245.67. The
Nasdaq Composite softened 21.43 points to 2107.43.

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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 Friday as investors continue to mark
time ahead of next Tuesday's FOMC meeting. Light pressure came from
today's retail sales report that came in above consensus along with
an unexpected rebound in consumer sentiment. Both markets are likely
to remain range bound for the time being. It will take closes above
last week's highs or below the late-April reaction lows to clear up
near-term direction in these markets.

The Dow closed lower on Friday and below this spring's uptrend line
due to light profit taking ahead of the weekend and next week's FOMC
meeting. The latest economic data suggests that any further cuts in
interest rates by the Fed next week might be their last for the time
being. The Dow has become extremely overbought and overdue for a
correction. Closes below last week's low crossing at 10,673.20 would
signal that a larger-degree decline might be unfolding this spring.

INTEREST RATES June bonds plunged to new lows for the year following
the release of the University of Michigan's May consumer sentiment
that came in at 92.6 verses 88.4 in April. Additional pressure came
from April's retail sales data, which came in above pre- report
estimates. Odds of a 50-basis-point cut in interest rates next
Tuesday are now estimated at 73% verses 83% last Friday. Today's
breakout below the 50% retracement level of the 2000-01 rally
crossing at 99- 30 opened the door for a likely test of the 62%
retracement level crossing at 98-07 later this month. Short-term
momentum indicators have turned bearish signaling that additional
weakness is possible.

The CRB INDEX closed out the week near session lows as it extended
its decline off last Friday's high. This week's breakout below
April's uptrend line along with a downturn by a number of momentum
indicators confirmed that last week's high marked a double top while
opening the door for sideways to lower prices for the last half of
May. Weakness in grains, meats, precious metals, some foods and
energies weighed on the CRB today.

ENERGY MARKETS closed mostly lower on Friday due to profit taking
ahead of the weekend. Today's sell off in the product markets was
triggered by rumors that President Bush will take early action to
provide relief from higher energy prices. Additional pressure came
from talk that other states will follow California and attempt to opt
out of the reformulated gasoline program.

June crude oil posted a quiet inside day with a slightly higher close
on Friday as it consolidated some of this week's gains. However, June
crude remains range bound leaving the door open for two-sided action.
Momentum indicators are neutral to bullish signaling that sideways to
higher prices near-term are possible. However, it will take closes
above 30.13 or below 26.75 to clear up near-term direction in the
market.

June heating oil closed lower on Friday due to profit taking
following Thursday's test of minor resistance crossing at 77.80.
Closes above this resistance level or below 73.10 are needed to
confirm a breakout of a three-week old trading range. Momentum
indicators are neutral to bullish hinting that sideways to higher
prices near-term are possible.

June unleaded gas closed sharply lower on Friday following rumors
that President Bush will take action to provide relief from high
gasoline prices. Friday's setback led to a test of this spring's
uptrend line crossing near 105.10. Multiple closes below the uptrend
line and last week's low crossing at 101.90 would confirm a top and
trendline breakout. Momentum indicators have been showing bearish
divergence, which is often a precursor to a top and trend change.

June Henry Hub natural gas posted a downside reversal on Friday
thereby ending Thursday's short covering bounce. Additional weakness
on Monday is needed to confirm today's bearish reversal pattern as
the door remains open for a 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 Friday thereby confirming
Thursday's key reversal up. Momentum indicators are bullish signaling
that additional gains are possible next week. If this month's rally
continues, this spring's double top crossing at 117.89 is June's next
target.

The June Swiss Franc and D-mark closed out the week at or near
session lows against the Dollar following the release of the latest
U.S. economic data. Both markets are poised to test their April lows,
which mark key support levels. Closes below these lows would confirm
a downside breakout of this spring's trading range while renewing the
larger-degree downtrends. Momentum indicators remain bearish
signaling that additional weakness near-term appears likely.

The June Canadian Dollar closed sharply lower on Friday after forming
a small bear flag earlier in the week. Today's resumption of the
decline off last Friday's high sets the stage for additional weakness
during the last half of May with April's conservative uptrend line
crossing near .6414 being the next likely downside target. Momentum
indicators remain bearish signaling that additional weakness
near-term is possible.

The June Japanese Yen closed steady on Friday in two- sided trading
as it consolidated some of this week's losses. Session lows fell just
short of testing April's uptrend line, which crosses near .8166.
Multiple closes below this support level would open the door for
sideways to lower prices during the last half of May. Momentum
indicators have turned bearish and warn traders that additional
weakness near-term is possible.

PRECIOUS METALS June gold closed lower on Friday as it extended
Thursday's setback due to light profit taking ahead of the weekend.
Nevertheless, this week's upside breakout of the 2000-01 downtrend
line has confirmed that a major bottom and trend change has taken
place. Momentum indicators remain bullish signaling that sideways to
higher prices near-term are possible. If this spring's rally
continues, March's high crossing at 276.20 is June's next upside
objective.

July silver posted an inside day with a lower close as it
consolidates above 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. However, momentum indicators are
oversold warning bears to use caution as a short-term bottom might be
in or near. Closes above this week's high at 4.425 are needed before
a low can be confirmed.

July copper posted an inside day with a higher close due to light
short covering following Thursday's test of April's low crossing at
75.60. Multiple closes below this support level are needed to confirm
a breakout and resumption of this spring's decline. If a breakout is
confirmed, weekly support crossing at 74.10 is July's next target.
Momentum indicators are bearish signaling that additional weakness
near-term is possible.

GRAINS July corn closed out the week on a low note and near session
lows due to spillover selling following Thursday's bearish
supply/demand report. This week's breakout below key weekly support
crossing at 2.02 has both renewed this year's decline and set the
stage for the next level of weekly support crossing at 1.91 1/2 later
this month. Today's losses were limited, as traders were cautious
ahead of Monday's planting progress report and this afternoon's
extended weather forecasts. Planting delays continue plague farmers
in the western Corn Belt while dry parts of the eastern Corn Belt
received some rains during the week. I would not be surprised to see
a short covering bounce on Monday however, the bearish tone that has
engulfed the corn market will continue to limit upside potential
near-term.

July wheat closed higher on Friday as the smaller- than-expected U.S.
winter wheat crop and all-wheat production forecasts from Thursday's
supply/demand report continues to underpin the market. Gains were
limited due to weakness in the corn market. Traders will be closely
watching Monday's planting progress and crop conditions reports for
near-term direction. Closes above broken trendline support crossing
near 2.72 would temper the bearish outlook in July wheat while
increasing the odds that this week's lows marked a double bottom.

SOYBEAN COMPLEX July soybeans closed fractionally higher on Friday
due to light short covering ahead of the weekend. However, Thursday's
bearish supply/demand report and corn planting delays in the western
Corn Belt continue to limit upside potential. Momentum indicators
have become overbought and are turning neutral to bearish signaling
that May's correction in time might have come to an end. I am looking
for sideways to lower soybean prices during the last half of May with
April's low being a possible target.

July soybean meal posted an inside day with a higher close on Friday
as it consolidated some of Thursday's losses. However, upside
potential remains limited in the face of bearish soybean
fundamentals. Momentum indicators have become overbought and are
turning neutral to bearish warning traders to use caution as this
spring's corrective rebound might have come to an end. Closes below
this week's low would likely trigger additional long-liquidation next
week.

LIVESTOCK June hogs closed steady on Friday, as gains were limited
due to sharp losses in bellies. Commercial buying prompted by strong
cash bids that were up $0.50 to $1.00 higher on the day supported
prices. Sluggish hog movement and inadequate packer inventories
continue to support the cash market, which has underpinned the
late-week rally. Technically, June hogs continue to rebound off the
2000-01 uptrend line, which is to be expected following April's sharp
decline. Until this support level is broken, this spring's setback is
nothing more than a correction within a bull market.

June cattle closed lower on Friday as it posted a downside reversal.
Session highs spiked above broken support crossing at 70.52.
Additional weakness on Monday is needed to confirm today's bearish
reversal pattern. If this spring's decline resumes, last September's
low at 69.72 then weekly support crossing at 69.25 are potential
targets. Both weekly and daily momentum indicators are bearish but
nearing their respective oversold zones hinting that an important low
might be near.

FOOD & FIBER July coffee posted a downside reversal on Friday erasing
Thursday's gains. Momentum indicators have become very overbought
warning traders to use caution as a short-term top might be in or
near. July's inability to fill March's gap at 70.25 underscores the
weak tone of the market. Closes below Thursday's low at 66.25 would
confirm that this spring's short covering bounce has likely come to
an end.

July cocoa posted a huge key reversal down on Friday due to profit
taking that erased much of this week's gains. Additional weakness on
Monday is needed to confirm today's bearish reversal pattern. From a
broader perspective, July cocoa needs to close above 1103 or below
955 to confirm a breakout of this spring's trading range.

July sugar closed modestly higher on Friday as it continues to form a
small symmetrical triangle. A breakout in either direction of this
consolidation formation will point the direction of the next trending
move. If this spring's rally resumes, January's high at 941 is July's
next target. Closes below this week's low at 890 would increase the
odds that a short-term top has likely been posted.

July cotton posted a key reversal up on Friday due to short covering
ahead of the weekend. Nevertheless, Friday's high did nothing more
than test broken support crossing at 45.50. Multiple closes above
this broken support level are needed to temper the bearish outlook in
the market. If this spring's decline continues, psychological support
crossing at 40 cents is July's next downside target later this month.

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T O P   N E W S
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STOCKS

Japan Stocks: Nikkei climbs 0.19% for first gain in 4 days
   http://news.ino.com/summary/?id=25464
Add1:US Equities Review: Down on perception next rate cut may be last
   http://news.ino.com/summary/?id=25471
UK Stocks Review: FTSE lower in uninspiring end to the week
   http://news.ino.com/summary/?id=25470

FOREX

US FX Review: Euro extends losses on strong US data, ECB rate cut
   http://news.ino.com/summary/?id=25466
Asia FX Review: Yen in tight range amid lack of stock price moves
   http://news.ino.com/summary/?id=25463
Europe FX Review: Euro extends recent losses against dollar
   http://news.ino.com/summary/?id=25465

CREDIT

US Credit Review: Plummets on reduced rate cut expectations
   http://news.ino.com/summary/?id=25461
Europe Credit Review: Curve steepens sharply on surprise ECB cut
   http://news.ino.com/summary/?id=25467
Japan Credit Review: June up on strong medium-term cash bonds
   http://news.ino.com/summary/?id=25469

COMMODITIES

US Futures Summary: Gasoline traders worry about federal action
   http://news.ino.com/summary/?id=25468

EXCHANGES

SGX Announces 3rd Quarter Results
   http://news.ino.com/press/?release=24444
NYMEX To Amend Post-Close Trading Rules
   http://news.ino.com/press/?release=24443
NYBOT Changes Index Trading Hours
   http://news.ino.com/press/?release=24442
Record April For IPE
   http://news.ino.com/press/?release=24441
HKEx Sign MOU With The Stock Exchange Of Thailand
   http://news.ino.com/press/?release=24440
CBOT/MIDAM Memorial Day Holiday Trading Schedule
   http://news.ino.com/press/?release=24439
Last Trading Day Changed For Kansas Wheat Options
   http://news.ino.com/press/?release=24438
Gerstenschlager Takes Over As Chairman Of Germany's EEX
   http://news.ino.com/press/?release=24437

____________________________________________________________________________

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

ZM1    U.S. Treasury 6% Bond Jun 2001          103 184/256   4 17/32  +4.57
LBU1   Random Length Lumber Sep 2001              303.70      9.70  +3.30
SMK1   Soybean Meal May 2001                       163.6       4.7  +2.96
SIN3   Silver Jul 2003                             4.604     0.088  +1.91
YM1    U.S. Treasury 6% 10yr Note Jun 2001     104 184/256     1 3/4  +1.70
XEK1   Soybean Meal May 2001                       161.3       2.4  +1.51
XSK1   Soybeans May 2001                             450     5 1/2  +1.23
XWN1   Wheat Jul 2001                            271 1/4     3 1/4  +1.21
KWN1   Wheat Jul 2001                                331     3 3/4  +1.15
WN1    Wheat Jul 2001                            271 1/4     2 3/4  +1.02

LOSERS

PBG2   Frozen Pork Bellies Feb 2002               67.250    -2.950  -4.20
CCZ1   Cocoa Dec 2001                               1014       -34  -3.24
HUN1   New York Harbor Unleaded Gasoline Jul 20    0.9719   -0.0291  -2.90
LHJ2   Lean Hogs Apr 2002                         51.175    -1.250  -2.39
PNZ1   Propane Dec 2001                           0.5350   -0.0125  -2.30
XHV1   Lean Hogs Oct 2001                          52.57     -1.20  -2.25
BDU1   Oriented Strand Board Sep 2001             225.00     -5.00  -2.17
DBK1   Butter May 2001                           185.000    -4.000  -2.12
USZ1   U.S. Treasury Bond Dec 2001              97 30/32  -1 27/32  -1.85
RRN1   Rough Rice Jul 2001                         5.610    -0.100  -1.75
____________________________________________________________________________

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

RSTA   ROSETTA INPHARMATICS                        17.34      7.41  +74.77
UCOR   UROCOR INC                                  15.39      3.18  +26.28
DYAX   Dyax Corp                                    9.90      2.00  +25.38
PENX   PENFORD CORP                                13.35      2.42  +22.62
GISX   GLOBAL IMAGING SYS                           7.40      1.30  +21.85
PMSI   PRIME MEDICAL SERVICES                       6.88      1.16  +20.17
SQNM   SEQUENOM INC                                16.00      2.64  +19.70
NNBR   NN INC                                       8.79      1.40  +18.92
GIII   G-III APPAREL GROUP                          9.35      1.43  +18.38
NATR   NATURE'S SUNSHINE PROD                      10.18      1.47  +16.37

LOSERS

FLCG   FRONTLINE CAP GRP                            5.85     -2.83  -32.57
MAXC   MAXCO INC                                    7.50     -1.43  -19.07
WJCI   WJ COMMUNICATIONS                            8.15     -1.70  -17.91
CWON   CHOICE ONE COMMUNIC                          6.59     -1.43  -17.83
PGTV   PEGASUS COMMUNICATIONS'A'                   21.90     -4.23  -16.22
RBAK   REDBACK NETWORKS INC                        16.40     -3.10  -15.90
ARBA   ARIBA INC                                    6.90     -1.24  -15.21
TWDE   DECS TRUST V 2002                           18.00     -3.16  -14.87
QLTI   QLT INC                                     20.25     -3.51  -14.74
INGN   Introgen Therapeutics                        6.13     -1.05  -14.66

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