M O N 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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Monday: The CRB Index has climbed 0.19 points to 191.59. The 
US Dollar Index trended higher 0.90 points to 117.88.

The Dow Industrials moved higher by 0.00 points, at 10035.34, while 
the S&P 500 edged lower 0.24 points, last seen at 1144.65. The 
Nasdaq Composite edged lower 1.35 points to 1944.48.
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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 Friday due to bargain hunting buying in
technology stocks. The NASDAQ closed higher on Friday as it continues
to consolidate 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 Friday due to light short
covering ahead of Christmas. Bulls remain encouraged by this week's
short covering 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 posted an inside day with a higher close on Friday due to
light bargain hunting buying ahead of the Christmas holiday weekend.
Gains were limited following a downward revision of the third quarter
GDP to -1.3% from the previous estimate of -1.1%. Additional pressure
came from weak consumer confidence data. Nevertheless, the Dow
remains poised to test the 62% retracement level of the May/September
decline crossing at 10,094.10 in the near future. 

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

March T-bonds closed lower on Friday due to light profit taking ahead
of the Christmas holiday. A downward revision in economic growth for
the third quarter along with weak consumer spending also provided
light pressure to the market. Nevertheless, March remained above this
fall's downtrend line, which leaves the door open for sideways to
higher prices possibly into early-January. Stochastics and the RSI
remain bullish signaling that sideways to higher prices are possible
near-term. Closes above last week's high crossing at 102-05 would
confirm this week's trendline breakout while opening the door for a
larger-degree rebound this winter. 

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

The CRB index closed higher on Friday due to strength in livestock,
precious metals, fiber, and energies. Stochastics and the RSI are
bullish signaling that sideways to higher prices are still possible
into the end of the year. Today's rally sets the stage for a possible
test of this month's high crossing at 193.39. Closes above 193.39 are
needed to renew the CRB's rally off October's low. 

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

The energy markets closed mostly higher on Friday with the exception
of heating oil. Trading volume was limited as many traders decided to
kick off the Christmas holiday early. Trading next week is likely to
be subdued ahead of next Friday's meeting among OPEC nations at which
time they will decide whether or not to proceed with their announced
cutback on crude oil production beginning January 1 in an attempt to
stabilize sagging energy prices. 

February crude oil posted an inside day with a higher close due to
light short covering on Friday as it consolidated some of Thursday's
losses. February has broken out above this fall's downtrend line
leaving it in position to test the early-December high crossing at
21.05 later this winter. Trading is likely to remain subdued ahead of
next week's OPEC meeting. 

February heating oil closed slightly lower on Friday thereby
confirming Thursday's key reversal down. I would not be surprised to
see sideways trading extend into the end of the year as traders await
OPEC's decision about production next Friday. Closes above this
week's high would open the door for a larger-degree rebound into
early-January with November's high crossing at 64.35 being a
potential target later this winter. 

February unleaded gas closed slightly higher due to light short
covering on Friday. This week's failed attempt to breakout the
early-December high of 57.62 has left a possible double top on the
daily chart. Closes above this resistance level would open the door
for a possible test of November's gap crossing at 59.80 later this
winter. Momentum indicators remain bullish signaling that sideways to
higher prices are possible into the end of the year.

February Henry Hub natural gas closed sharply higher on Friday as
extended weather forecasts are calling for the first major winter
storm of the winter to hit portions of the upper Midwest and move
eastward beginning this weekend. Today's high fell short of testing
last week's high crossing at 2.94. Closes above this resistance level
would confirm a breakout above this fall's downtrend line while
opening the door for a larger-degree rebound into January. 

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

The March Dollar closed sharply higher on Friday and posted a hew
high close for December. Short covering ahead of the Christmas
holiday triggered today's rally. Stochastics and the RSI are bullish
signaling that additional gains are possible. While a round of profit
taking is possible when trading resumes next week, the stage is set
for additional gains into early-January. I am looking for the March
Dollar to eventually try and test November's high crossing at 118.27
later this winter. 

The March Swiss Franc closed sharply lower on Friday thereby turning
short-term momentum indicators bearish signaling that a short-term
top has been posted. The nearly flat correction off November's low
was one of time instead of price and underscores the weak tone of the
market. While a short covering bounce is possible when trading
resumes next week, the stage is set for a possible test of this
fall's lows by early-January. 

The March Canadian Dollar closed lower on Friday and tested the 62%
retracement level of November's rally crossing at .6300. While a
short covering bounce is possible when trading resumes next week,
momentum indicators are bearish signaling that sideways to lower
prices are possible into early-January. If the decline continues, the
75% retracement level crossing at .6273 is March's next target. 

The March Japanese Yen plunged to new contract lows on Friday as it
fell to a new three-year low against the U.S. Dollar. The late-week
acceleration in this fall's decline leaves the market poised to
eventually test monthly fib support crossing at .7568 later this
winter. The daily ADX is bearish signaling that additional weakness
is possible. Closes above November?s downtrend line crossing near
.7970 are needed to confirm a bottom and trend change has taken
place.

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

February gold closed higher on Friday due to short covering triggered
by today's sharp rally in the U.S. Dollar. As long as February gold
remains above minor trendline support crossing near 276.50 the door
remains open for sideways to higher prices into early January with
November's high crossing at 283.30 being a potential target.
Stochastics and the RSI are holding onto their bullish positions
signaling that sideways to higher prices are possible into early-
January. 

March silver closed sharply higher on Thursday due in large part
year-end short covering. Nevertheless, today's rally led to a close
above the 50% retracement level crossing at 4.423 thereby renewing
its rally off November's low. While stochastics and the RSI are very
overbought, trend-following indicators such as the ADX are bullish
signaling that sideways to higher prices are possible into
early-January. 

March copper closed higher on Friday after testing the 50%
retracement level of November's rally crossing at 67.50. March's
inability to push below this support level triggered a short covering
rally into the close. However, additional strength next week with
closes above the reaction high crossing at 69.45 are needed to
confirm a bottom has been posted. Short-term momentum indicators are
oversold and turning neutral to 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 Friday falling just a 1/4-cent short of
testing the contract low posted in November. Closes below the
contract low at 2.10 1/4 would open the door for additional weakness
and a possible test of weekly support crossing at 2.04 1/4 later this
winter. Uncertainty over sales policies in Argentina and China along
with lagging U.S. export sales, which are running 11% behind last
year's sluggish pace continue to pressure the market. Today's sharp
rally in the U.S. Dollar along with an increase in cheaper feed-grade
wheat also pressured the market. Short-term momentum indicators are
bearish signaling that sideways to lower prices are possible into the
end of December. 

March wheat closed higher on Friday due to light short covering ahead
of the Christmas holiday. Light support came from expectations that
this week's huge U.S. wheat sale to China will be confirmed before
the end of the year. At the same time gains were limited due to ideas
that Argentina will soon devalue its currency and that wheat exports
will pick up significantly once this devaluation occurs. Since wheat
is on pace to meet USDA export sales, any further sales to China
could be extremely supportive to wheat prices as ending stocks will
be directly effected. It will take closes above the Nov./Dec.
downtrend line crossing near 2.95 to temper the bearish outlook in
the market. Until then look for choppy price action to continue. 

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

January soybeans closed steady on Friday in quiet pre- holiday type
trading. I do not see any major pickup in trading volume when traders
return from Christmas next week. While demand for U.S. beans remains
strong, near ideal growing condition in South America have bears
penciling in another record soybean crop. Uncertainty about
Argentina's political situation is also limiting near-term gains as
they are expected to devalue their currency in the near future. Once
this is done, they will likely become aggressive marketers of new
crop soybeans once they become available to the market. At the same
time, momentum indicators are oversold and turning neutral hinting
that a short-term bottom might be in or is near. Closes above
trendline resistance crossing near 4.41 are needed to confirm a
bottom is in place.

January soybean meal closed lower on Friday. Early strength led to a
spike above minor resistance crossing at 151.90. However, a lack of
follow-through buying triggered a sell off ahead of the close.
Nevertheless, short-term momentum indicators have turned bullish
signaling that sideways to higher prices are possible into
early-January. 

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

February hogs gapped up and closed sharply higher following
Thursday's friendly monthly cold storage report confirming Thursday's
upside reversal. Spillover support from sharply higher belly and
cattle prices also underpinned today's rally. Talk of steady cash
bids next week could support steady to higher prices on Monday
however, trading volume will be very thin leaving the door open for
volatile trading. Today's gap up may prove to be an upside breakaway
gap. While a setback is possible on Monday, the stage is set for a
test of November's high crossing at 55.35 later this winter. Momentum
indicators are higher signaling that additional gains are possible
into early-January. 

February cattle closed sharply higher on Friday due to short covering
ahead of this afternoon's cattle-on-feed report. The report was
called bullish for the April and June contracts because of the
less-than-expected placements. Today's new high close for the week
following by a friendly cattle-on-feed report sets the stage for a
possible test of November's high crossing at 71.35 later this winter.
Momentum indicators remain bullish signaling that sideways to higher
prices are possible into early-January. 

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

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. 

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. 

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 higher on Friday due to light short covering
ahead of the Christmas Holiday weekend. This week's setback has
turned stochastics and the RSI bearish again signaling that sideways
to lower prices are possible into the end of the year. Closes above
37.60 or below 34.91 are needed to clear up near-term direction in
the market. 

I want to wish each and every one of you a very Merry Christmas. Take
time to find and remember why we are celebrating Christmas. Ken
Seehusen 

Daily Extreme Commentary is brought to you by GLOBALcharts, 
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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

XCZ3   Corn Dec 2003                             250 1/4        20  +7.99
PBH2   Frozen Pork Bellies Mar 2002               78.125     3.000  +3.97
LBF2   Random Length Lumber Jan 2002              267.00     10.00  +3.89
AGM2   Silver 1,000 oz. Jun 2002                   4.660     0.160  +3.56
SSH2   British Pound/Swiss Franc Mar 2002         2.4325    0.0563  +2.38
LHG2   Lean Hogs Feb 2002                         55.775     1.250  +2.29
XHG2   Lean Hogs Feb 2002                          55.77      1.10  +2.01
RAH2   South African Rand Mar 2002              0.081675  0.001625  +2.00
FCF2   Feeder Cattle Jan 2002                     85.500     1.000  +1.18
RZH2   Euro/Swiss Franc Mar 2002                  1.4808    0.0168  +1.15

LOSERS

SFH2   Swiss Franc Mar 2002                      0.59000  -0.01430  -2.37
ECZ2   EuroFX Dec 2002                           0.86870  -0.01230  -1.40
EJH2   Euro/Japanese Yen Mar 2002                 112.85     -1.06  -0.93
NKM2   Nikkei 225 Stock Avg Jun 2002               10400       -75  -0.72
CDH2   Canadian Dollar Mar 2002                  0.62600  -0.00440  -0.70
GBH2   Euro/British Pound Mar 2002                0.6086   -0.0042  -0.68
ZRH2   U.S. Dollar/South African Rand Mar 2002   12.3440   -0.0760  -0.62
ZBM2   U.S. Treasury Bond Jun 2002              99 17/32    -18/32  -0.56
NDH2   NASDAQ 100 Index Mar 2002                 1585.00     -8.50  -0.53
XDM2   Canadian Dollar Jun 2002                   0.6263   -0.0031  -0.49

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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

NATR   NATURE'S SUNSHINE PROD                    11.5500    3.3000  +41.25
TONS   NOVAMERICAN STEEL INC                      5.0500    1.2000  +26.67
WLHN   WOLOHAN LUMBER                            21.0300    4.0000  +23.53
LENS   CONCORD CAMERA                             6.9000    1.1400  +19.79
SNIC   SONIC SOLUTIONS                            5.1000    0.6900  +16.05
ASE    AMER SCIENCE & ENGR                         20.75      2.75  +15.28
SYM    SYMS CORP                                    5.73      0.76  +15.20
INVN   INVISION TECHNOLOGIES                     32.7100    4.2000  +14.73
TIVO   TIVO INC                                   6.2000    0.7300  +13.35
DMRC   DIGIMARC CORP                             19.2400    2.2400  +13.18

LOSERS

WGRD   WATCHGUARD TECHNOLOGIES INC                6.9500   -3.1800  -31.21
ASW    A.C.L.N. LTD                                 7.79     -2.31  -22.87
PAR    COASTCAST CORP                               5.35     -1.00  -15.75
USAK   USA TRUCK                                  9.7000   -1.5000  -13.39
JHFT   JOHN HANCOCK FINL TRENDS FD               13.2500   -1.9493  -12.78
VITX   V.I. TECHNOLOGIES                          6.4000   -0.8600  -12.10
IIJI   INTERNET INITIATIVE JAPAN INC              6.3600   -0.7600  -11.09
TTMI   TTM TECHNOLOGIES                           9.2400   -1.1100  -10.64
RSYS   RADISYS CORP                              17.5500   -1.9700  -10.04
QVDX   QUOVADX INC                                9.5000   -0.9000  -8.61
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