W E D N E S D A Y   E X T R E M E   M A R K E T S
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Wednesday: The CRB Index has climbed 0.05 points to 214.98. The
US Dollar Index moved down 0.31 points to 116.17.

The Dow Industrials moved up 399.10 points, at 10615.83, while
the S&P 500 rose 46.63 points, last seen at 1238.16. The
Nasdaq Composite edged higher by 156.22 points to 2079.44.

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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 soared to new highs for the month following this
morning's surprise move by the Federal Reserve to cut interest rates
by 50-basis points to 4.50%. The Nasdaq rallied over 9% as the news
ignited a buying frenzy. Traders shifted their focus following the
announced rate cut to the positive aspects of quarterly profit
statements. Technically, both the Nasdaq and S&P index gapped higher
on the open thereby confirming upside breakouts of this year's
downtrend lines. This week's gains have turned weekly momentum
indicators bullish signaling sideways to higher prices are possible
this spring. The Dow also soared to a new high for the month
following this morning's unexpected interest rate cut that caught the
market off guard. The Dow was up over 460 points during the session
and traded above trading range support crossing at 10,292.30 and the
February/March downtrend line crossing near 10,600. While a round of
profit taking is possible ahead of the weekend, today's strong
performance as set the stage for additional gains this spring.

INTEREST RATES June bonds posted a key reversal up on Wednesday
following today's surprise cut in interest rates. Traders quickly
began to speculate on the size of the next rate cut, which traders
seem to think will be another 50- basis points at the May 15 FOMC
meeting. Additional strength on Thursday would confirm today's
reversal pattern thereby signaling that a short-term bottom has been
posted. Stochastics and the RSI are very oversold and turning neutral
to bullish with today's rebound hinting that a low is in or near.

The CRB INDEX closed slightly higher on Wednesday but near session
highs following a late session rally in soybeans and copper.
Nevertheless, today's close below this month's uptrend line is a
clear warning to traders to use caution as a short-term top may be in
place. Closes above 216.40 are needed to keep this month's rally
alive.

ENERGY MARKETS were mixed on Wednesday following Tuesday's bearish
API inventory data for crude oil. The latest API data showed that
crude oil inventories have risen to 315.2 million barrels, the
highest level since August 24, 1999. Today's sell off led to a
breakout below April's uptrend line thereby increasing the odds that
June crude oil might have posted a short-term top. A short covering
bounce ahead of the close tempered some of today's losses leaving the
door open for sideways trading on Thursday. Stochastics and RSI are
overbought but remain bullish. June heating oil gapped down and
closed lower on Wednesday due to spillover weakness from crude oil
and the lower than expected decline in distillate inventories on
Tuesday's API reports. Today's sell off turned a number of short-term
momentum indicators that have become overbought neutral to bearish
signaling that a short-term top has likely been posted. Today's mid-
range close leaves the door open for sideways trading on Thursday.
June unleaded gas soared to new contract highs in afternoon trading
due to ongoing concerns over summer gasoline supplies. Session highs
fell short of testing weekly resistance crossing at 103.50. The
rising ADX (a trend-following indicator) is bullish and suggests that
additional strength into early-May is possible. June Henry Hub
natural gas extended Tuesday's loss following the latest AGA report
that showed natural gas inventories rose by 64 billion cubic feet
last week. This increase in inventory was higher than traders had
expected and eased concerns over summer natural gas supplies. A short
covering bounce ahead of the close tempered some of today's losses
leaving the door open for sideways trading on Thursday.

CURRENCIES The June Dollar posted a key reversal down after session
highs fell short of testing this month's high crossing at 117.89.
Today's inter-meeting interest rate cut by the Federal Reserve failed
to attract following through buying in the afternoon session.
Additional weakness on Thursday would confirm today's bearish
reversal pattern thereby increasing the chances that a double top has
likely been posted. The June Swiss Franc and D-mark closed higher on
Wednesday due to late-session short covering rallies. Early weakness
pushed the Swiss Franc toward last fall's lows however, selling dried
up near minor support crossing at .5635. Additional strength on
Thursday would confirm today's spindle bottoms and would set the
stage for additional short covering into early-May. The June Canadian
Dollar closed lower on Wednesday but near session highs due to a
short covering bounce ahead of the close. The late session bounce
could spillover into Thursday's session however, momentum indicators
are turning neutral to bearish warning traders that last week's high
might have marked a double top. Look for sideways to lower trading
into the end of April. The June Japanese Yen closed above last week's
high crossing at .8205 to confirm the recent trendline breakout and
open the door for a test of the late-March high crossing at .8327.
Stochastics and RSI are bullish signaling sideways to higher prices
into early-May are possible.

PRECIOUS METALS June gold managed to close modestly higher due to a
short-covering bounce ahead of the close. Momentum indicators remain
bullish signaling that additional gains near-term are still possible
if June can clear resistance crossing at 265.50. Closes below April's
uptrend line crossing near 259 would signal an end to this month's
corrective bounce. July silver extended Tuesday's loss but like June
gold managed to close near session highs due to a short covering
bounce ahead of the close. Nevertheless, this week's setback suggests
that July silver will continue to extend this spring's trading range
into early-May. Closes above 4.505 or below 4.31 are needed to
confirm a trading range breakout. July copper soared to new highs for
the month due to today's strong performance in the equity markets.
Prospects for an improving economy due to the latest interest rate
cut underpinned today's rally in July copper and confirmed the recent
trendline breakout. The stage is set for additional gains with the
late-March reaction high crossing at 80.15 marking the next upside
objective.

GRAINS May corn closed fractionally lower on Wednesday amidst
conflicting planting ideas. The latest weather forecast are calling
for additional precip across the Midwest, which could delay
fieldwork. However, the latest planting progress report shows that
corn planting thus far has progressed at an average pace. This week's
setback has turned a number of momentum indicators neutral to bearish
hinting that Monday's high might have marked a double top. Traders
will be looking at Thursday's export sales report for near-term
direction. However, bulls are not holding out much hope for a bullish
sales report on Thursday. It appears that May corn will remain range
bound between 2.15 and 2.02 1/2 for the time being until the market
can get a better handle on planting progress and early growing
conditions. May wheat posted an upside reversal on Wednesday as
spring wheat planting delays offered mild support to the market.
Additional support came from this year's winter wheat crop ratings,
which remain well below last year's levels. Gains were limited as
export demand remains quiet. Technically, momentum indicators remain
bullish signaling that sideways to higher prices into early-May are
possible.

SOYBEAN COMPLEX May soybeans posted a key reversal up on Wednesday
due to light fund buying and a tight cash market. May opened under
pressure following weakness in overnight trading and posted a new
contract low before a short covering bounce unfolded. Light support
came from the latest weather forecast, which have taken some of the
rain out of next week's outlook. May beans are at an important
crossroads. Closes above 4.44 or below 4.26 1/2 are needed to clear
up near-term direction in the market. July soybean meal also posted a
key reversal up on Wednesday due to spillover strength from soybeans.
Additional gains on Thursday are needed to confirm today's bullish
reversal pattern. Momentum indicators remain neutral to bearish
warning traders to use caution as closes above last week's high
crossing at 154 are needed to renew the rally off the late-March low.

LIVESTOCK June hogs closed sharply lower on Wednesday due to profit
taking and spillover weakness from bellies. Weakness in the product
market also weighed on prices. Losses were limited due to mostly
steady cash bids as traders began to position themselves ahead of
Friday's cold storage report. Today's low-range close leaves the door
open for sideways to lower prices on Thursday. Momentum indicators
are diverging and turning neutral to bearish warning traders that an
important top may be in or near. June cattle settled lower on
Wednesday due to rumors of cash bids of $77, which is down $2.00 from
last week. Feedlot sources confirmed those rumors after the close,
which sets the stage for a softer opening on Thursday. June cattle
have spent the past three sessions consolidating above this year's
shallow uptrend line crossing near 71.77. Multiple closes below this
support level would renew the decline off March's high and open the
door for a possible test of this year's low crossing at 70.52 later
this spring. Stochastics and RSI are bearish signaling sideways to
lower prices near-term are possible.

FOOD & FIBER July coffee closed sharply higher on Wednesday due to
short covering. Today's high-range close leaves the door open for
additional gains on Thursday. However, upside potential appears
limited ahead of the upcoming Brazilian harvest. July cocoa closed
slightly lower on Wednesday as it consolidates around the 50%
retracement level of this winter's rally crossing at 985. While
momentum indicators remain bearish they are also diverging, which is
a warning to bears not to press their hand at this time as a double
bottom might have been posted with this week's low. Closes above 1020
are needed to temper the near-term bearish outlook in the market.
July sugar closed lower on Wednesday filling Monday's gap at 800. A
late session rebound tempered some of today's losses leaving July
above this winter's downtrend line. Momentum indicators remain
bullish however, closes above last week's high at 821 are needed to
open the door for a larger-degree rebound this spring. July cotton
posted a downside reversal on Wednesday after early strength due to
short covering lead to a jab above minor resistance crossing at
48.90. However, July failed to attract follow- through buying on
today's move to new highs as funds want to look at Thursday's export
sales report before deciding weather or not to exit their short
positions. Momentum indicators are very oversold warning bears not to
press their hand at this time.

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T O P   N E W S
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STOCKS

Japan Stocks Review: Nikkei up 4.4% on Intel earnings, US gains
http://news.ino.com/summary/?id=25125
Add2: US Equities Review: Stocks surge on surprise rate cut
http://news.ino.com/summary/?id=25123
UK Stocks Review: FTSE doubles up after Fed inter-meeting cut
http://news.ino.com/summary/?id=25130

FOREX

US FX Review: Shock Fed rate cuts vault European currencies
http://news.ino.com/summary/?id=25127
Asia FX Review: USD/JPY mixed in two way trading
http://news.ino.com/summary/?id=25124
Europe FX Review: Dollar forges higher, but yen outperforms
http://news.ino.com/summary/?id=25126

CREDIT

US Credit Review: Substantial gains, buoyed by Fed rate cut
http://news.ino.com/summary/?id=25122
Europe Credit Review: Bonds mirror equities on up-and-down day
http://news.ino.com/summary/?id=25128
Japan Credit Review: Jun falls on stock gains, oversupply fears
http://news.ino.com/summary/?id=25129

COMMODITIES

US Futures Summary: Natural gas backtracks; palladium, cotton up
http://news.ino.com/summary/?id=25131

EXCHANGES

E-mini Nasdaq-100 Futures Post New Volume Record
http://news.ino.com/press/?release=23504

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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

NDM1   NASDAQ 100 Index Jun 2001                 1842.00    167.00  +9.99
NKH2   Nikkei 225 Stock Avg Mar 2002               14055      1000  +7.66
SGM1   S&P 500/BARRA Growth Index Jun 2001        615.00     30.00  +5.13
KCN1   Coffee 'C' Jul 2001                         61.75      2.75  +4.66
ZDM1   Dow Jones Industrial Avg. Jun 2001          10720       475  +4.64
RM1    Russell 1000 Index Jun 2001                655.00     26.75  +4.26
SPM1   S&P 500 Jun 2001                          1245.00     50.70  +4.24
DJM1   Dow Jones Industrial Avg. Jun 2001          10665       420  +4.10
MDM1   S&P Midcap 400 Jun 2001                    496.50     19.00  +3.98
LBK1   Random Length Lumber May 2001              270.70      9.60  +3.68

LOSERS

PAM1   Palladium Jun 2001                         737.00    -26.50  -3.47
PBQ1   Frozen Pork Bellies Aug 2001               85.450    -3.000  -3.39
PNN1   Propane Jul 2001                           0.5575   -0.0175  -3.08
CCH2   Cocoa Mar 2002                               1030       -29  -2.80
HOU1   Heating Oil Sep 2001                       0.7715   -0.0201  -2.58
SBK2   Sugar #11 World May 2002                     7.50     -0.15  -1.99
XHM1   Lean Hogs Jun 2001                          71.52     -1.42  -1.95
NGM1   Henry Hub Natural Gas Jun 2001              5.193    -0.093  -1.75
CTK1   Cotton May 2001                             46.16     -0.82  -1.75
LHM1   Lean Hogs Jun 2001                         71.525    -1.250  -1.72
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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

IOMT   ISOMET CORP                                  7.76      2.98  +49.67
KOPN   KOPIN CORP                                   7.42      2.38  +47.22
MM     MUTUAL RISK MANAGEMENT                       5.90      1.77  +44.58
IWOV   INTERWOVEN INC                              16.36      4.99  +43.89
PXLW   PIXELWORKS INC                              20.00      6.06  +43.19
MSLV   METASOLV INC                                12.52      3.56  +39.73
SBSE   SBS TECHNOLOGIES                            18.20      5.16  +39.57
SITE   SPECTRASITE HOLDINGS                         7.75      2.16  +39.06
ACTR   Acterna Corp                                 8.65      2.34  +38.61
PRCM   PROCOM TECHNOLOGY                            8.55      2.59  +36.95

LOSERS

CAE    CASCADE CORP                                 9.72     -3.41  -25.62
TESS   TESSCO TECHNOLOGIES                         12.05     -3.43  -23.02
OBIE   OBIE MEDIA CORP                              6.70     -1.78  -21.19
NUI    NUI CORP                                    22.40     -4.55  -16.88
GRKA   GREKA ENERGY                                11.50     -1.89  -14.55
CTAC   1-800 CONTACTS                              18.98     -3.07  -13.87
PPD    PRE-PAID LEGAL SVCS                         15.25     -2.31  -12.97
SFC    SFBC INTL                                    9.17     -1.33  -12.85
LVLT   LEVEL 3 COMMUNICATIONS                      13.06     -1.84  -12.35
DYII   DYNACQ INTL                                 16.65     -2.22  -11.89

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