F R I 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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Friday: The CRB Index is falling 1.84 points to 190.07. The
US Dollar Index moved lower 0.21 points to 117.64.

The Dow Industrials eased 77.36 points, at 9771.85, while
the S&P 500 declined 11.30 points, last seen at 1127.58. The
Nasdaq Composite eased 55.48 points to 1930.34.
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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 closed lower on Friday as disappointing earnings
reports from Microsoft and IBM pressured the technology sector.
Today's sell off by the NASDAQ led to a test of the 25% retracement
level of the rally off last September's low, which crosses at
1930.89. Closes below this support level and December's low would
open the door for a larger-degree setback during the last half of
January. Momentum indicators remain bearish signaling that sideways
to lower prices are possible near-term. The NASDAQ closed down 55.48
points at 1930.34. The March S&P 500 index also closed lower on
Friday but held above the 25% retracement level of the rally off
September's low crossing at 1122.57. Closes below this support level
and December's low at 1115 would open the door for a larger-degree
decline during the last half of January. The March S&P 500 closed
down 5.20 points at 1128.80.

The Dow posted an inside day with a lower close on Friday as it
consolidates above key fib support crossing at 9706.20. Light
pressure came from profit taking ahead of the three- day weekend.
Losses were limited following the release of better-than-expected
consumer confidence data. Next week's gross domestic product numbers
hold the keys to near-term direction in the market. Short-term
momentum indicators are bearish but nearing oversold levels hinting
that a low might be near if next week's data is neutral to positive.

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

March T-bonds closed sharply higher on Friday despite a sharp jump in
the University of Michigan's mid-month report on consumer sentiment
for January. The report came in at 94.2 compared with a pre-report
estimate of 89.8 and last month's 88.8. The Michigan report comes
amid a slew of reports that economists and policy makers say suggest
that the worst may be over for the U.S. economy. This lowers the
chances that the Fed will be willing to make additional cuts in
interest rates when it meets later this month. Today's rebound erased
most of Thursday's loss however March bonds remain below January's
broken uptrend line. March will need to close above this week's high
at 104-11 to renew its rally off December's low. If the rally
resumes, the 50% retracement level of last fall's decline crossing at
104-25 is a potential target. Until then, this week's trendline
breakout has opened the door for sideways to lower prices during the
last half of January. Momentum indicators are overbought signaling
that sideways to lower prices are possible during the latter part of
January.

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

The CRB index closed sharply lower for the second day in a row on
Friday due to weakness in grains, precious metals, food and fiber.
Today's decline confirmed a breakout below last fall's uptrend line
crossing near 191.15 and opens the door for sideways to lower prices
into the latter part of January. If the decline continues, December's
reaction low crossing at 187.73 is the CRB's next likely target.

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

The energy markets closed mixed on Friday. Early short covering gains
faded ahead of the close and the extended weekend. The fundamental
outlook remains bearish however, the prospects for tighter supplies
following the recent production cutback by OPEC continues to prevent
traders from aggressively betting on lower prices at this time.

March crude oil closed higher on Friday but near session lows as
early short covering gains faded ahead of the close. March remains
poised to test December's reaction low crossing at 18.45 possibly
next Tuesday. Stochastics and the RSI are bearish signaling that
additional weakness is possible near-term. I would not be surprised
to see March crude test November's low at 17.55 before buying returns
to the market.

March heating oil posted an inside day with a lower close thereby
confirming Thursday's key reversal down. March is consolidating above
last fall's low at 51.30. However, mild winter weather across high
demand regions of the country along with weak industrial demand
continues to weigh on prices leaving March vulnerable to a downside
breakout of this winter's trading range possibly next week. Closes
above Monday's high crossing at 54.70 would temper the near-term
bearish outlook in the market.

March unleaded gas posted an inside day with a slightly higher close
on Friday as it consolidates above last fall's uptrend line crossing
near 54.75. Closes below this support level would open the door for a
likely test of last fall's lows beginning at 53.00 and extending down
to 51.90. Stochastics and the RSI remain bearish signaling that
additional weakness is possible into the last half of January. Closes
above Monday's high at 58.70 would temper the near-term bearish
outlook in the market.

March Henry Hub natural gas closed lower on Friday thereby confirming
Thursday's key reversal down. Losses were tempered due to thin
pre-holiday trading volume and colder temps moving across the upper
Midwest this week. If the decline continues, last week's low at 2.155
is March's next target.

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

The March Dollar posted a downside reversal on Friday due to profit
taking ahead of the weekend after rallying for the past three trading
sessions. However, stochastics and the RSI remain bullish signaling
that a test of December's high crossing at 118.85 is possible later
this month. Today's low-range close leaves the door open for
additional weakness early next week with Tuesday's gap crossing at
117.75 being a possible target.

The March Swiss Franc closed modestly higher on Friday due to light
short covering as it consolidated some of Thursday's loss. March
continues to consolidate above last fall's trading range support
crossing at .5973. Multiple closes below this support level or above
neckline resistance crossing near .6067 are needed to clear up
near-term direction in the market.

The March Canadian Dollar posted an inside day with a slightly higher
close due to light short covering as it consolidated some of
Thursday's sharp losses as it plunged to new contract lows. I would
not be surprised to see another day or two of consolidation however,
this week's breakout into new lows has opened the door for sideways
to lower prices during the last half of January.

The March Japanese Yen closed lower on Friday spiking below long-term
support crossing at .7558 before a short covering rebound ahead of
the close tempered some of today's loss. Closes below .7558 would
renew the larger-degree downtrend while opening the door for a
possible test of monthly support crossing at .7210 later this winter.
Momentum indicators are poised to turn bearish with additional
weakness. Closes above last Monday's high at .7696 would confirm that
a short-term bottom has likely been posted.

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

February gold closed lower on Friday and is poised to test December's
uptrend line crossing near 281.40, which coincides with December's
high. Closes below this uptrend line would all but confirm that a
short-term top has been posted. Momentum indicators are overbought
and turning bearish signaling that a double top was likely posted on
Wednesday. I will take closes above 289.90 to renew February's rally
off December's low.

March silver closed sharply lower on Friday falling just short of
testing the 62% retracement level of November's rally crossing at
4.327. If the decline continues, fib support crossing at 4.221 is
March's next targets. Momentum indicators are bearish signaling that
sideways to lower prices are possible during the last half of
January.

March copper closed lower in lackluster trading on Friday as it
tested this week's low at 69.70. Closes above 72.40 or below 69.50
are needed to breakout of its current trading range thereby clearing
up near-term direction in the market. Momentum indicators are bullish
but nearing their respective overbought zones hinting that time might
be running out for bulls.

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

March corn closed lower on Friday after Sparks Commodities released
their corn acreage estimate for this year at 78.6 million acres up
3.7% from last year. The increased corn acreage projection trumped
early expectations for a short covering rebound ahead of the
three-day weekend. However, some analysts indicated that Spark's corn
acreage estimate may be 600,000 to 1 million acres too high as actual
acreage often falls below early planting estimates. Nevertheless,
March corn fell below last year's uptrend line leaving this week's
earlier breakout suspect for the time being. The market will need to
see increased export demand in the near future to limit the sell off
from Thursday's high. Near-term downside risk appears limited to a
test of minor support crossing at 2.10 1/4.

March wheat closed lower on Friday thereby confirming Thursday's
trendline breakout and key reversal down. The door is open for
additional weakness and a likely test of December's uptrend line
crossing near 2.91 later this month. Stochastics and the RSI are
bearish signaling that sideways to lower prices are possible now that
this winter's technical rally has ended. Weak export demand will
continue to pressure the market during the last half of January.

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

March soybeans closed lower for the second day in a row on Friday,
which led to a test of January's steep uptrend line crossing near
session lows. Profit taking ahead of the weekend was triggered by
uncertainty over South American weather, questions over Chinese
demand ahead of March 20th and spillover weakness from meal. Momentum
indicators have become overbought warning traders that a round of
long- liquidation to consolidate some of this month's gains might
unfold into the latter part of January. March's inability to test
November's high at 4.57 1/2 was noted by bears as they tied this fact
with the idea that underlying support for the market has weakened
this week. I am looking for a breakout below January's uptrend line
early next week and a likely setback to the 4.30 area in the near
future.

March soybean meal closed sharply lower due to profit taking ahead of
the weekend on Friday following Thursday's test of the 62%
retracement level of the July/January decline, which crosses at 163.
Today's sell off turned a number of momentum indicators, which have
become overbought neutral to bearish warning traders of a possible
sell off into the end of January. Initial support begins at 154.80.
If this support level is exceeded, the gap at 147.90 is a possible
target later this month.

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

April hogs closed higher on Friday amidst spread and fund related
buying. Additional support came from higher cash bids and dramatic
improvement in pork product values. Expectations for higher cash bids
early next week should support steady to firmer futures prices as
April closed above key weekly resistance crossing at 61.13. If the
rally continues, weekly resistance crossing at 63.60 is April's next
target. This afternoon's cold storage for bellies came in at 44.187
million pounds. Closes below the December- January uptrend line and
Monday's low crossing at 60.15 are needed to confirm a top has likely
been posted.

April cattle closed higher on Friday due to short covering ahead of
this afternoon's monthly cattle-on-feed report. The report showed On
Feed as of January 1 9.910 million head 98% of year ago levels.
Placements for December came in at 1.330 million head 92% of year ago
levels and Marketings for December came in at 1.545 million head 103%
of year ago levels. Traders called the report positive. The marketing
number is slightly better than expectations. The large trade volume
last wee suggests that the market is making good progress toward
cleaning up front-end supplies. The report should be positive for the
nearby contracts when trading resumes on Tuesday. Technically, April
cattle closed just below the 62% retracement level of last year's
decline crossing at 74.34. Closes above this week's high at 74.87 are
needed to renew April's rally off November's low and set the stage
for a test of October's high at 75.45 later this winter.

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

March coffee closed sharply lower on Friday due to aggressive fund
selling ahead of the three-day weekend. Unless the near ideal weather
pattern in Brazil shifts and or there is a major surprise over the
size of Vietnam's crop, coffee prices are likely to remain under
pressure during the last half of January. Momentum indicators have
already turned bearish with this week's sell off and point to
additional weakness over the next week or two.

March cocoa gapped down and closed lower thereby signaling an end to
this week's short covering bounce. Closes below 1260 are needed to
confirm this week's trendline breakout, which would also open the
door for a large-degree decline into the end of January. Momentum
indicators are bearish signaling that additional weakness appears
likely.

March sugar closed lower on Friday but fell short of testing of last
fall's uptrend line crossing near 720. I would not be surprised to
see this support level tested in early trading on Tuesday. However, I
would not rule out a short covering rebound off this key support
level as March consolidates some of this week's losses. Closes below
last fall's uptrend line would open the door for a larger-degree
decline into the end of January. Momentum indicators are bearish
signaling that sideways to lower prices are possible during the last
half of January.

March cotton posted a key reversal down on Friday due to profit
taking ahead of the three-day weekend. Additional weakness on Tuesday
would confirm today's key reversal down and that today's high marked
a double top with last week's high. I am looking for sideways to
lower prices into the end of January as burdensome supplies along
with uncertainty over a recovery in the world economy leave upside
potential limited for the time being.

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I N O   N E W S
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CFTC And China's Regulatory Agency Sign MOU
   http://news.ino.com/press/?release=27720
SEC Approves New Nasdaq Data Product For Professionals
   http://news.ino.com/press/?release=27719
NFA Announces Board Of Directors Election Results
   http://news.ino.com/press/?release=27718

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E X T R E M E   F U T U R E S
____________________________________________________________________________

Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

NGF4   Henry Hub Natural Gas Jan 2004              3.358     0.188  +5.64
ARH2   Australian Dollar/New Zealand Dollar Mar    1.2149    0.0595  +4.88
PNG2   Propane Feb 2002                           0.2875    0.0100  +3.60
HOQ2   Heating Oil Aug 2002                       0.5366    0.0100  +1.85
RAH2   South African Rand Mar 2002              0.086125  0.001375  +1.59
HUQ2   New York Harbor Unleaded Gasoline Aug 20    0.6169    0.0088  +1.42
PBH2   Frozen Pork Bellies Mar 2002               76.400     1.000  +1.32
DAG2   BFP Milk Feb 2002                           12.10      0.15  +1.24
RRH2   Rough Rice Mar 2002                         3.830     0.045  +1.19
CZ4    Corn Dec 2004                             256 1/2         3  +1.17

LOSERS

AGH2   Silver 1,000 oz. Mar 2002                   4.150    -0.295  -6.64
KCH2   Coffee 'C' Mar 2002                         47.40     -1.60  -3.28
CCH2   Cocoa Mar 2002                               1286       -37  -2.80
YIH2   Mini NY Silver Mar 2002                     4.351    -0.119  -2.66
XEH2   Soybean Meal Mar 2002                       157.7      -4.3  -2.66
SMH2   Soybean Meal Mar 2002                       157.7      -4.1  -2.53
NDH2   NASDAQ 100 Index Mar 2002                 1554.50    -40.00  -2.51
SBH2   Sugar #11 World Mar 2002                     7.30     -0.18  -2.41
LBX2   Random Length Lumber Nov 2002              266.00     -6.50  -2.39
SIK2   Silver May 2002                             4.350    -0.105  -2.36

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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

FWC-A  FOST WHEELER PFD CAP TR I 9%                 6.75      1.53  +28.76
ELON   ECHELON CORP                              16.7300    3.6000  +27.27
TSA    SPORTS AUTHORITY                             6.72      1.22  +22.18
MWRK   MOTHERS WORK                              12.0300    1.7900  +17.53
MROI   MRO SOFTWARE INC                          29.2000    4.2400  +16.87
APL    ATLAS PIPELINE PTNRS LP                     28.04      3.85  +16.11
VVUS   VIVUS INC                                  8.0800    1.0600  +15.14
PRN    PUERTO RICAN CEMENT                         24.15      2.95  +14.71
MKT    ADVANCED MARKETING SVCS INC                 23.25      2.90  +14.15
DTAGY  DIGITALE TELEKABEL ADS                     9.2800    1.0300  +13.79

LOSERS

IMCL   IMCLONE SYSTEMS                           21.1500   -8.9300  -29.69
MCTR   MERCATOR SOFTWARE INC                      6.5000   -1.4800  -18.52
CCI    CROWN CASTLE INTL CORP                       6.98     -1.15  -14.56
ELN    ELAN CORP ADS                               38.65     -6.23  -13.91
LABL   MULTI-COLOR CORP                          14.0000   -2.0000  -13.33
NEOL   NEOPHARM INC                              17.0500   -2.4600  -12.83
BREL   BIORELIANCE CORP                          19.1500   -2.6475  -12.37
RGA    REINSURANCE GROUP OF AMER                   27.95     -3.91  -12.25
ARDM   ARADIGM CORP                               5.2500   -0.7000  -12.22
APPX   AMER PHARMACEUTICAL PTNRS                 14.8300   -1.9600  -11.74
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