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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "INO.com" <evening@ino.com<@ENRON <IMCEANOTES-+22INO+2Ecom+22+20+3Cevening+40ino+2Ecom+3E+40ENRON@ENRON.com< X-To: Andrew Lewis <alewis@ect.enron.com< X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst W E D N E S D A Y E X T R E M E M A R K E T S A complimentary service from INO.com ( http://www.ino.com/ ) Wednesday: The CRB Index is down 0.75 points to 209.77. The US Dollar Index moved lower 0.04 points to 118.18. The Dow Industrials moved lower 166.50 points, at 10872.64, while the S&P 500 moved lower 19.85 points, last seen at 1248.08. The Nasdaq Composite eased 91.04 points to 2084.50. **** 2 FREE OPTIONS VIDEOS FROM THE OPTIONS INDUSTRY COUNCIL !!! **** http://www.ino.com/specials/oic/video2.html _____________________________________________________________________ Uncanny 99.39% Accuracy and $730,566.72 Profits _____________________________________________________________________ . . . a Revolutionary Profit Mircle! http://store.ino.com/sale/1DC1C/TWSP-Uncanny Dear Andrew: Shocking, all new book reveals the most accurate and profitable trading strategies I have ever seen - anywhere. With 491 wins out of 494 trades since May 1995, this is a virtual sure-thing-profit secret! In fact, in over 26 years in futures and options, I have never seen a trading system that came so close to virtually guaranteeing profits, trade - after - trade. Win on at least 9 out of every 10 Trades - Absolutely Guaranteed! Now I've seen hundreds of trading systems claiming huge profits - and most just self-destruct when put to the test. That's why I immediately began following this strategy...way back when I first learned of it. The results blew me away! Every trade - every last one - has been profitable since. Take a look for yourself. The phenomenal record was no pipe dream. Trade after trade, it has proven to be the trading system of a lifetime. FREE 9 PAGE BROCHURE ONLINE @ http://store.ino.com/sale/1DC1C/TWSP-Uncanny <a href="http://store.ino.com/sale/1DC1C/TWSP-Uncanny"<The Science of Automatic Option Profits!</a< Order Toll Free 800-538-7424 - 410-867-7424 All claims on third-party products are made by the publisher and not by INO.com. All Products Guaranteed. _____________________________________________________________________ E X T R E M E M A R K E T C O M M E N T A R Y _____________________________________________________________________ LIVESTOCK: August live cattle closed off $0.45 at $73.70 today. Speculative traders took profits today after the recent big runup had pushed the market into oversold territory. I would not be surprised to see more of a downside correction soon. Prices pushed to a fresh four-month high Tuesday. Resistance lies at the $74.50 level. First support lies at the $73.40 level. August feeder cattle closed off $0.27 today, at $91.55. Prices scored an "inside day" and took a rest after they hit a new contract high Tuesday. Feeders are still over-extended on a short-term technical basis. A bull flag looks to be forming on the daily bar chart, as this week we saw an upside breakout from that pattern. First resistance is seen at $92.00. Looking at the weekly continuation chart for nearby futures, the next upside objective for the bulls is resistance just above $92.00. First support is seen at $91.00. August lean hogs closed up $1.65 today at $63.35. Prices closed near the session high. The strong rebound continued today, after limit-up gains seen Tuesday. The market just got too extended on the downside, especially in the wake Friday's bullish USDA Hogs & Pigs report. Fund buying was featured today, sources said. Prices today broke out above and negated a steep five-week-old downtrend. The bulls now have the near-term edge. However, I would not be surprised to see some sideways consolidation in the coming sessions. Next resistance lies at $64.00. First support is located at the 62.00 level. GRAINS: July corn futures closed up 3/4 cent at $1.90 today. It was a quiet "rest day" today after prices Tuesday scored another fresh contract low. Funds have loaded up on the short side now. Good growing weather in the Midwest and no threatening weather patterns in the forecast continue. This market has no summertime weather premium built into it, which will make it very susceptible to an upside spurt even with a minor weather scare. I don't think there is much downside left in corn, but I don't want to be a bottom-picker, either--tempting as it may be at these low prices. Next support is seen at $1.87 3/4. Next resistance is seen at $1.95. July soybeans closed 1 3/4 cents lower at $4.37 1/2 today. Technical damage occurred in the market this week as a five-week-old uptrend line on the daily bar chart was penetrated on the downside and negated. Now, it also looks like a minor double-top reversal pattern could be playing out on the daily bar chart. Good growing weather and no weather threats on the horizon have allowed the bears to take control of this market. Funds have been good sellers in the bean pit this week. Still more downside action this week would not surprise me. First support is seen at the $4.35 area. First resistance is now seen at $4.45 level. July soybean meal closed off $1.60 at $160.20 today. Another down day today negates a five-week-old uptrend line on the daily bar chart. Bears are gaining steam now. After prices pushed to a fresh four-month high Friday, they have seen a solid downside correction this week. Bulls need to stop the bleeding soon or this weakness will quickly become more than a downside correction. Next support comes in at the $158.00 area. First resistance is seen at $162.60--today's high. July bean oil closed 6 points higher at 14.80 cents today. Today's follow-through buying has confirmed a key reversal up, after prices pushed to a fresh contract low on Tuesday and then staged a strong rebound. This week, spreaders are unwinding short oil and long meal positions. Oil is still technically much weaker than beans or meal. But I would be surprised if there is much downside left in oil. Next resistance comes in at 15.00 cents. Next support is seen at 14.60 cents. July Chicago wheat closed 3/4 cents lower at $2.64 today. Prices closed near the session low as traders looked at slack demand prospects. Earlier in the session, prices were boosted by heavy storms that hit Kansas and Oklahoma the past 24 hours. First support lies at the $2.58 1/2 level--the contract low. Next resistance is seen at $2.70. K.C. July HRW wheat closed up 1 cent at $3.20 1/4 today. Prices gapped higher today in the wake of the heavy storms that hit parts of the Plains the past 24 hours. However, prices closed on the session low. Still, the upside gap was not filled with the late retreat. Also, there was follow-through buying today and a key reversal up on the daily bar chart was confirmed. Recently, this market has seen a series of V reversals--both up and down. Trading remains volatile. Next resistance is seen at the $3.25 level. Next support is seen at $3.20. July oats closed up 1/2 cent at $1.12 1/4 today. Prices closed near the session low today, as did wheat. The choppy activity at lower price levels also favors the bulls. The past three weeks have seen another minor uptrend develop on the daily bar chart. Oats will continue to look to corn and wheat for direction. Next resistance comes in at the $1.14 level. First support now comes in at $1.10. SOFTS: July N.Y. sugar closed 15 points lower at 8.59 cents today. Prices today dropped to another fresh four-week low as the recent higher volatility at higher price levels has proven bearish. Also, the rare and usually bearish broadening formation continues to play out on the daily bar chart. Bears have the technical edge at present. However, the market is overdone on the downside at present, on a technical basis. Next support comes in at 8.40 cents--today's low. First resistance is now seen at 7.72 cents--today's high. July N.Y. coffee closed 65 points lower at 59.15 cents today. Prices today came within 10 points of the contract low set in April. Bears rule. Bulls can only hope for a strong rebound from the present price level, which would signal a big double-bottom reversal. Still, given the upcoming frost season in South America, I suspect the downside from present levels will be limited in the coffee market. Speculative short-players won't want to get too brave at this time of year. First support comes in at the contract low of 58.80 cents. First resistance is now seen at 63.00 cents. July N.Y. cocoa closed $39 lower today, at $964. More technical damage was inflicted by the bears today as prices hit another fresh three-week low, as there was follow-through selling from Friday's gap-lower trade. The bears are in control, but the market is short-term overdone on the downside at present. Next support comes in at $955. First resistance is now seen at $1,009--today's high. July cotton closed 32 points lower at 40.72 cents today. Prices hit a fresh contract low just yesterday, in the wake of a bearish USDA cotton consumption report last Friday. Cotton is in a strong bear market and any rebounds will be selling opportunities for the bears--for now. My bias is still that we are not that far from a bottoming process. Next support lies at 39.95 cents--the contract low. First resistance is seen around 42.00 cents. Recently, I put December New York cotton futures on my "Radar Screen" for a potential long-side trade in the coming weeks. But first (and importantly), this market has to me show solid strength, including some basing activity at these lower levels. July orange juice futures closed 90 points higher today, at 80.40 cents. Trading has turned volatile lately, but it still favors the bullish camp. Bulls pushed prices to a fresh three-month high just last Friday. Prices are still in an uptrend on the daily bar chart--albeit a choppy one. Next resistance is now seen at 82.00 cents. Next support now comes in at 79.00 cents. July lumber futures closed the limit of $10.00 lower today, at $322.30. "What goes up, must come down." A V-Top reversal is playing out in lumber. I still would be surprised if the upside fireworks are over. The market was way overdone on the upside and this still could be just a big correction before still-higher highs are scored. Expect more volatility in the near term--on the upside and downside. The next upside objective for the bulls is the $350.00 level. First support is seen at $315.00. METALS: August COMEX gold futures plummeted by $7.70, to 4267.40 an ounce. Heavy long liquidation and stop-loss selling were featured in the pit. The recent Commitments of Traders report showed the small speculators had loaded up on the long side of gold futures recently. Today, those weak longs were coughing up their positions. News wire reports could offer no fundamental reason for the collapse in prices. Technically, once gold dropped to near the $270 level, basis August COMEX futures, the door was open for stop-loss selling and general long liquidation. A big V-Top reversal has now formed and played out on the daily bar chart. Pit reports said there was not much fresh short selling interest Wednesday. Once again, the gold bulls mustered the strength to show an impressive upside move, only to be kicked in the teeth when a lack of follow-through buying interest at higher levels prompted a price vacuum on the downside. There is a support level around the $264 area, basis August futures. If that level gives way, then the next support comes in at the $260 area. This market is now short-term oversold, on a technical basis. Next resistance on the upside is seen at the $275 area. For bulls to really get back on their feet, they must push prices back above the $290 level. If volatility persists, it will favor the bulls. July silver closed off $0.095 today, at $4.445 an ounce. Like gold, long liquidation and stop-loss selling hit silver today, and it was prompted by the sell of in gold. Prices have now backed well off last week's high and could be forming a V-Top reversal on the daily bar chart. Bulls today lost much of their momentum they had gained that saw prices push to a three-month high. Still, the recent increase in volatility is suggestive of a bottoming process in silver. Next support is seen at $4.40. First resistance is now seen at $4.50. July N.Y. copper closed off 45 points today, at 76.25 cents. The sell off in the precious metals has impacted copper this week. While this deals the bulls a near-term setback, the higher volatility at lower levels does favor the bulls. My bias is still that the lows are in place for copper. Next support is seen at 75.00 cents. Next resistance is seen at 79.00 cents. ENERGIES: July crude closed off $0.14 at $28.52 today. Prices this week are correcting from the big beating they took late last week. Bears still have the edge, and in fact a bearish flag or pennant pattern may be forming on the daily bar chart. Next resistance is seen at 29.50. Next support lies at $28.00. July heating oil closed 2 points lower today, at .7784. Prices are still correcting downward after they last week hit a fresh eight-month high. Bulls still have the edge. Next resistance is seen at 80.00 cents. Next support is seen at 77.00 cents. July unleaded gasoline closed 139 points lower at .9450 today. Prices closed near the session low as the bears gain confidence. A rare and usually bearish broadening formation is developing on the daily bar chart. This increase in volatility at higher price levels suggests a topping process in the market. Next resistance is seen at $1.00. First support is seen at $.9300. July natural gas closed 20 cents higher at $4.01 today. Prices today saw a decent rebound from a technically oversold condition. The market is still oversold on a short-term technical basis. Prices hit a fresh nine-month low just Tuesday. Bears still have the big advantage. Next support is seen at $3.67--today's low. First resistance is seen at $4.25. STOCKS, FINANCIALS, CURRENCIES: The June Euro currency closed 10 points higher at .8567 today. Bears are in control as prices hover near the recent for-the-move low. In fact, a bearish pennant pattern may be forming on the daily bar chart. Measuring implications of that pattern, should a downside breakout occur, point to losses to the .8300 area. Bulls' only hope is that last week's low of .8502 can hold the losses. Next support is now seen at .8502. Next resistance is seen at .8650. The June Japanese yen closed 19 points lower at .8328 today. Prices pushed to a fresh two-month high last Thursday and are this week consolidating those recent gains. The recent push higher moved prices out above the congestion area that had trapped prices for about two and one-half months. Bulls still need to show some more upside strength before I am confident in calling this an upside "breakout." Next resistance now lies at the .8433 level. First support is now seen at the .8200 level. The June Swiss franc closed 8 points higher at .5625 today. Like the Euro, bulls want to see last week's low hold up before they can gain any momentum at all. And like the Euro, a bearish pennant pattern could be forming on the daily bar chart. Measuring implications on a confirmation of the pattern point to losses to the .5400 area. A 5-month-old accelerating downtrend line is in place on the daily bar chart. Next support is seen at the .5588 level--last week's low. First resistance comes in at the .5700 level. The June Australian dollar futures closed 45 points lower at .5124 today. Prices pushed to a fresh 3-month high last week and bulls can argue we are seeing corrective consolidation this week. Still, downside price action last week penetrated on the downside and negated a seven-week-old uptrend line on the daily bar chart. Bulls should be worried about this. They need to show some fresh momentum soon. First support is seen at .5069. First resistance is now seen at .5225. The June Canadian dollar closed 33 points lower today, at .6469. Prices closed near the session low. If prices drop below the May low of .6425, then bears will be on a level playing field with the bulls. This currency had been near recent historic lows and I do not think there is much more downside. In fact, a wedge pattern may be forming on the daily bar chart that, if confirmed, would likely favor the bulls. Next resistance is seen at the .6535 level. First support is now seen at the .6450 level. The June British pound closed 42 points higher at 1.4264. Prices are rebounding after last Thursday prices fell below the early April low of 1.4112. If there would have been follow-through selling, then the door would have been open to steeper losses. If the losses can be contained and prices rebound, one could still argue that price action the past few weeks has been a "basing" before prices eventually turn north. Next resistance is seen at the 1.4300 level. Next support now comes in at the 1.4150 level. The June U.S. dollar index closed 3 points higher at 118.31 today. Bulls are still in firm control. In fact, a bullish pennant pattern could be forming on the daily bar chart. The index last week pushed to a fresh multi-month high. If bulls can push prices above and have a close above the 119.00 level, then there is likely significantly more upside potential to this rally, even though the index is still a bit short-term overbought, technically. There is stiff resistance, basis the longer-term charts, at the 119.00 area. Next resistance lies at the 119.00 area. First support is seen at the 117.50 area. September U.S. T-bonds closed 7/32 higher today at 98 20/32. The market is consolidating at lower levels. Bears still rule. The next upside objective for the bulls is the par level--100 even. But any near-term rebound will be corrective in nature only, until prices can push above the 102 area. Prices pushed to a six-month low just recently. First support at 98 6/32. The September U.S. T-note closed up 4.5 (32nds) today at 102.00.5. Prices fell to a multi-month low just recently as bears rule. Severe technical damage has been inflicted recently. First support is seen at the 101.30.0 level. First resistance is seen at 102.30.5 level. September Nasdaq futures closed 72.00 lower at 1805.00 today. Bulls are losing technical ground that they had gained recently with the push above the 2,000 level. It just shows how the stock indexes will not let either the bulls or the bears have much of an edge, before prices reverse. First resistance is now seen at 2,000. First support is seen at the 1,750 area. September S&P 500 futures closed 18.70 lower at 1260.10. We are seeing some consolidation the past few days after prices hit a fresh three-month high last week. Bulls are still encouraged by the continuing uptrend off the March low, but they do need to stop the slide lower seen the past few sessions. My bias is still that any recovery in the stock market and the stock indexes won't be dramatic, but a slower grind higher, with fits and starts. First resistance is now seen at 1300.00. First support is now seen at the 1240.00 area. Daily Extreme Commentary is brought to you by GLOBALcharts, INO.com's end-of-day charting software for Futures, Futures Options and Optionable Stocks. http://www.globalcharts.com Search the INO Store - http://store.ino.com/ _____________________________________________________________________ T O P N E W S _____________________________________________________________________ STOCKS Japan Stocks Review: Nikkei -2% on Deutsche downgrades/Nasdaq fall http://news.ino.com/summary/?id=25601 Add2: US Equities Review: DJIA closes below 11,000 on tech selloff http://news.ino.com/summary/?id=25599 UK Stocks Review: Weak tech stocks push FTSE-100 below 5,800 http://news.ino.com/summary/?id=25607 FOREX US FX Review: Dollar remains mixed; traders hunting for clues http://news.ino.com/summary/?id=25603 Asia FX Review: Euro/yen comes under pressure on broad selling http://news.ino.com/summary/?id=25600 Europe FX Review: US fund buying limits euro's losses http://news.ino.com/summary/?id=25602 CREDIT US Credit Review: Only modest gains despite stock market slide http://news.ino.com/summary/?id=25598 Europe Credit Review: Bond prices range-bound despite firm M3 http://news.ino.com/summary/?id=25604 Japan Credit Review: June ends up slightly in range-bound trades http://news.ino.com/summary/?id=25606 COMMODITIES US Futures Summary: Gasoline, gold hammered; natural gas soars http://news.ino.com/summary/?id=25605 EXCHANGES NYBOT Announces New Margin Requirements http://news.ino.com/press/?release=24487 KCBT Value Line Margin Changes Announced http://news.ino.com/press/?release=24486 Pacific Exchange To Trade Options on Instinet Group and USEC http://news.ino.com/press/?release=24485 60% Of IPE Holdings Shares Tendered To IntercontinentalExchange http://news.ino.com/press/?release=24484 Simon Heale Appointed London Metal Exchange Chief http://news.ino.com/press/?release=24483 ____________________________________________________________________________ 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 NGN1 Henry Hub Natural Gas Jul 2001 3.981 0.200 +5.25 ZM1 U.S. Treasury 6% Bond Jun 2001 103 184/256 4 15/32 +4.50 LHQ1 Lean Hogs Aug 2001 63.300 1.600 +2.59 XHQ1 Lean Hogs Aug 2001 63.27 1.57 +2.54 DAU1 BFP Milk Sep 2001 15.60 0.38 +2.50 HGK2 Copper May 2002 0.7905 0.0110 +1.39 OJN1 Orange Juice Froz. Conc. #1 Jul 2001 80.40 1.00 +1.26 MQU1 Mexican Peso Sep 2001 9.4652 0.1085 +1.16 RRN1 Rough Rice Jul 2001 5.660 0.060 +1.07 KWN2 Wheat Jul 2002 346 3 1/2 +1.02 LOSERS XKM1 Gold Jun 2001 265.7 -11.9 -4.34 NGJ4 Henry Hub Natural Gas Apr 2004 3.780 -0.159 -4.21 NDM1 NASDAQ 100 Index Jun 2001 1786.00 -70.50 -3.80 CCN1 Cocoa Jul 2001 964 -38 -3.79 HUM1 New York Harbor Unleaded Gasoline Jun 20 1.0412 -0.0378 -3.51 XYU1 Silver 1,000 oz. Sep 2001 448.2 -15.8 -3.42 KIM1 Kilo Gold Jun 2001 263 -9 -3.31 GCZ2 Gold Dec 2002 276 -9.2 -3.24 LBU1 Random Length Lumber Sep 2001 305.40 -10.00 -3.17 PNU1 Propane Sep 2001 0.5050 -0.0125 -2.42 ____________________________________________________________________________ E X T R E M E S T O C K S ____________________________________________________________________________ Updated every 10 minutes around the clock. More at http://quotes.ino.com/analysis/extremes/stocks/ WINNERS RHT RICHTON INTL 35.60 6.50 +22.41 BCR BARD (C.R.) 56.09 10.09 +21.93 BAU BACOU USA 28.00 4.60 +19.66 TARO TARO PHARMACEUTICAL IND 66.09 10.39 +18.65 IPIC INTERNEURON PHARMACEUTICALS 6.74 1.01 +17.84 ANST ANSOFT CORP 17.37 2.14 +14.04 MRVT MIRAVANT MEDICAL TECHNOLOGIES 12.24 1.49 +13.91 TT TRANSTECHNOLOGY 8.75 1.05 +13.29 VIP OPEN-JOINT/VIMPEL COMMUN ADS 17.20 1.90 +12.62 TELM TELLIUM INC 23.02 2.49 +11.66 LOSERS UNEWY UNITED BUSINESS MEDIA PLC 10.69 -9.41 -46.82 EMEX EMEX CORP 16.98 -9.21 -34.89 ASFI ASTA FUNDING 8.71 -2.55 -25.50 AEGN AEROGEN 5.20 -1.74 -25.04 SABA SABA SOFTWARE 10.87 -3.08 -21.95 WEBX WEBEX COMMUNICATIONS INC 15.00 -4.01 -21.12 TIVO TIVO INC 7.25 -1.83 -20.13 BRZZ BRIAZZ INC 5.40 -1.34 -19.73 ADTK ADEPT TECHNOLOGY 10.06 -2.44 -19.15 FFIV F5 NETWORKS 10.39 -2.41 -18.95 FREE MANAGED FUTURES & IRA RETIREMENT KIT http://www.ino.com/specials/icm/ $$$$ Foreign Exchange Traders! INO.com now has $$$$ real-time cross rates, FREE online at: $$$$ http://quotes.ino.com/exchanges/forex-cross/ _____________________________________________________________________ T H A N K Y O U _____________________________________________________________________ Thank you for subscribing to the Extreme Markets Daily Digest from INO.com ( http://www.ino.com/ ). If you want to subscribe to our other email services, or would like to modify your profile please visit http://www.ino.com/email/. To subscribe a friend, visit: http://www.ino.com/email/ To unsubscribe, visit: http://www.ino.com/email/remove/?email=alewis@ect.enron.com&list=evening -- Copyright 1998-2001 INO.com. All Rights Reserved.
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