Trader, Friday DOW +82.27 CRB +0.37 S&P +4.52 USD +0.02 NAS -6.51 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 A complimentary service from INO.com ( http://www.ino.com/ ) Friday: The CRB Index is up 0.37 points to 184.49. The  US Dollar Index moved up 0.02 points to 115.57. The Dow Industrials gained 82.27 points, at 9545.17, while  the S&P 500 climbed 4.52 points, last seen at 1104.61. 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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 _____________________________________________________________________ The STOCK INDEXES http://quotes.ino.com/exchanges/?c=indexes Stock indexes closed slightly lower on Friday due to light profit taking ahead of the weekend. Nevertheless, this week's rally to new highs for October keeps the fall rally intact and sets the stage for a possible test of fib resistance crossing at 1857.56 later this fall. The December S&P 500 index also closed slightly lower in quiet trading on Friday leaving Thursday's key reversal up unconfirmed. Session highs fell just short of testing last week's high at 1114.50 before profit taking pressured the market into the close. If the rally continues, the 50% retracement level of the May/September decline crossing at 1137.45 is December's next upside target.  The Dow closed higher on Friday thereby confirming yesterday's key reversal up. Session highs fell short of testing broken fib support crossing at 9636. The new high close for the month keeps this fall's rebound alive while setting the stage for a possible test of this summer's downtrend line, which crosses near 9905 later this fall.  INTEREST RATES http://quotes.ino.com/exchanges/?c=interest December bonds posted an inside day with a higher close on Friday. Early weakness led to a jab below broken resistance crossing at 107-11. However, a lack of follow-through selling failed to materialize, which triggered a short covering rally into the close. Friday's new contract high close sets the stage for additional gains into early- November and a possible test of the October 1998 high, which crosses at 111-21 later this year. This week's rally has turned the daily ADX bullish.  The CRB INDEX http://quotes.ino.com/exchanges/?c=indexes The CRB index closed slightly higher on Friday due strength in gold, fiber and some energy markets. The CRB is trying to carve out a bottom just above the July 1999 low crossing at 182.67. Closes above 191.99 are needed to confirm that a bottom has been posted. The daily ADX remains bearish but hints that this fall's decline may soon come to an end. ENERGY MARKETS http://quotes.ino.com/exchanges/?c=energy The energy markets closed mixed on Friday in quiet trading. Recent talk that OPEC will cut crude oil production by as much as 750,000 barrels on November 14th has put a floor under crude oil and the products for the time being.  December crude oil closed slightly higher on Friday as it posted an inside week. Closes above 22.80 or below 21.41 are needed to clear up near-term direction in the market. Daily momentum indicators are bearish but becoming oversold while weekly indicators are bearish and signal that new lows are still possible later this fall.  December heating oil closed lower on Friday in lackluster trading as it ended its fourth week of sideways trading. Closes above 68.60 or below 61.40 are needed to confirm a breakout of this fall's trading range and point the direction of the next trending move. Momentum indicators are neutral to bullish hinting that sideways to higher prices are possible into early-November. December unleaded gas closed lower on Friday confirming Thursday's downside reversal. Closes below 58.25 would set the stage for a possible test of last week's low crossing at 56.80. However, stochastics and RSI are bullish signaling that sideways to higher prices are still possible. December Henry Hub natural closed higher on Friday as it extends this month's short covering rally and confirmed Wednesday's breakout above the April/August downtrend line. Friday's high-range close leaves the door open for additional strength on Monday as the seasonal trend points to higher prices into mid-winter. Stochastics and RSI are becoming overbought but signal that additional strength is still possible. CURRENCIES http://quotes.ino.com/exchanges/?c=currencies The December Dollar posted an inside day with a slightly higher close on Friday thereby leaving Thursday's key reversal down unconfirmed. December is at a crossroads having spiked above September's high, which coincides with the 50% retracement level of this summer's decline at 116.65. Multiple closes above this resistance level are needed to keep this fall's rally alive. Closes below October's uptrend line and Thursday's low at 115.45 would all but confirm that a short-term top has been posted.  The December Swiss Franc posted an inside day with a slightly lower close on Friday leaving yesterday's key reversal up unconfirmed. December remains below broken trendline support crossing near .6082, which leaves the door open for additional weakness this fall if December can close below Tuesday's low at .5996. If the decline resumes, the 50% retracement level crossing at .5944 is December's next target.  The December Canadian Dollar posted an inside day with a lower close on Friday as it continues to consolidate above this week's low, which appears to have also marked a double bottom with the late-September low at .6315. Closes above .6367 would temper the near-term bearish outlook in the market and could set the stage for a possible test of October's high at .6422 later this fall.  The December Japanese Yen posted an inside day with a higher close due to light short covering on Friday. However, the rising ADX signals that additional weakness into the end of October is still possible. If the decline continues, the reaction low crossing at .8090 is a potential target later this fall.  PRECIOUS METALS http://quotes.ino.com/exchanges/?c=metals December gold closed higher on Friday as it extended its short covering bounce off this week's low. Friday's close above the 62% retracement level, which crosses at 278.10 has tempered the near-term bearish outlook in the market while opening the door for additional short covering into early- November. Stochastics and RSI are oversold and turning neutral hinting that a low is in or very near.  December silver closed slightly lower on Friday as it consolidates above September's gap crossing at 4.20. If this support level gives way, September's low at 4.175 is the next downside target. However, momentum indicators are very oversold hinting that a short-term bottom might be near. Closes above broken fib support crossing at 4.294 are needed before a bottom is confirmed.  December copper closed sharply higher on Friday due to short covering after failing to extend this week's decline below last Friday's low at 62.25. Today's close at broken long- term support crossing at 63.50 hints that additional short covering is possible. However, it will take closes above last week's high of 65.20 to signal that a bottom is in place. Momentum indicators are oversold and turning neutral to bullish hinting that additional short covering is possible next week.  GRAINS http://quotes.ino.com/exchanges/?c=grains December corn closed lower on Friday due to light profit taking ahead of the weekend. Session highs tested the September/October downtrend line crossing near 2.07 but was unable to overcome this resistance level. Until this initial resistance level is broken, the door remains open for a possible test of this summer's low crossing at 2.02 1/4 this fall. With the bulk of this year's corn harvest still ahead of us along with the upcoming November supply/demand report, upside potential near-term appears limited.  December wheat closed above key resistance marked by August's high at 2.93 1/2 as it confirmed Thursday's key reversal up. This week's strong export sales report along with mounting concerns over flooding in Argentine wheat country continues to underpin this fall's rally. Multiple closes above August's high would confirm today's breakout thereby setting the stage for a test of the 50% retracement level of the January/September decline crossing at 2.97 possibly on Monday. Momentum indicators are bullish but becoming overbought while the daily ADX (a trend-following indicator) has turned bullish signaling that sideways to higher prices into early-November are possible.  SOYBEAN COMPLEX http://quotes.ino.com/exchanges/?c=grains November soybeans posted an inside day on Friday due to light profit taking ahead of the weekend as it consolidated some of this week's gains. With soybean harvest rapidly coming to an end, downside risk appears limited at this time. Thursday's breakout above October's downtrend line signaled that a harvest low might be in place. Closes above the August/September downtrend line crossing near 4.36 are needed before this is confirmed. This week's downturn by the daily ADX provides added confirmation that an important low was posted earlier this week.  December soybean meal closed higher on Friday due to light short covering. Session highs fell short of filling this month's gap crossing at 163.90 before a sell off ahead of the close tempered some of today's losses. Friday's mid- range close leaves the door open for a possible setback on Monday as December may try and consolidate some of this week's gains. Longer-term, the door is open for a test of the top of the gap crossing at 163.90 then October's high crossing at 167.  LIVESTOCK http://quotes.ino.com/exchanges/?c=livestock December hogs closed higher on Friday due to short covering ahead of the weekend as the market consolidated some of this week's losses. Additional pressure came from light position squaring ahead of this afternoon's monthly USDA hogs and pigs report. This afternoon's snout count showed the U.S. pig crop as of September was 8.56 million head, slightly below the previous year's level. Sow farrowing during this time frame totaled 964,000 head, 1% below last year. The average litter size for September rose to 8.88 compared with 8.84 last year. This afternoon's report had no surprises in it so traders will continue to focus on demand versus supply for near-term direction. Weekly momentum indicators are bearish signaling that sideways to lower prices are likely into November. The daily ADX is also bearish mode and rising, which signals that additional weakness is possible. December cattle posted an inside day with a slightly lower close on Friday leaving Thursday's key reversal up unconfirmed. Gains were limited as cash bids continue to run at a discount to futures prices. Closes above the September/October downtrend line crossing near 67.50 are needed to confirm that a bottom has been posted. Stochastics and RSI are neutral to bullish signaling that sideways to higher prices are possible into early November. FOOD & FIBER http://quotes.ino.com/exchanges/?c=food December coffee posted a key reversal down on Friday due to producer selling as harvest is beginning in southeast Mexico. Session highs fell short of testing broken long-term support marked by the April 1975 low, which crosses at 45.25. Additional weakness on Monday is needed to confirm today's bearish reversal pattern. Closes below Monday's low would renew this year's decline while setting the stage for a possible test of psychological support crossing at 40- cents later this year. December cocoa posted a key reversal up on Friday following a spike below the 62% retracement level of the September/October rally, which crosses at 979. Additional strength on Monday is needed to confirm today's bullish reversal pattern. However, closes above Wednesday's high at 1022 are needed to signal that a short-term bottom was posted with today's low. Stochastics and RSI are bearish but oversold hinting that a low is in or near.  March sugar posted an inside day with a lower close on Friday hinting that a short-term top might be in placed. A close below this week's low crossing at 660 is needed before this can be confirmed. Stochastics are bullish but becoming overbought warning traders to use caution as a short-term top might be in or is near. If the rally off this month's low continues this summer's downtrend line crossing near 709 is March's next upside target.  December cotton closed higher on Friday due to short covering as it posted a key reversal up due to its extreme oversold condition. However, December remains below broken long-term support crossing at 29.50 cents. With December cotton trading at new 29-year lows, additional weakness is still possible. The daily ADX (a trend-following indicator) is still in a bearish mode signaling that additional weakness near-term is possible.  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/ _____________________________________________________________________ I N O   N E W S    _____________________________________________________________________ American Stock Exchange Announces First Japanese ETF 'Twin'    http://news.ino.com/press/?release=27096 NYMEX Reassures Building Occupants On Air Quality    http://news.ino.com/press/?release=27095 Nasdaq Announces New Listing Fee Schedule    http://news.ino.com/press/?release=27094 Final Rules On Security Futures Products Adopted    http://news.ino.com/press/?release=27093 European Power Exchanges Announce Merger    http://news.ino.com/press/?release=27092 ____________________________________________________________________________ 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 PAZ1   Palladium Dec 2001                         343.00     22.00  +6.85 LBU2   Random Length Lumber Sep 2002              257.00     10.00  +3.91 WN3    Wheat Jul 2003                                321        12  +3.88 NGX1   Henry Hub Natural Gas Nov 2001              3.041     0.112  +3.81 AGJ2   Silver 1,000 oz. Apr 2002                   4.310     0.155  +3.64 ERY0   FTSE Eurotop 100 Cash                      2774.8      69.3  +2.56 PLF2   Platinum Jan 2002                           423.4       9.1  +2.20 DAX1   BFP Milk Nov 2001                           11.34      0.24  +2.16 XWZ1   Wheat Dec 2001                                295     6 1/4  +2.16 KWZ1   Wheat Dec 2001                            301 1/2     5 1/4  +1.77 LOSERS DBZ1   Butter Dec 2001                           130.000    -5.000  -3.70 QLX1   Central Appalachian Coal Nov 2001           33.25     -1.00  -2.92 RRX1   Rough Rice Nov 2001                         3.625    -0.095  -2.55 NKH2   Nikkei 225 Stock Avg Mar 2002               10835      -240  -2.17 KCZ1   Coffee 'C' Dec 2001                         43.40     -0.95  -2.14 NDZ1   NASDAQ 100 Index Dec 2001                 1451.50    -30.50  -2.06 SBN2   Sugar #11 World Jul 2002                     6.21     -0.09  -1.43 HOZ1   Heating Oil Dec 2001                       0.6304   -0.0086  -1.34 SX2    Soybeans Nov 2002                         449 1/2    -4 1/4  -0.94 HUZ1   New York Harbor Unleaded Gasoline Dec 20    0.5881   -0.0052  -0.88 *FREE OPTIONS INVESTOR KIT-- CD, Video, or Audiocassette  Specifically designed for futures & option traders. http://www.ino.com/specials/barkley/invpackage.html ____________________________________________________________________________ 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 AVNT   AVANT CORP                                11.3000    4.1100  +57.56 SPEX   SPHERIX INC                                9.4800    3.0500  +44.92 DGIN   DIGITAL INSIGHT                           16.8100    4.6900  +38.13 OVER   OVERTURE SERVICES INC                     25.5000    6.4500  +33.86 ZNGN   ZENGINE INC                                5.9000    1.3800  +29.68 RSAS   RSA SECURITY INC                          12.1800    2.5400  +26.74 VSR    VERSAR INC                                   5.25      1.02  +24.11 IMNY   I-MANY INC                                 5.4400    0.9800  +21.78 CTLM   CENTILLIUM COMMUNICATIONS                  6.0000    1.0500  +21.65 TALX   TALX CORP                                 18.0600    3.2300  +21.55 LOSERS TEST   TEST SECURITY 1                           13.6700   -6.3400  -31.70 ANR    ANNUITY & LIFE RE (HOLDINGS)                24.01     -8.84  -26.91 SCSC   SCANSOURCE INC                            43.7000  -13.6700  -24.02 SWC    STILLWATER MINING COMPANY                   16.44     -4.05  -19.76 VRSN   VERISIGN INC                              42.8200  -10.5400  -19.76 ILUM   ILLUMINET HOLDINGS                        39.6300   -9.2100  -18.87 GPI    GROUP 1 AUTOMOTIVE                          28.31     -6.20  -18.02 OPTV   OPENTV CORP CL A                           7.5000   -1.6200  -17.90 OGLE   OGLEBAY NORTON                            11.4000   -2.2600  -16.13 IMMR   IMMERSION CORP                             5.0400   -0.9225  -15.47 _____________________________________________________________________ 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=mike.grigsby@enron.com&list=evening -- Copyright 1998-2001 INO.com. All Rights Reserved.