Message-ID: <20868480.1075845223494.JavaMail.evans@thyme> Date: Tue, 5 Jun 2001 14:30:18 -0700 (PDT) From: evening@ino.com To: alewis@enron.com Subject: Andrew, Tuesday DOW +114.32 CRB -0.13 USD -0.64 NAS +77.73 S&P +16.46 Mime-Version: 1.0 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@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 T U 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/ ) Tuesday: The CRB Index is dropping 0.13 points to 210.21. The US Dollar Index declined 0.64 points to 118.55. The Dow Industrials advanced 114.32 points, at 11175.84, while the S&P 500 gained 16.46 points, last seen at 1283.57. The Nasdaq Composite advanced 77.73 points to 2233.66. $$$ FREE OPTIONS INVESTORS KIT $$$ http://www.ino.com/specials/barkley/ _____________________________________________________________________ TOMORROW'S MARKET PRICES TODAY _____________________________________________________________________ Armed with such information, such power, you could easily make a fortune! Do you suspect that the markets follow some pattern? That somehow there is some order and reason to market movements? Then you'll be both intrigued and thrilled at this tremendous discovery. CALL MARKET TOPS AND BOTTOMS WITH PINPOINT ACCURACY . . . It makes no difference what market, stocks, futures, anything. These techniques forecast both intraday price moves and the 2-3 day short-term price swings. If you can construct a bar chart, you can forecast market moves. "Joe is one of only a handful of truly successful traders I know. His accuracy is incredible. 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This positive news sent the Nasdaq sharply higher on the day filling last Wednesday's gap at 2170.58 thereby increasing the odds that a short-term bottom was likely posted with last week's low. Today's strong gains turned momentum indicators neutral to bullish signaling that sideways to higher prices during the first half of June are possible. The Dow also closed higher on Tuesday due to spillover support from the Nasdaq and S&P 500 index. The Dow's solid rebound off last Friday's low has turned short-term momentum indicators neutral to bullish signaling that additional gains are possible. However, I would not be surprised to see a pause if not modest setback on Wednesday as the Dow may consolidate some of its recent gains before extending its rebound off last week's low. Closes above May's high crossing at 1135 are needed to renew this spring's rally. INTEREST RATES September bonds closed higher for the fifth day in a row following the release of the National Association of Purchasing Management's May non-manufacturing index showed continued weakness and the April factory orders report was softer than expected. September bonds have retraced just over 62% of May's decline. If the rally continues, the 75% retracement level crossing at 101-20, then May's high at 102-22 are potential targets later this month. Momentum indicators are bullish signaling that sideways to higher prices into early-June are possible. The CRB INDEX closed slightly lower on Tuesday in narrow trading as it continues to consolidate above trading range support crossing at 208.43. Closes below this support level would confirm a trading range breakout thereby opening the door for a larger-degree decline during June. At the same time, momentum indicators are becoming oversold warning traders that the CRB might have posted a broad double bottom with last week's low. Closes above broken support crossing at 213.20 are needed to temper the bearish outlook. ENERGY MARKETS were mixed on Tuesday. Early strength in the energy products was due to short covering, which was triggered by a refinery snag. However, weakness in the cash markets tempered today's gains as traders await this afternoon's API inventory data reports. In other news, OPEC ministers meeting in Vienna are likely to keep production quotas and current levels. They also are likely to increase production to offset the short fall caused by Iraq's suspension of oil exports over the weekend. July crude oil closed higher on Tuesday as it continues to consolidate above the 50% retracement level of the December/May rally crossing at 27.51. Momentum indicators are bearish but nearing their respective oversold zones warning bears to use caution when trying to press their hand. If the decline off May's high resumes, April's reaction low crossing at 27.25 is July's next target. July heating oil closed higher on Tuesday due to short covering thereby leaving Monday's downside reversal unconfirmed. Closes below last week's low, which coincides with the 38% retracement level of the December/May rally crossing at 75.66 are needed to renew July's decline off May's high. Stochastics and RSI remain bearish signaling that additional weakness near-term is possible. July unleaded gas spiked below last week's low crossing at 90.30 and this year's uptrend line before a short covering bounce tempered some of today's losses. A number of short- term momentum indicators though bearish are becoming oversold hinting that we could see a short covering bounce off the aforementioned uptrend line. If this support level is broken, the door would be open for a possible test of April's gap crossing at 87.25 later this month. July Henry Hub natural gas posted a huge key reversal down on Tuesday after early session strength failed to attract follow-through buying. Additional weakness on Wednesday is needed to confirm today's bearish reversal pattern thereby signaling the likely end of the corrective rebound off last week's low. CURRENCIES The September Dollar closed lower on Tuesday due to light profit taking amidst rumors of European Central Bank intervention. Additional weakness on Wednesday is needed to confirm today's bearish reversal pattern however, it will take closes below May's uptrend line crossing near 118.57 to signal that a short-term bottom has likely been posted. Until then the door remains open for sideways to higher prices during the first half of June. The daily ADX (a trend-following indicator) is bullish signaling that additional strength is possible. The September Swiss Franc closed sharply higher on Tuesday and in doing so filled last week's gap at .5631. Closes above .5645 are needed to turn a number of momentum indicators neutral to bullish thereby increasing the odds that a short-term bottom might be in place. Until then, the door remains open for a test of weekly support crossing at .5508. The September Canadian Dollar posted a potential key reversal up on Tuesday and is set to challenge trading range resistance crossing at .6541. Multiple closes above this resistance level are needed to confirm a breakout and renew the rally off April's low. Momentum indicators are bullish signaling that sideways to higher prices during the first half of June are possible. The September Japanese Yen posted a key reversal down on Tuesday and in doing so turned a number of short-term momentum indicators neutral to bearish. Additional weakness on Wednesday is needed to confirm today's bearish reversal pattern. However, the close below trading range resistance crossing at .8425 is a clear warning to bulls that a top and trend change might be near. PRECIOUS METALS August gold closed slightly higher on Tuesday as it continues to consolidate around the 75% retracement level of this spring's rally crossing at 267.20. While the near-term trend is down, the recent consolidation near the aforementioned support level along with stochastics and RSI becoming oversold hint that a short-term bottom might be in or near. If the decline continues, the reaction low crossing at 263.20 is August's next target. July silver posted a quiet inside day with a slightly higher close to consolidate some of Monday's losses. The door remains open for a test of trading range support crossing at 4.31 cents. If this support level is broken, the door would be open for additional weakness and a possible test of weekly support crossing at 4.15 later this month. July copper closed higher on Tuesday due to short covering following Monday's spike below May's low at 74.75. Momentum indicators remain bearish hinting that additional weakness is possible. Closes below Monday's low would open the door for a test of weekly support crossing at 74.10 later this month. Closes above 77.20 would increase the odds that a double bottom was posted with Monday's low. GRAINS July corn posted a downside reversal with a lower close as buying faded into the close. Talk of warmer weather by the weekend or early next week erased early support due to Monday's bullish crop conditions report. Even if the weather forecast are true, this week's cool/wet weather will likely cause further deterioration in next Monday's crop ratings report. Despite today's sell off, the recent trendline breakout has opened the door for sideways to higher prices with May's high at 2.11 1/2 being a possible target. July wheat extended Monday's decline despite Monday's friendly crop condition report that showed further deterioration in the winter wheat crop. Harvest pressure along with a favorable world weather outlook for wheat- producing areas and stagnant U.S. export demand continues to weigh on prices. While a short covering bounce is possible on Wednesday as July may try and consolidate some of this week's losses, momentum indicators have turned bearish and the door is open for sideways to lower prices into mid-June. SOYBEAN COMPLEX July soybeans closed fractionally higher on Tuesday. Early strength was tied to Monday's friendly crop condition report. However, extended forecasts are calling for a warm up and drier conditions to move into the Midwest by the weekend or early next week, which sent buyers to the sidelines. Traders remain reluctant to push the panic button despite slow crop development and declining crop conditions given the projected increase in next year's carryout and the strong U.S. Dollar. Look for two-sided trading to continue near-term. July soybean meal gapped up and closed higher on Tuesday but near session lows due to profit taking ahead of the close. Early support was due to Monday's crop conditions reports and spillover short covering following Monday's upside reversal. July meal needs to close above 168 or below 159.60 to clear up near-term direction in the market. Until then, look for two-sided trading to continue to dominate the market. LIVESTOCK August hogs closed lower on Tuesday on ideas that meat packers will reduce slaughter thereby pressuring the cash market. Additional pressure came from ideas that August has become slightly overbought technically. However, today's mid-range close leaves the door open for sideways trading on Wednesday. If the rally resumes, April's high crossing at 65.95 is August's next target. Closes below last week's gap at 64.00 would strongly suggest that a short-term top has been posted. August cattle closed slightly lower on Tuesday as traders await direction from the cash market. The recent rally in futures appears to have priced in $76 cash bids. Momentum indicators have become very overbought warning bulls to use caution a the market might be forming a broad double top with January's high. FOOD & FIBER July coffee closed higher on Tuesday thereby confirming Monday's key reversal up. Today's rally also turned a number of oversold momentum indicators neutral to bullish thereby increasing the odds that last week's low might have marked a short-term bottom. Closes above May's downtrend line crossing near 62.10 are needed before this is confirmed. July cocoa closed higher on Tuesday due to light short covering following Monday's upside reversal. Nevertheless, July remains below broken trading range support crossing at 955. Multiple closes above this broken support level are needed to temper the near-term bearish outlook in the market. Momentum indicators are bearish but becoming oversold warning bears to use caution when pressing the short side of the market. July sugar closed slightly lower on Tuesday in narrow trading as it continues to consolidate above last week's apparent double bottom. Momentum indicators are bearish but becoming oversold hinting that additional short covering off last week's low is possible. If the decline resumes, fib support crossing at 832 then 808 are targets. July cotton posted an inside day with a slightly lower close on Tuesday. Additional weakness would increase the odds that the short covering bounce off last week's low may have run its course. It will take closes above this year's downtrend line crossing near 43.95 to confirm that a bottom and trend change has taken place. Until then, the overall downtrend remains intact. 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: Down 1.0% after dipping below 13,000 http://news.ino.com/summary/?id=25642 US Equities Review: Broadly higher; earnings news helps http://news.ino.com/summary/?id=25649 UK Stocks Review: Vodafone, defensives push FTSE above 5,900 http://news.ino.com/summary/?id=25648 FOREX US FX Review: Euro rebounds with help from weak US data http://news.ino.com/summary/?id=25644 Asia FX Review: EUR/JPY and USD/JPY higher on demand from Japan http://news.ino.com/summary/?id=25641 Europe FX Review: Dollar/yen leads way in afternoon trade http://news.ino.com/summary/?id=25643 CREDIT US Credit Review: Gains on weak NAPM, factory orders reports http://news.ino.com/summary/?id=25639 Europe Credit Review: Bonds rally as econ outlook deteriorates http://news.ino.com/summary/?id=25645 Japan Credit Review: June up on buybacks ahead of benchmark rollover http://news.ino.com/summary/?id=25647 COMMODITIES US Futures Summary: Natural gas sinks on technical, stocks ideas http://news.ino.com/summary/?id=25646 EXCHANGES Pacific Exchange to Trade Nine New Options http://news.ino.com/press/?release=24519 NYSE Reports Lower First Quarter Net http://news.ino.com/press/?release=24518 Options Clearing Corp. Elects Two New Board Members http://news.ino.com/press/?release=24517 ____________________________________________________________________________ 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 NDZ1 NASDAQ 100 Index Dec 2001 1880.00 93.00 +4.94 PBG2 Frozen Pork Bellies Feb 2002 72.450 1.950 +2.77 CCN1 Cocoa Jul 2001 952 21 +2.26 ZM1 U.S. Treasury 6% Bond Jun 2001 103 184/256 2 2/32 +2.03 MDU1 S&P Midcap 400 Sep 2001 546.00 9.95 +1.86 RRU1 Rough Rice Sep 2001 5.500 0.100 +1.85 RLU1 Russell 2000 Index Sep 2001 521.00 8.95 +1.75 XSF2 Soybeans Jan 2002 454 1/2 7 3/4 +1.73 MVM1 Value Line Index. Mini Jun 2001 1290.50 20.00 +1.57 HON1 Heating Oil Jul 2001 0.7695 0.0118 +1.55 LOSERS LBU1 Random Length Lumber Sep 2001 311.00 -14.80 -4.54 NGN1 Henry Hub Natural Gas Jul 2001 3.892 -0.174 -4.28 KWN1 Wheat Jul 2001 313 3/4 -6 -1.88 ON1 Oats Jul 2001 110 3/4 -2 -1.77 PLN1 Platinum Jul 2001 583.1 -9.4 -1.59 SEN1 Sugar #14 Domestic Jul 2001 20.78 -0.31 -1.47 MWZ1 Hard Red Spring Wheat Dec 2001 341 -4 1/2 -1.30 PAM1 Palladium Jun 2001 629.20 -8.00 -1.26 XWN1 Wheat Jul 2001 260 1/2 -3 1/4 -1.23 SBH3 Sugar #11 World Mar 2003 7.41 -0.09 -1.20 ____________________________________________________________________________ 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 NESY NEON SYSTEMS 8.20 2.10 +33.87 CFKY COLUMBIA FINL OF KENTUCKY 10.98 2.76 +33.45 TOX MEDTOX SCIENTIFIC 12.74 2.65 +26.50 DYII DYNACQ INTL 21.00 3.84 +22.44 KT KATY INDUS 5.64 1.04 +22.13 HYSQ HYSEQ INC 16.66 3.03 +22.12 DY DYCOM INDUSTRIES 19.86 3.51 +21.47 NETE NETEGRITY INC 38.02 6.62 +21.08 PROX PROXIM INC 13.66 2.30 +20.25 TWTI THIRD WAVE TECH 10.30 1.64 +19.52 LOSERS MSS MEASUREMENT SPECIALTIES 18.34 -6.64 -26.58 ASHW ASHWORTH INC 6.55 -1.62 -20.00 EMEX EMEX CORP 7.60 -1.64 -17.92 MTROA METRO INTERNATIONAL SA CL A 5.50 -1.25 -17.61 FMK FIBERMARK INC 12.20 -2.05 -14.70 TARO TARO PHARMACEUTICAL IND 64.22 -9.35 -12.68 MOVI MOVIE GALLERY 13.88 -1.79 -12.03 STEI STEWART ENTERPRISES INC CL A 6.96 -0.95 -12.01 MGAMW MULTIMEDIA GAMES WRRT'A' 9.14 -1.10 -10.95 KPN ROYAL PTT NEDERLAND ADS 7.10 -0.85 -10.69 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@enron.com&list=evening -- Copyright 1998-2001 INO.com. All Rights Reserved.