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FuturesCom Investment Publications
Bi-Weekly Investment Outlook
December 29th 2001
Experienced Since 1979 - Serving Professional and Individual Traders World Wide since 1988
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Description of Services Premier Service

Bi-Weekly Investment Outlook
Saturday December 29th, 2001
11:00 PM est.

                                                          Financial Markets

On the Frenzied Forex Front
Japanese Yen
As expected over the last two weeks currency players continued to sell Yen as the 'stated desired Yen policy by Japan'
is one that 'reflects economic conditions'.. Conditions that once again seem to be progressing from bad to worse as the
Japanese Ministry of Economy, Trade and Industry last week reported the ' index of output at mines and factories'
dropped 13.1% in November from a year earlier, the largest decline since May 1975.

While traders continued to pressure the Fiat currency of the worlds second largest economy there were reports by Japanese media that some lawmakers in the LDP party are suggesting the Bank of Japan should shed its reluctance to buy dollar-denominated bonds to weaken the yen.. Some are even suggesting the yen should weaken to 140 to 150 against the dollar which would put our futures somewhere in the 6700 to 7150 range,, .Thus far, the Japanese Ministry of Finance has publicly and steadfastly refused to induce a weaker Yen.

Most likely trying to appease China and other Asian partners....

The Chinese government is most likely not too pleased about the depreciation of the yen against the dollar, and could in fact semi-quasi devalue the Yuan.

As the yen decline appears to be somewhat aimed at forcing the Yuan to strengthen against the yen via a stronger dollar.. .

China unofficially defines (fixes) the Yuan in terms of the U.S. dollar, even though the U.S. dollar has no definition at all,. officially or unofficially.

Digressing ...the U.S Dollar is not fixed .. it floats... a floating dollar means it's value in terms of real things almost always changes from minute to minute. Lawrence Meyer, Vice Chairman of the Fed,   recently gave a speech saying how lucky we are to have a floating dollar. Because it can ride the waves of an increasingly turbulent monetary ocean. However if one looks back the late 1970's the floating dollar was sinking and a basket of currencies was needed to support it during the Carter days.

Perhaps it's the other way around, maybe the reason we have periods of turbulent monetary oceans at home and around the world is because the American dollar and a variety of the rest of the world's currencies are floating around like butterflies with the various Federal Reserves, investors and traders trying to catch them. Including your truly...

There really is nothing that can be done about this... but consider this, we have units of measure everywhere .. gallons of gas. ounces of soda .. yards of carpet .. gigabytes of memory , volts of electricity ...Six billion people in the world are used to using fixed standard units of measure.

Imagine if the definition of a Gigabyte meant one thing next week and the month thereafter than it does today ? or how about your gas tank being full on 15 gallons today and say five next week ?
Same size tank... different size gallons .. the result would not be fun at all..!! It is much easier for people to do business when they can agree on the definition of their units of measure !

Perhaps the current state of the worlds economies is not unlike the kind of quandary we would expect in the computer industry if the Gigabyte floated. 'Hardware' (like economies) would need constant,
sometimes dramatic adjustments to make the same software environment run correctly..

To make things worse the two countries are in disagreement over the size of Japan's trade deficit with China.

China's figures indicate that Japan had a 140 mln USD trade deficit with China last year, while Japan's figures show a trade deficit with China of 24.9 bln USD..

A few years back China tried to keep it's currency stable during that regions financial crisis because Hong Kong was just returning China and devaluing at that time would have caused Hong Kong to suffer.... that has changed a bit now.

With all the talk, rancor and babble the yen rallied a bit on Thursday and Friday from oversold conditions and reports in the Japanese media that Prime Minister Koizumi will announce plans early next year to help the nation's ailing banks in an effort to prevent a financial crisis. Those measures, according to ruling Liberal Democratic Party Secretary General Taku Yamasaki, would include injecting more public funds into banks to prevent the economy from collapsing...

Something was needed 'yesterday ' not next year when they get around to it.. As it appears that Japan's domestic economy
is inevitably going to take some kind of hard landing.... somewhere and the Japanese may be counting on exports more and
more to soften the blow..

Monthly Yen Futures

March Yen
Support should appear near 7601 to 7587..A close under is negative and augurs for a test of support near the
7513 to 7487 region . Traders can buy at 7515 for a good turn higher and risk a close under 7412 for three days in a row..Under that support should appear near 7342 to 7325 and the 7255 to 7240 region..

Resistance should appear near 7675 to 7689 and the 7763 to 7777 region , a close over augurs for a test of 7836 to 7864. Traders can sell at 7835 and risk a close over 7865 for three days in a row.. .Beyond that 7939 to 7954 should cap a rally for a bit.

Daily EC Futures

March EC
Recommended open position long 8818
Support is at 8777 to 8762 and the 8683 to 8668 region.. Below that buyers should appear near the 8589 to 8560 region
and contain a decline..
Nearby Resistance is at 8818 and 8856 to 8871... A close over is friendly and augurs for a test of 8934 to 8964 and beyond towards the 9044 to 9060 region..

Aggressive traders should go long if a close over 8871 occurs..Stay tuned for Updates…

Daily Swiss Franc Futures
March Swiss Franc
Resistance should appear near 6023 to 6035. Beyond that a trade towards the 6101 to 6113 region is likely to occur.
A close over 6113 augurs for a test of 6165 to 6190 and beyond. Above that Sellers should appear near 6337 to 6350 and the 6417 to 6430 region.. Traders can sell at 6416 and risk a close over 6510 for three days in a row..
Support should appear near 5957 to 5945 then 5880 to 5855 and the 5805 to 5795 region. Traders can buy at 5805 for a turn higher and risk a close under 5715 for three days in a row. Below that buyers should appear near 5655 to 5640.

Aggressive Traders should go long if a close over 5991 occurs..

Daily March British Pound Futures

March British Pound
Support should appear near 1.4372, traders can buy at 1.4372 for a bounce , risk a close under 1.4336 for three days in a row. Below that support should appear near the 1.4210 to 1.4150 region and should contain a decline for a bit , traders can buy at 1.4212 for a bounce and hold for higher prices.. Under that support should appear near 1.3990 and the 1.3830 to 1.3770 region.. Resistance is at 1.4530 to 1.4590.. Beyond that a trade towards the 1.4840 to 1.496 region is likely.. a close over 1.4960 is friendly and augurs for an eventual test of 1.5290 to 1.5350.. Traders can sell at 1.5280 and risk a close over 1.5520 for three days in a row..

Traders should go long if a close over 1.4456 occurs..

Daily Canadian Dollar Futures

March Canadian Dollar
Support should appear at 6270 to 6256... Traders can buy at 6271 and risk a close under 6256 for three days in a row, Below that buyers should appear near 6225 to 6190 and the 6115 to 6100 region.

Resistance is at 6305 a close over is friendly and augurs for a test of the 6337 to 6350 region.... Beyond that sellers should appear near 6480 to 6510 and the 6577 to 6591 region. Traders can sell at 6576 for a turn lower and hold for lower prices. Above that resistance is at 6659 to 6671 should cap a rally for a bit..

Daily Aussie Dollar Futures

March Aussie Dollar
Support is at 5067 to 5036 Traders can buy at 5052 and risk a close under 4972 for three days in a row. Below that buyers should near the 4926 to 4915 region should contain a decline for a bit..
Resistance should appear near 5127 to 5139, an extended trade over is friendly and augurs for a test of 5200 to 5211 and eventually the 5250 to 5282 region..Beyond that a test of the 5345 to 5355 region is likely .. .
Traders should go long if a close over 5092 occurs

Stay tuned for Forex Updates

                                       The Sensational Stock and Bond Markets
FIRES OF ENTHUSIASM
by Bill Bonner
"The public preference for stock is not only as marked as ever, but also the will to speculate is still a speculative factor not to be overlooked. The prompt return of huge speculation and the liberal manner in which earnings are again being discounted indicate that it will be difficult to quench the fires of stock market enthusiasm for long." Barron's, March 24, 1930

Dow Jones Industrial Average
Resistance should appear near 10,185 and the 10,320 to 10,360 region . An extended period over 10,360 is friendly   and augurs for a test of the 10,580 to 10,680 region, which should cap a rally for a bit

Nearby Support should appear near 10,104 and 10,069 .. Below that buyers should appear near 10,036 to 10,021 and contain a bit of a decline.. However a slip and particularly a close under is negative and augurs for a test of 9837 to 9821 and perhaps eventually the 9737 to 9706 region.

                                                                                       Daily Dow Jones Industrials

While the Xmas shopping season was viewed as a negative, the U.S new economic data was initially viewed as largely supportive to stocks on Friday ... Initial jobless claims for the latest week came in at a rise of 7,000, less than the 16,000 increase which had been expected and November durable goods orders fell 4.8%, less than the 5.0% decline anticipated. In addition the December Conference Board consumer confidence index rose to 93.7 from a revised 84.9 in November and new home sales rose 6.4%.
While the Purchasing Management Association of Chicago index of area business activity rose to 41.4 in December from 41.1
in November.

Prices rallied after seeing those figures but pulled back to near unchanged from Thursday at the close Friday for the SP500
and the Dow was a tad higher , while the Nasdaq rose buy 10 pts, which left it virtually unchanged for our two week period..

While most market observers were declaring a Santa Claus rally had indeed come and with Dollar Signs dancing in their heads
are forecasting that more rallies are on the way as window dressing should improve prices into the new year.

Over the last two weeks there has been much talk of a Santa Claus Rally and Year end window dressing ...
The last time I saw this many people get excited about a 'usual window dressing ( be it a Santa Claus rally or just month end)
was back at the End of the' March 2000 Madness'....I said Caution was due then .. and I say it now again...!

The market was indeed higher over the last two weeks, but I would consider the action on Christmas eve and this past Friday
(two typically thin days where bulls can move markets at their whim ) as sloppy if not downright poor... for a new bull..............
and could very well be a tell tale sign of worsening prices to come....Trade the market like porcupines make love. Very Carefully !

Weekly SP500 Future

March SP500
Nearby Resistance is at the 1164 to 1169 region .. Traders ' Who Sleep on a bed of nails' can sell at 1163.90 for a turn lower, risk a close over 1169 for three days in a row.. Beyond that a test of 1180.50 and the 1192 to 1203 region is likely. A close over 1203 is friendly and augurs for a test of 1217.5 and the 1232 to 1238 region. Beyond that resistance should appear near 1268 to 1274 and the 1304 to 1310 region.
Nearby Support should appear at 1157 and 1150..an extended trade or close under is negative and augurs for another test of the 1136 to 1130 region. Failure there augurs for a test of 1115.5 and eventually the 1101
to 1096 region.. Below that support is at 1082 under that buyers should appear near 1068 to 1063 and 1058.

                                       Aggressive Traders should go short if a close under 1150.00 occurs..

*Stay Tuned for BW Updates* .

Weekly Nasdaq Composite
Nasdaq Composite
Resistance is at the 1982 to 1996 region. Beyond that a test of 2034 to 2042 is likely.. A close over 2034 is friendly and indicates a trade towards the 2080 to 2088 region..Beyond that Sellers should appear near 2126 to 2134 and Cap a rally for a bit.

Support is at 1953 to 1946 , failure there augur for a test of 1909 to 1902 and 1883.. Under that buyers should appear near the 1865 to 1858 region.. A close under is negative and indicates a test of 1822 to 1808 then 1780 to 1774 and the 1738 to 1731 region.

Weekly Nasdaq 100 Future

March Mini- Nasdaq 100
Resistance is at the 1642 to 1655 region, a close over 1655 is friendly and augurs for a test of 1689 to 1696 and the 1731 to 1738 region. Beyond that sellers should appear near the 1775 to 1780 region and Cap a rally..

Support is at 1615 to 1609, an extended trade under 1609 is negative and augurs for a test of 1576 to 1569 and the 1535 to 1529 region.. Below that support should appear near 1496 to 1484.. Below that buyers should appear near 1459 to 1453 and should contain a decline.

Trade Accordingly and Stay tuned....

Daily March Ten Year Note Future

March 10 Year T-Note
Resistance should appear near 104-23, an extended trade over is friendly and augurs for a test of 105-12 to 105-17..
Beyond that sellers should appear near 106-07 to 106-12

Support is at 103-23 and 103-07...a close under 103-07 is negative and augurs for a test of the 102-22 to 102-17 region...Under that a test of 101-23 region is likely.

                                                              Precious Metals
Weekly Gold Futures

February Gold
Recommended open position :
Long 2 at 278.4 avg
Support should appear near 277.5 to 275.8.. Under that buyers should appear near 272.4 to 271.6.. Below that support should appear near 267.2 to 266.3 and 262 to 261.2..

Resistance is at 282 to 282.8 ,   a close over is friendly and augurs for a test of 287.4 to 288.3 and beyond towards the 292.8 to 293.7 region..

                                                      Aggressive Traders should go long if a close over 282.8 occurs.

Weekly Copper Futures

March Copper
Support should appear near 6755 to 6740 and the 6670 to 6655 region.. Traders can buy at 6675 and risk a close under 6570 for three days in a row.. Below that support is at 6210 to 6485 and the 6430 to 6415 region.. Below that 6355 to 6330 should hold.
Nearby Resistance should appear near 6810 to 6835, a close over is friendly and augurs for a test of 6910 to 6925 and eventually the 6990 to 7005 region.. Beyond that sellers should appear near 7075 to 7090 and the 7140 to 7170 region...

Monthly Silver Futures

March Silver
Support should appear near 444.5 to 442.5 and 438.5 to 437 under that buyers should appear near 431.5 to 430.5 and the 425 to 423.5 region.. Traders can buy at 432 and hold for higher prices..Below that support should appear near the 418.5 to 416.5 region.. which should contain a decline for a bit...

Resistance is at 450 to 451.5 and the 457 to 458.5 region. A close over is friendly and augurs for a test of 469.5 to 471.5.. Beyond that sellers should appear near 484.to 485.5
Aggressive Traders should go long if a close over 451.5 occurs. ..Stay tuned for Updates..

The Exciting Energies

In November OPEC approved in principle to cut oil production. That cut was finalized Friday when officials from the Organization of Petroleum Exporting Countries confirmed a 6% cut in its official output. OPEC oil ministers agreed in an emergency meeting
in Cairo to cut output beginning Jan. 1. They also stated cuts would last at least six months.. In addition Non- OPEC major producers agreed to reduce their own output, with cuts totaling nearly 500,000 barrels a day.

However Russia the worlds second largest oil producer has gone on record saying that it's cuts will last only three Months
and Iran wants the cuts indefinitely... As the 'show' goes on and on another cut in output was widely expected for the second quarter , however I feel Traders should primarily treat the Crude and products as a trading markets..as there was more verbage on saturday from OPEC meetings ...OPEC now expects oil demand to go up in the second half of next year, resulting in a probable increase in oil output....

Weekly Crude Oil Futures

February Crude Oil
Support should appear near 1996 to 1982, under that buyers should appear near the 1953 to 1946 region. . Traders can buy at 1955 and risk a close under 1902 for three days in a row..Under that support should appear near 1865 to 1858 and 1822 to 1808, which should contain a decline for a bit.. .
Resistance is at 2080 to 2088, a close over is friendly and augurs for a test of 2126 to 2134 and the 2219 to 2226 region.. Beyond that sellers should appear near the 2315 to 2322 region.. Traders can sell at 2314 and risk a close over 2372 for three days in a row .

Weekly Unleaded Gas Futures

February Unleaded Gas
Support should appear near 5580 to 5555 and 5430 to 5415.. Below that buyers should appear near the 5355 to 5345 region. Traders can buy at 5360 and risk a close under 5255 for three days in a row, Below that support is at 5210 to 5200..Which should contain a decline for a bit.. Under that a test of 5065 to 5035 then 4995 to 4975 and region is likely is likely..

Resistance is at the 6020 to 6035 . Above that Sellers should appear near 6165 to 6190 and the 6340 to 6350 region. Traders can sell at 6335 for a turn lower and risk 150 pts.. Beyond that a test of 6655 to 6670 is likely. Stay tuned for Updates.

Weekly Heating Oil

February Heating Oil
Nearby Resistance is at 5715 to 5730.. Above that a test of 5855 to 5880 is likely. a close over is friendly and augurs for an eventual test of 6100 to 6115 and beyond towards the 6415 to 6430 region..

Nearby Support should appear near 5655 to 5640..,under that buyers should emerge near 5505 to 5490 and the 5355 to 5345 region. Traders can buy at 5510 and risk a close under 5410 for three days in a row. Below that support should appear near 5210 to 5200 and the 5140 to 5125 region

Pick Your Poison ..Trade Accordingly and stay tuned for updates.

The Lively Livestock Markets

Daily Feb Live Cattle

February Live Cattle
Recommended open position, short 6987
Nearby Support should appear near 7072, a close under augurs for a test of 7002 to 6992 and eventually the 6922 to 6907 region .. Below that buyers should appear near 6837 to 6807 .. Traders can buy at 6837 for a bounce , risk a close under 6807 for three days in a row.. Below that support should appear near 6757 to 6742.. .. Failure there augurs for a test of the 6672 to 6657 region, which should contain a decline.
Resistance is at 7117 and the 7142 to 7172 region.Beyond that resistance should appear near 7242 to 7257..Above that sellers should appear near 7322 to 7342.and cap a rally .
                            Aggressive Traders should go short if a close under 7072 occurs..

The All important Pig Crop came in a bit under the general expectations at 99 % of last year across the board..
Expectations were established when the hogs were sitting about 250 to 300 pts lower than Friday's close ..As a surge in prices over the past several sessions brought the Feb Hogs to Highest close since Mid September..

It should be interesting how the mkt takes the report. Considering the numbers we issued for the previous quarterly report on
Sept 28 report and the USDA's actual numbers released on September 28th were also 99 across the board, the same as Friday's
(Something we expected at that time.)

However on the following Monday Oct 1st Feb Hogs hit 5655 about where they are now, then proceed to drop down to under 50.00 buy the end of October as the Dec Contract fell apart under heavy weights and slaughters.. which compelled me to up my numbers a bit this time around.. ..

Notwithstanding another situation like that I would say Friday's report was friendly to the Hog mkt, but may not be as
Price friendly as the rampant longs want and I would use any decent 100 to 200 set back to establish longs ...as my opinion has not changed on the prospect for decent late winter /early spring and eventually higher summer prices.

                                                avg.est    Range             Actual    FuturesCom
All hogs and pigs on Dec 1        99.9        98.9-101.0         99          101
Kept for breeding                      99.3        98.5-101.5         99           100
Kept for marketing                   100.1       99.0-101.0         99           101

Daily Feb Lean Hogs

February Lean Hogs
Nearby Support is at 5577 to 5552 and the 5507 to 5490 region.. Traders can buy at 5507and risk a close under 5417 for three days in a row. Below that buyers should emerge near the 5357 to 5342 region and contain a decline. Under that support should appear near 5282 to 5257 and the 5212 to 5197 level.
Resistance is at 5717 to 5742 and the 5792 to 5807 region..beyond a trade towards the 5942 to 5957 region..
is likely,,,Beyond that sellers should appear near 6022 to 6037..   Traders should go long if a close over 5657 occurs.

Stay tuned for Updates and new trades in the Hogs..

Daily April Hog Futures

April Hogs
Nearby Support is at 5880 to 5855, a close under is negative and augurs for a test of the 5757 to 5742 region , under that buyers should appear near 5657 to 5642.. Traders can buy at 5647 and risk a close under 5552 for three days in a row. Below that buyers should emerge near the 5407 to 5492 region and contain a decline.
Resistance is at 5942 to 5957 and the 6022 to 6037 region.. .beyond a trade towards the 6102 to 6112 region is likely..
Above that sellers should appear near 6162 to 6192 and the 6257 to 6272 region.. .Beyond that a test of 6337 to 6352 is likely..

Aggressive Traders should go long if a close over 5957 occurs.

Daily Feb Bellies

February Pork Bellies
Recommended open position , short 8192
Support should appear near 8047 to 8022 and the 7957 to 7932 region.Under that buyers should appear near 7867 to 7837 and the 7777 to 7762 region Traders can buy at 7777and hold for higher prices.. Under that Buyers should appear near 7692 to 7672 and the 7602 to 7587 region..Traders can buy at 7602 for a bounce and risk a close under 7487 for three days in a row.
Nearby Resistance is at 8192 to 8227 and the 8302 to 8317 region. Beyond that sellers should appear near 8392 to 8407 and 8482 to 8497. Above that sellers should appear near 8557 to 8587. Beyond that 8762 to 8777 should Cap a rally for bit..

-Stay tuned for Livestock and Belly Updates and Flashes-

The ‘Grand’ Grain Markets

Daily March Soybeans

March Soybeans
Recommended open position long at 432
Resistance is at 430 to 431 1/2 and the 437 to 438 1/2 region.. a close over is friendly and augurs for a test of 442 1/2
to 444 3/4. Beyond that a trade towards the 457 1/4 to 458 1/4 region is likely.
Support should appear near 425 to 423 1/2 and should contain the decline.. Under that support is at 412 to 411 and the 399 1/4 to 398 1/2 region.. Below that 392 3/4 to 390 3/4 should hold. Traders go long if a close over 438 1/2 occurs.

Daily March Soybean Meal

March Soybean Meal
Support should appear near 142.1 to 141.5under that 138.3 to 137.7 should contain a decline..

Resistance is at 145.3 to 145.9 and the 148.4 to 149.6 region.
Beyond that a test of 152.9.to 153.6.is likely.

Daily Soybean Oil Futures
.
March Soybean Oil
Support is near 1535 to1529. Under that buyers should emerge near 1496 to 1484 and the 1459 to 1453 region
Resistance should appear near the 1569 to 1576 , a close over is friendly and augurs for a test of 1609 to 1615 and the 1642 to 1655 region. Beyond that a test of 1689 to 1696 and eventually the 1731 to 1738 region is likely.

Traders should go long if a close over 1576 occurs.

Trade Accordingly..

Daily March Corn Futures

March Corn
Resistance should appear near 210 1/2 and 212 3/4 to 213 1/2, an extended trade over augurs for a test of 217 to 218 1/2 and eventually the 221 3/4 to 222 3/4 region. .

Nearby Support is at 208 3/4 to 208 and the 204 1/4 to 203 1/2 region.. Under that buyers should appear near 199 3/4 to 198 1/2 and the 191 to 190 1/4 region . Traders can buy at 191 1/4 for a turn higher and risk a close under 184 3/4 for three days in a row...

Weekly Wheat Futures

March Wheat
Recommended Open Position , long 293
Nearby Support should appear near 288 1/4 to 287 1/2 and 282 3/4 to 282.. Traders can buy at 282 3/4 hold for higher prices.. Below that buyers should appear near the 277 3/4 to 275 1/2..region... Under that 272 1/2 to 271 3/4 should contain a decline..
Failure there is negative and augurs for a test of 267 1/2 to 266 and the 262 to 261 1/4 region..

Resistance is at the 292 3/4 to 293 3/4 region. A close over is friendly and augurs for a test of 297 1/2 to 299 and eventually the 303 3/4 to 304 1/2 region Beyond that a test of 309 1/2 to 310 1/4 is likely..

Buy Dips .

Traders should go long if a close over 293 3/4 occurs..

The Satisfying Softs

Monthly Cotton Futures

March Cotton
Nearby Support should appear near 3555.Under that buyers should appear near 3445 to 3425. Below that 3390 to 3370 should hold

Resistance is at 3665 to 3680 and the 3730 to 3745 region..A close over is friendly and augurs for a test of 3855 to 3865.Beyond that resistance should appear near the 3982 to 3992 region.

Weekly Coffee Futures

March Coffee
Recommended open position, long 4960
Nearby Support is near the 4585 to 4570 region... Under that support should appear near 4515 to 4505 and 4445 to 4425 .. Below that buyers should appear near 4315 to 4305..
Traders can buy at 4305 for a turn higher and risk a
close under 4160 for three days in a row..

Nearby Resistance should appear near 4635 to 4650 and the 4695 to 4715 region, a close over 4715 is friendly augurs for a test of 4845 to 4855 and the 4915 to 4925 region.. Beyond that a test of 5035 to 5065 is likely.

Aggressive Traders should go long if a close over 4715 occurs. .

Stay tuned for updates

Daily Sugar Futures

March Sugar
Resistance should appear near 751, a close over is friendly and augurs for a test of 763 to 767 and 791 to 795, beyond that a
resistance is at 814 to 823 and the 847 to 852 region..Above that a test of 877 to 882 is likely..Traders can sell at 876 for a turn lower risk a close over 883 for three days in a row.
Support should appear near 735 and 723....Traders can buy at 724 and risk a close under 704 for three days in a row.. Below that buyers should appear near 712 to 704 and the 686 to 682 region.


                                               Traders should go long if a close over 752 occurs.

Trade Accordingly

Monthly Cocoa Futures

Cocoa futures ended with mild gains Friday after an early rally to the highest levels in over a week died out...
Heavy new-crop arrivals at Ivory Coast ports should keep a bit of pressure on the mkt. In the Ivory Coast, purchases of new-crop cocoa are reportedly running 25% ahead of a year ago as the 2001-02 main harvest advances and Farmers are bringing whatever they can to the mkt to take advantage of favorable prices. Newly harvested cocoa has moved rapidly from the African countryside
to ports in December, with more to arrive in January. Arrivals at Ivorian ports should slow in mid-February. African mid year harvests begin in the spring. In Mid to late January The market will get an update on consumption from fourth-quarter 2001 grind figures for European countries and the U.S. If the Bulls get lucky World stocks may fall below one million tonnes at the end of 2001-02 as demand should exceed production for the second season in a row. ...........Bulls should Go Eat Candy and Drink Hot Cocoa !!

March Cocoa
Resistance is at 1334 to 1346 .Beyond that a test of 1377 to 1383 is likely Above that sellers should appear near
1415 to 1421.. Beyond that 1453 to 1459 should cap the rally for a bit.. Traders can sell at 1452 and hold for lower prices.. Risk a close over 1496 for three days in a row.. Above that sellers should appear near 1529 to 1535..

Support should appear near 1304 and 1289 under that buyers should appear near 1274 to 1268.. Below that support should appear near 1238 to 1232 and the 1203 to 1192 region.. Traders can buy at 1276 and risk a close under 1232 for three days in a row,...Below that Support should appear 1169 to 1164

A Ship in Harbor is Safe.. But that's not what ships are built for --

Happy Trading and Have a Safe and Happy New Year !
Bill
bill@futurescom.com

1--561-433-2995

Sunday December 30th 2001
1:25 PM

THIS PUBLICATION CONTAINS THE VIEW AND OPINIONS OF THE AUTHOR, EXCEPT WHERE OPINIONS
ARE ATTRIBUTED TO OTHER SOURCES. WRITTEN PERMISSION IS REQUIRED PRIOR TO ANY DISTRIBUTION OR REPRODUCTION. FUTURES TRADING ARE RISKY AND CAN CAUSE SUBSTANTIAL FINANCIAL LOSS. THE USE OF OPTIONS AND OPTION TRADING INVOLVES A HIGH DEGREE OF RISK. THE USE OF STOPS MAY NOT LIMIT LOSSES TO INTENDED AMOUNTS. SPREAD POSITIONS MAY NOT BE LESS RISKY THAN OUTRIGHT FUTURES POSITIONS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. SOURCES ARE BELIEVED TO BE RELIABLE BUT NO ASSURANCE IS MADE FOR ACCURACY. ADDITIONAL RISK DISCLOSURE IS AVAILABLE.

-----------------------------------------------------------------------------------------
Premier Service
http://www.futurescom.com/premier.htm
Recommended Open Positions as of 12-28-2001
Short 4 March SP500 1129.00
Long 5 Feb Gold 279.8
Short 4 Feb Bellies 7990
Long 20 March Soybeans Beans 437 1/2
Long 10 March Bean Oil 1580
Long 10 March Wheat 285 3/4
Long 5 March Coffee 4740

Index Program
http://www.futurescom.com/index01.htm
Recommended Open Position as of 12-28-2001
NONE

Morning Comment Day Trades (MC):
http://www.futurescom.com/mcper01.html