Euro and S-franc Opportunities Coming
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 115 | 115-15 | -$500 |
| Sep. 99 S&Ps | Long | 1322 | 1320 | $-5500 |
| Sep. 99 Swiss franc | Long | .6525 | .6540 | $187.50 |
CURRENT POSITIONS (AS OF 6/21/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | – | Flat | – | – | – |
| Sep. 99 S&Ps | 6/16/99 | Short | 1342 | 1367 | 1345 |
| Sep. 99 Swiss franc | – | Flat | – | – | – |
Note: All price levels are approximate.
T-bond futures
The September futures [USU9>USU9] dropped moderately today on profit taking and rumors of hedging by companies issuing debt this week. We were expecting a dip today and covered our shorts at the 115 15/32 area for a small loss.
The market is already expecting a 25 basis point hike but is focused on any potential comments from Greenspan on possible future hikes. We will look to buy tomorrow on further weakness. Stay tuned.
 |
| Figure 2. September T-bond futures (USU9), 15-minute bar. Source: Quote.com.
|
S&P 500 futures
The September contract [SPU9>SPU9] rallied today. The market almost reached our profit target but we remain short. The tech rally today helped the S&P 500, but the Dow cooled things off a bit. The S&P 500 has been much stronger than we forecasted and our 1367 area stop is very close. Keep watching.
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| Figure 1. September S&P futures (SPU9), 15-minute bar. Source: Quote.com.
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Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] dropped today on political comments from ECU officials. There were concerns about Italy’s economic health and lack of compliance with the guidelines for the European union.
We will try to go long on further weakness because our research indicates range-bound trading ahead. We also believe comments from political figures usually provide good trading opportunities.