Shorting Opportunities In The T-bond and S&Ps
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 117-05 | 116-28 | $281.25 |
| Sep. 99 S&Ps | Short | 1429 | 1410 | $4750 |
| Sep. 99 Swiss franc | Short | .6590 | .6585 | $62.50 |
CURRENT POSITIONS (AS OF 7/28/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | 7/28/99 | Short | 115-28 | 116-20 | – |
| Sep. 99 S&Ps | – | Flat | – | – | – |
| Sep. 99 Swiss franc | – | Flat | – | – | – |
Note: All price levels are approximate.
T-bond futures
The September futures [USU9>USU9] were little changed today as Greenspan’s speech was a non-event. He reiterated last week’s speech and the market chose to wait for the Employment Cost Index and the Gross Domestic Product numbers due out tomorrow morning.
This morning’s Durable Goods report provided a brief rally that was promptly sold off by the bears. Our indicators and analysis led us to establish a short position at the close at the 115 28/32 area. Stops are in at the 116 20/32 area.
S&P 500 futures
The September contract [SPU9>SPU9] was up today after investors were relieved that Greenspan did not make any more surprising comments about the future of interest rates. We believe this latest rally is just a correction in a medium-term downtrend. Corporate profits are largely out of the way and the market is paying close attention to interest rates. As a result we will look to go short in the near future. Stay tuned.
Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] were slightly higher today as the market finally realized that Greenspan was not going to say anything new. The large funds have been heavily short the Euro until recently. Now they have begun to cover those short positions and are beginning to go long Euros as they have decided that the trend has changed.
Next scheduled update: Friday, July 30, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)