Euro/S-franc Rally Done
| PREVIOUS POSITIONS | ||||||
|---|---|---|---|---|---|---|
| Market | Long/Short | Entry | Exit | P/L (per contract) | ||
| June T-bonds | – | – | – | – | ||
| June S&Ps | Long | 1330 | 1317 | -$3,250 | ||
| June Swiss franc | – | – | – | – | ||
| CURRENT POSITIONS (as of 5/25/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| June T-bonds | Short | 118 5/32 | 119 5/32 | 118 08/32 |
| June S&Ps | Long | 1312 | 1275 | 1320 |
| June Swiss franc | Long | .6600 | .6500 | .6640 |
Note: All price levels are approximate.
S&P 500 futures
The June contract [SPM9>SPM9] was down today. We initially bought at the 1330 level intraday but were stopped out around 1317 level. We still view this market as being in a trading range as everyone waits for more clues regarding inflation. Volatility levels are still reasonably low. This combination leads us to conclude a high probability for continued range-bound action. We took another long position at the close around 1312.
UPDATE, 5/25/99: We are still long from Monday. We believe the market is oversold and tomorrow (Wednesday, May 26) it will rally. Our stop is in at the 1275 area and our profit target is around 1320.
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| Figure 1. June S&P futures (USM9), 5-minute bar. Source: Quote.com.
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T-bond futures
The June futures [USM9>USM9] changed little today. There were no reports of interest and technical buying continued after Friday’s rally. We believe we are still in for more range-bound trading in the next week or so. We will try to cover our shorts at the 118 8/32 level.
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| Figure 2. June T-bond futures (SFM9), 30-minute bar. Source: Quote.com.
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Currency futures
The June Swiss franc [SFM9>SFM9] and Euro [ECM9>ECM9] were up today. We will try to exit our position at the .6640 level as volume was very light today due to the holiday in Germany. We suspect that most of the buying was short covering. We still interpret the intermediate trend as down because of the strong U.S. economy and the less healthy European economies.
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| Figure 3. June Swiss franc futures (SFM9), 15-minute bar. Source: Quote.com. |
Next scheduled update: Wednesday, May 26, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)