Strong T-bond Rally Means Pullback Opportunity
T-bond futures
A 17-tick up move in the June T-bonds [USM9>USM9]
and the absence of economic reports provided us with a
shorting opportunity at the 121 22/32 level. I suspect today’s rally will fade in the next day
or two, giving us a chance to cover at the 121 10/32 level. The market should remain quiet
until Thursday’s CPI report.
Currency futures
The June D-Mark [DMM9>DMM9] had a quiet day, although it does
seem to want to form a bottom at these
levels. Now that Germany’s finance minister resigned, the market has become a little more
bullish. (He caused some worries concerning his economic policies for Germany and the Euro.)
We will sit on the sidelines for now.
S&P 500 futures
The June S&P [SPM9>SPM9] continues to show strength. The stock market seems psychologically
driven to get to 10,000 on the Dow, and the firmer bond market also is helping.
It is worth noting that famed investor Warren Buffet make comments about having trouble
finding value in the market. The market did not seem to pay attention to his comments as it
has in the past. We still have no low-risk entry points and will wait for a trade opportunity
to emerge.
Next scheduled update: Wednesday, March 17, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)