Discipline Important As Low-risk Trades Scarce
T-bond futures
June T-bonds [USM9>USM9] saw a little follow-through from Friday’s sell-off. The only “news”
today was continued rumors of the AT&T bond deal (and how big it actually will be).
This will be the largest bond offering ever by a U.S. company, and it is putting a little
pressure on the T-bond market. We covered our short position on Friday and are waiting for
another trade opportunity.
Currency futures
As mentioned last Friday (March 19), we will swap our short June D-mark [DMM9>DMM9] position
into the June Swiss franc [SFM9>SFM9] today.
The currency markets are quiet today; Japan was closed yesterday and there are no important
reports from Europe. We are holding a long-term short position in the Swiss franc, but
short-term we are flat.
S&P 500 futures
Once again, we have been on the sidelines for some time in the June S&P [SPM9>SPM9] because
of a drought of low-risk entry points. While this can be very frustrating, it requires
discipline to wait until you see just the right trade
opportunity. You never want to trade just for the sake of trading.
Next scheduled update: Wednesday, March 24, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)