Euro Currencies Remain Down
| PREVIOUS POSITIONS | ||||||
|---|---|---|---|---|---|---|
| Market | Long/Short | Entry | Exit | P/L (per contract) | ||
| June T-bonds | Long | 117 14/32 | 116 15/32 | -$968.75 | ||
| June S&Ps | Long | 1312 | 1285 | -$6,750 | ||
| June Swiss franc | Long | .6555 | .6575 | $250 | ||
| CURRENT POSITIONS (as of 6/7/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| September T-bonds | Long | 116-06 | 115-05 | 116-29 |
| June S&Ps | Short | 1328 | 1350 | 1327 |
| June Swiss franc | Flat | – | – | – |
Note: All price levels are approximate.
S&P 500 futures
The June S&Ps [SPM9>SPM9] rallied on follow-through from Friday. We will try to cover tomorrow at the 1327 area for a small profit. The market is acting stronger than we anticipated as investors are relieved that Friday’s report was not more bearish for bonds.
Volatility levels are moderate and we have no strong indication that we will see a big move. That is why we have reduced our profit target for a move to the sidelines.
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| Figure 1. June S&P futures (USM9), 15-minute bar. Source: Quote.com.
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T-bond futures
The September futures [USU9>USU9] fell slightly today as the market is waiting for Friday’s Producer Price Index. Until then, we are likely to trade sideways. Our indicators suggest a small rally from this point, so we took a long position at the 116 06/32 area with stops in at the 115 05/32 area and a profit target around 116 29/32 area. Volatility should remain low until Friday.
Currency futures
The June Swiss franc [SFM9>SFM9] and Euro [ECM9>ECM9] dropped today on the failure of the Kosovo peace talks. Until the talks are successfully concluded the European currencies will continue to be under pressure. Later this week the German government is going to release economic reports that could impact the market. Stay tuned.
Next scheduled update: Wednesday, June 9, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)
