Favorable PPI Means Be On The Lookout for T-bond Buy Opportunities

T-bond futures

Short-term perspective: We covered our short position in the June futures [USM9>USM9]
yesterday at the 120 17/32 level. Bonds got a boost this morning from the Producer Price
Index (PPI), which showed a .4% decline and eased fears somewhat of higher rates down the line,
but we’ll need more confirmation to get the market back on a steady uptrend.

Currency futures

Short-term perspective: We covered our shorts in the June D-Mark [DMM9>DMM9] yesterday
(the market formed a large-range day). Volatility is increasing and should provide us with
more good trades.

S&P 500 futures

We continue to wait for a low-risk entry point to establish a short trade in the June
futures [SPM9>SPM9]. The market is showing upside resiliency as the bulls quickly
buy up each sell-off. However, we don’t want to establish a long trade either right now because
the risk is too high.

Next scheduled update: Monday, March 15, 1999

(Check “Today’s Schedule” every day on our home page to find out about additional updates.)