Longs Look Promising in T-bonds and S&Ps
T-bond futures
The June futures [USM9>USM9] were unaffected by the Business inventories report, which showed a .4% increase. Bonds seemed to have found a new range between 120 to 123 levels (basis USM9).
The market is divided by the bears, who argue the economy is heating up, and the bulls, whose position is given some support as
the NATO operation in the Balkans picks up some steam. Tomorrow (Thursday, April 15) we will try to establish long positions at the 121 16/32 level.
Currency futures
The June ECU [ECM9>ECM9] and June Swiss franc [SFM9>SFM9] both were modestly higher today on short covering. Any escalation in the Balkans will quickly drive these contracts down to new lows. It is a very political market right, now but we are still flat for now.
S&P 500 futures
We covered our shorts in the June S&P [SPM9>SPM9] at the 1352 level for a decent short profit. We will look to buy tomorrow depending on how the market reacts on a sell-off. If we get a bigger increase in the VIX index we will want to fade it and go long the SPM9.
Next scheduled update: Friday, April 16, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)