Look Long On The S&Ps
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 115-28 | 114-30 | $937.50 |
| Sep. 99 S&Ps | Short | 1429 | 1410 | $4750 |
| Sep. 99 Swiss franc | Short | .6590 | .6585 | $62.50 |
CURRENT POSITIONS (AS OF 8/4/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | 8/2/99 | Long | 115 | – | 115-07 |
| Sep. 99 S&Ps | – | Flat | – | – | – |
| Sep. 99 Swiss franc | – | Flat | – | – | – |
Note: All price levels are approximate.
T-bond futures
Note: A long position was established on Monday, Aug. 2, but not reflected in Monday’s update. Although the position was liquidated today (see below), we have included a chart and left the position in the current positions table above.
The September futures [USU9>USU9] rallied a little today after recovering from the Factory Orders report that came in stronger than expected. Later, however, Secretary Treasury Summers stated that the Treasury will reduce the number of bonds it issues and will consider buying back some of outstanding bonds now to reduce the interest rate costs for the government. This got the bulls going and the T-bond rallied; we exited our longs (@ 115) for a small profit.
 |
| Figure 1. September T-bond futures (USU9), 10-minute bar. Source: FutureSource.
|
S&P 500 futures
The September contract [SPU9>SPU9] dropped again on rate worries. Friday’s Employment report will be closely watched and will greatly influence this market (as well as the others). However, if we see further weakness tomorrow on secondary reports we will look to establish a long position going into Friday’s report. Position size will be half our normal size. We see a good chance of a relief rally coming up, with the risk reward ratio favoring a long trade. Stay tuned.
Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] made new highs on the move as more good news from Europe triggered buying last night. French consumer confidence continued to strengthen, which implies higher rates there in the future. This would attract buyers to the Euro to get those higher returns for their assets. In addition, further weakness in U.S. stocks continued to drive capital out of the U.S. and back to Europe.
Next scheduled update: Friday, August 6, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)