Look To Sell T-bond Rally
| CURRENT POSITIONS (As of 4/21/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| June T-bonds | Flat | – | – | – |
| June S&Ps | Flat | – | – | – |
| June Swiss franc | Long | .6675 | .6600 | .6725 |
Note: All price levels are approximate.
S&P 500 futures
We sold our longs (@1304) in the June S&P [SPM9>SPM9] today at the 1319 level for another good trade. The current volatility provides our favorite trading environment, but for now we see no good opportunities. No position.
Figure 1. June S&P futures (USM9), 15-minute bar. Source: Quote.com.
T-bond futures
We exited our longs (@121 22/32) in the June futures [USM9>USM9] on Tuesday’s after hours session at the 122 level. Bonds are acting very well even though stocks have rebounded from Monday ‘s sell-off. We will remain on the sidelines for now but will be looking to sell a rally in the 123 level in the next two sessions. There were no market-moving reports out today.
Figure 1. June T-bond futures (USM9), 30-minute bar. Source: Quote.com.
Currency futures
The June ECU [ECM9>ECM9] and June Swiss franc [SFM9>SFM9] were slightly lower today on pressure from the Balkans and interest in the U.S. dollar after the stock market bounced here. We took a long position in Swiss Franc today as our research indicates a high probability for range-bound trading in the next couple of sessions. In addition, any let up in the Balkans will trigger a rally in these currencies. We went long at .6675, with a stop at .6600. We will look to exit at the 6725 area in the next session or two.
Figure 1. June Swiss franc futures (SFM9), 15-minute bar. Source: Quote.com.
Next scheduled update: Friday, April 23, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)