Look for a Pullback In June D-mark
T-bond futures
June T-bonds [USM9>USM9] were off today by 16 ticks. The Fed’s Beige Book, a report on
regional economic conditions, showed prices for goods and
services little changed. This was favorable for the bonds, not to mention for
the New York Feb buying bonds outright.
Treasury Secretary Rubin also made comments
that should have supported the Bonds, but the market didn’t take any this news too
seriously–the longs opted to take profits.
This underscores the fact that although there are numerous economic reports
released, you have to be aware of which ones are really important.
We’re still short from Monday and are looking to cover at the
121 19/32 level tonight in Project A (the Chicago Board of Trade’s electronic trading
system) or tomorrow.
Currency futures
Currencies
The June D-Mark [DMM9>DMM9] rallied slightly, and we established a short position at the .5660
level today. We are expecting a pullback to the .5600 level as the market again
gets pressured by the shorts after the rally off the lows.
S&P 500 futures
The press hyped the 10,000 Dow story, and the market traded there for a second or
two. The June S&P [SPM9>SPM9] contract is really in a psychological game right now. The
public wants and expects 10,000 on the Dow, but I suspect the market will
sell off as a result of this. However I have no position and will wait until I get a
better entry point.
Next scheduled update: Friday, March 19, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)