Market Remains Strong with Support from Tech Stocks
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Dec. 99 T-bonds | Short | 114-22 | 114-09 | $406.25 |
| Dec. 99 S&Ps | Short | 1378 | 1362 | $4000 |
| Dec. 99 Swiss franc | Long | .6550 | .6500 | -$625 |
CURRENT POSITIONS (AS OF 11/10/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Dec. 99 T-bonds | 11/10/99 | Long | 114-05 | 113-02 | 115 |
| Sep. 99 S&Ps | 11/5/99 | Short | 1376 | 1395 | 1362 |
| Dec. 99 Swiss franc | 11/8/99 | Short | .6478 | .6590 | – |
Note: All price levels are approximate.
T-bond futures
The December T-bond [USZ9>USZ9] was slightly down today on the PPI report this morning. The market was focused on the core PPI, which excludes food and energy. It rose .3%, which was higher than expected. This, combined with the recent rally, gave the bulls a reason to take some profits.
We exited our short position on Tuesday at our profit target. We still view the market in a medium-term uptrend and we established a long position near the close at the 114 05/32 area, with stops in at the 113 02/32 area and profit target back up at the 115 area.
Stock index futures
The December S&Ps [SPZ9>SPZ9] were down earlier this morning on the negative PPI but then quickly rebounded. The market has been strong, with support coming from the tech stocks.
We are exiting our shorts tonight on the Globex session as this trade has gone “stale” on us. The market has not done what we expected and often the best thing to do in such circumstances is to exit and wait for another trade. We our exiting our trade now, 5:20 PM ET, at the 1379.50 area.
Currency futures
The December Swiss franc [SFZ9>SFZ9] was up today on some short-covering. Some European Central Bank officials commented they aren’t concerned about the level of the Euro despite its recent down move. We still view this market in a downtrend.
Next update: Friday, November 12, 1999.
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)