Market Shows Good Strength in Light of Recent Bond Weakness
| size=3 helvetica>CURRENT POSITIONS (AS OF 12/01/99) | |||||
|---|---|---|---|---|---|
| size=2>Market | Helvetica>Date | size=2 Helvetica>Long/Short | size=2 Helvetica>Enter | size=2 Helvetica>Stop | Helvetica>Target |
Dec. 99 T-Bonds | Flat | ||||
Dec. 99 | 12/01/99 | Long | 1395 | 1375 | 1420 |
Dec. 99 Swiss | 11/08/99 | Short | .6478 | .6590 | Helvetica>- |
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color=#008080>Bonds
The March bond contract [ush0>ush0] is in a
steady downtrend. There were comments made Tuesday night by a Fed governor which
pressured the market. His remarks were just a reiteration of the Fed’s concern
over the strong economy. Then the National Association of Purchasing
Managers’ manufacturing survey came out Wednesday which showed buying activity increasing for
November, but a slower pace than expected. The rally was short- lived, however.
We continue to be on the sidelines waiting for a low- risk entry
point.
| “The (stock) market is showing good strength in light of the recent weakness in the bond market.” |
Currencies
December Swiss francs [sfz9>sfz9] continue to be in a downtrend as
the higher growth prospects for the U.S. economy continue to favor U.S. dollars.
Friday’s jobs report could cause a correction in this downtrend as some of the
short positions are covered. This market is very short right now and any excuse
to take some profits will be used.
style=”TEXT-TRANSFORM: capitalize”>Stocks
December S&Ps
[spz9>spz9] are up at the moment (1:30 p.m. ET) on a rebound in the tech
stocks. We are going long at the 1395 area as the market is temporarily
oversold. We will try to exit the trade before Friday’s jobs report unless we
have a decent profit cushion. Stops in at the 1375 area; profit target if we can
get it before Friday is 1420. The market is showing good strength in light of
the recent weakness in the bond market.Â
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Next update: Friday, December 3,
1999.