Markets Tense As FOMC Nears
| CURRENT POSITIONS (as of 5/17/99) | ||||||
|---|---|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target | Exit | P/L (per contract) |
| June T-bonds | Flat | – | – | – | – | – |
| June S&Ps | Flat | – | – | – | – | – |
| June Swiss franc | Flat | – | – | – | – | – |
Note: All price levels are approximate.
S&P 500 futures
We covered our short position in the June contract [SPM9>SPM9] on the open today (around the 1335 level) and moved to the sidelines ahead of tomorrow’s FOMC meeting. Tomorrow will be a buy day if we get a sell-off after the Fed meets (assuming they don’t raise rates more than a half point].
T-bond futures
The June futures [USM9>USM9] were little changed today as the market waits for the outcome of tomorrow’s FOMC meeting. Any sell-off tomorrow will be a short-term buying opportunity–whether the Fed changes rates or not (we anticipate a relief rally). However, keep in mind this move will be strictly short term (one to two days). If the Fed raises rates by more than a quarter point, we will not go long.
Currency futures
The June Swiss franc [SFM9>SFM9] and Euro [ECM9>ECM9] were quiet as well. Like the bonds, the currencies await the Fed meeting tomorrow. But unlike the bonds, we will remain on the sidelines tomorrow regardless of what the market does, as the picture is less clear here because of the the Balkans problem and the technical picture.
Next scheduled update: Wednesday, May 19, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)