Microsoft has Short-Lived effect on S&Ps
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Dec. 99 T-bonds | Short | 113-15 | 114-19 | -$1156.25 |
| Dec. 99 S&Ps | Short | 1378 | 1362 | $4000 |
| Dec. 99 Swiss franc | Long | .6550 | .6500 | -$625 |
CURRENT POSITIONS (AS OF 11/8/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Dec. 99 T-bonds | 11/05/99 | Short | 114-22 | 115-14 | 114-09 |
| Sep. 99 S&Ps | 11/05/99 | Short | 1376 | 1395 | 1362 |
| Dec. 99 Swiss franc | 11/8/99 | Short | .6478 | .6590 | – |
Note: All price levels are approximate.
T-bond futures
| The recent rally has been incredible, but the chances of short-term continuation are diminishing |
The December T-bond [USZ9>USZ9] dropped slightly today on profit taking. The market has been surprisingly strong and we our moving our profit target up to the 114 09/32 area. Later in the week (Wednesday) we will get the Producer Price Index (PPI), followed by the Consumer Price Index (CPI) next week. Stay tuned.
 |
| Figure 1. December T-bond futures (USZ9), 15-minute bar. Source: Quote.com.
|
Stock index futures
| The Microsoft effect mainly impacted last night’s Globex session |
The December S&Ps [SPZ9>SPZ9] are hardly down at the moment (3:12 PM ET). The Microsoft effect was very short-lived, and mainly made its presence felt last night on the Globex session.
The drop to 1362 overnight met our profit target, but we were not trying to get out on Globex. We will try again tomorrow, but we will be quick to exit; the market has taken this news well and seems to be stronger going into the close.
 |
| Figure 1. December S&P futures (SPZ9), 15-minute bar. Source: Quote.com.
|
Currency futures
| We will look to short more at the .6550 area |
The December Swiss franc [SFZ9>SFZ9] fell slightly today as the market seems to be in a downtrend. There were no reports to speak of today; the Microsoft issue took center stage–even if it has not turned out to be as important as most people would have thought.
We established a short position on the close at the .6478 area, with stops in at the .6590 level; we will look to short more at the .6550 area. There is no profit target for the moment.
 |
| Figure 1. December Swiss franc futures (SFZ9), five-minute bar. Source: Quote.com.
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Next update: Wednesday, November 10, 1999.
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)