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.


Next update: Wednesday, November 10, 1999.

(Check “Today’s Schedule” every day on our home page to find out about additional updates.)