Opportunity In The S&Ps
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 114-05 | 113-09 | -$875 |
| Sep. 99 S&Ps | Long | 1330 | 1342 | $3000 |
| Sep. 99 Swiss franc | Long | .6530 | .6580 | $625 |
CURRENT POSITIONS (AS OF 6/30/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | 6/30/99 | Short | 115-23 | 116-21 | 114-24 |
| Sep. 99 S&Ps | 6/30/99 | Short | 1380 | 1400 | 1372 |
| Sep. 99 Swiss franc | – | Flat | – | – | – |
Note: All price levels are approximate.
T-bond futures
The September futures [USU9>USU9] rallied today after the Fed hinted it would not look to raise rates in the future (they hiked rates the expected .25%). This was a relief as the market was expecting another increase at the next meeting. Keep in mind that these comments from the Fed were just that–comments. However, they were enough to bring the bulls out. We established a short position at the 115 23/32 area with stops in at the 116 21/32 area. Stay tuned for the profit target.
 |
| Figure 1. September T-bond futures (USU9), 15-minute bar. Source: Quote.com.
|
S&P 500 futures
The September contract [SPU9>SPU9] rallied today after the Fed remarked (see bond commentary) they are not leaning toward raising rates at the next meeting (but are not guaranteeing they won’t). Nonetheless, a relief rally is here. We established a half-size short at the 1380 area with a stop in at the 1400 area. Our position is smaller due to increased volatility. Check back for the profit target.
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| Figure 2. September S&P futures (SPU9), 15-minute bar. Source: Quote.com.
|
Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] were little changed today as the market had already factored in the 25 basis point hike. It was surprising they did not rally (like the bonds and S&Ps) after the Fed’s comments. We suspect that a trading range is being formed, which is supported by the current decrease in volatility.
Next scheduled update: Friday, July 2, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)