Quiet As Markets Adjust
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 115-23 | 115-06 | $531.25 |
| Sep. 99 S&Ps | short | 1380 | 1400 | -$5000 |
| Sep. 99 Swiss franc | Long | .6530 | .6580 | $625 |
CURRENT POSITIONS (AS OF 7/7/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | – | Flat | – | – | – |
| Sep. 99 S&Ps | – | Flat | – | – | – |
| Sep. 99 Swiss franc | – | Flat | – | – | – |
Note: All price levels are approximate.
T-bond futures
We covered our position in the September futures [USU9>USU9] yesterday for a profit. There was not much news today, except for talk of more corporate debt to be issued soon. The more debt corporations issue, the more Treasuries have to compete for investors.
We are on the sidelines for now. Bonds should trade in a range for the next couple of weeks as investors evaluate the economic reports and contemplate how the Fed might interpret them. If these reports show the economy still stronger than expected, the Fed will most likely raise again.
 |
| Figure 1. September T-bond futures (USU9), 15-minute bar. Source: Quote.com.
|
S&P 500 futures
We are still flat. The September contract [SPU9>SPU9] rallied again today. Earnings announcements probably will produce some volatility, which could create some opportunities. The volatility and price action has been particularly confusing lately, but we feel that we will get some good trades again soon.
Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] fell slightly on political rumors about France and their involvement in the European Union. We do not believe this is a possibility as the EU will help all countries, including France. Furthermore, the European Central Bank has stated it has no intention of buying Euros to stem its weakness. We don’t buy this either and we feel they will surprise the market in the near future. The pressure to intervene has been mounting. We will look to go long if we see some more weakness as we usually go against political comments in our trading.
Next scheduled update: Friday, July 9, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)