Reversal On S&Ps Imminent
| PREVIOUS POSITIONS | ||||||
|---|---|---|---|---|---|---|
| Market | Long/Short | Entry | Exit | P/L (per contract) | ||
| June T-bonds | Long | 117 14/32 | 116 15/32 | -$968.75 | ||
| June S&Ps | Long | 1312 | 1285 | -$6,750 | ||
| June Swiss franc | Long | .6555 | .6575 | $250 | ||
| CURRENT POSITIONS (as of 6/2/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| June T-bonds | Flat | – | – | – |
| June S&Ps | Flat | – | – | – |
| June Swiss franc | Flat | – | – | – |
Note: All price levels are approximate.
S&P 500 futures
We remain flat in the June S&P contract [SPM9>SPM9]. The market is in a downtrend as interest rates continue to pressure the stock market. We look for a buying opportunity in the next day or two as the market begins to get oversold.
T-bond futures
The June futures [USM9>USM9] fell sharply Tuesday, stopping us out of our long position. The market sold off after yesterday’s NAPM report was much stronger than expected.
Today’s New Home Sales report was a little stronger than expected as well, which initially put pressure on the bonds this morning. Later in the day the market tuned into Fed Chairman Greenspan’s speech in Boston for clues about future interest rate hikes. When none were forthcoming, the market seemed somewhat relieved and rallied off its lows as the market.
These reports are in line with our longer-term view of a strengthening economy. We are on the sidelines for now.
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| Figure 2. June T-bond futures (USM9), 15-minute bar. Source: Quote.com.
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Currency futures
The June Swiss franc [SFM9>SFM9] and Euro [ECM9>ECM9] both fell today as more bad news from Kosovo pressured the market. Talks were delayed after diplomats couldn’t agree on the basic terms for a peace plan. This turmoil is seen as a negative for the European economy and thus for the currencies. We managed to exit our longs on Tuesday at the 6575 area. For now, we’re flat. Stay tuned.
Next scheduled update: Friday, June 4, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)
