S&Ps Rally As Expected
| CURRENT POSITIONS (as of 5/3/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| June T-bonds | Flat | – | – | – |
| June S&Ps | Long | 1337 | 1330 | 1363 |
| June Swiss franc | Long | .6600 | .6550 | .6609 |
Note: All price levels are approximate.
S&P 500 futures
The June contract [SPM9>SPM9] rallied back as expected today. We stayed with our half position; we weren’t able to buy more because the market didn’t sell off in the morning as we had hoped.
However, we will be looking to unload our longs at the 1363 level tomorrow with stops in around 1330. Our research indicates we will see very choppy, range-bound trading in the near future as volatility levels and bond yields start to increase.
Figure 1. June S&P futures (USM9), 15-minute bar. Source: Quote.com.
Currency futures
The June Swiss franc [SFM9>SFM9] and Euro [ECM9>ECM9] once again declined slightly today. Even though the Serbs released the captive U.S. soldiers this weekend in a peace overture, the market is still very bearish on the European currencies, and as a result, no rally materialized. However, I still think we can get a small rally today on a little short-covering and will try to exit in the .6609 area with stops in at the .6550 level.
Figure 2. June Swiss franc futures (SFM9), 15-minute bar. Source: Quote.com.
T-bond futures
The June futures [USM9>USM9] rallied slightly today after the National Association of Purchasing Managers (NAPM) report showed less buying activity than expected. The relief caused a small rally in the bond market (following Friday’s sell-off inducing GDP number). We’re still flat, and will wait for a low-risk entry point.
Next scheduled update: Wednesday, May 5, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)