S&Ps Rally; Euro and S-franc Remain Weak
| PREVIOUS POSITIONS | ||||||
|---|---|---|---|---|---|---|
| Market | Long/Short | Entry | Exit | P/L (per contract) | ||
| June T-bonds | Short | 118 5/32 | 118 5/32 | – | ||
| June S&Ps | Long | 1330 | 1317 | -$3,250 | ||
| June Swiss franc | Long | .6600 | .6640 | $500 | ||
| CURRENT POSITIONS (as of 5/26/99) | ||||
|---|---|---|---|---|
| Market | Long/Short | Entry | Stop | Target |
| June T-bonds | Flat | – | – | – |
| June S&Ps | Long | 1312 | 1285 | 1305 |
| June Swiss franc | Flat | – | – | – |
Note: All price levels are approximate.
S&P 500 futures
The June contract [SPM9>SPM9] ended up rallying today and we remain long from yesterday. We got in early on this move and have managed to cover recent losses with today’s gain.
To us this move is all about bargain hunters and short covering, nothing more; we still think the market is stuck in a range. Tomorrow we will try to exit at the 1305 level with stops in at the 1285 level. Stay tuned.
 |
| Figure 1. June S&P futures (USM9), 15-minute bar. Source: Quote.com.
|
T-bond futures
The June futures [USM9>USM9] traded down today to our profit target. We broke even on the trade, but only after facing higher prices on our shorts.
Today’s sell-off was attributed to a halt of safe-haven buying because of devaluation fears in Argentina and the Durable Goods number, which, even though it was lower than expected (bullish), was actually interpreted as bearish after the market examined its components.
This development illustrates that what the market thinks is important constantly changes; you have to stay on top of what’s moving the market, and why, at any given time.
 |
| Figure 2. June T-bond futures (SFM9), 15-minute bar. Source: Quote.com.
|
Currency futures
The June Swiss franc [SFM9>SFM9] traded to our profit target yesterday and we exited with a profit. It then proceeded to make new lows as comments last night from European Central Bank members suggested they are not concerned with the Euro’s recent slide against the dollar. Their economies remain weak compared to the U.S., and thus their currencies will continue to be pressured.
Next scheduled update: Friday, May 28, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)