Shorts Aplenty in S&Ps, T-bonds, and D-mark
T-bond futures
Short-term perspective: The June futures [USM9>USM9] dropped slightly today on
concerns of new corporate debt supply hitting the market, as well as general profit taking by
longs.
We established a short position on the close today at the 120 29/32 level with
stops in at the 121 25/32 area. The last two days have been very subdued; we will try to cover
at the 120 16/32 area tomorrow as we expect this quiet
trade environment to continue.
Long-term perspective: We are still short the June futures with stops in around 122 16/32.
Currency futures
Short-term perspective: We established a short position today in the June D-Mark [DMM9>DMM9]
at the 5620 level because
we think the market is temporarily overbought. The last couple of days of
upward price movement have been fueled in large part by shorts covering their
positions; we think the market will eventually continue its downward
trend as fundamentals reassert themselves. Our stops are in at the 5700 level
and we will look to cover shorts at the 5585 level.
Long-term perspective: We’re still short the D-Mark. Fundamentals remain the same, with fear
of higher rates in the U.S. putting pressure on this contract. Stay tuned.
S&P 500 futures
We were stopped out of our trade in the March futures [SPH9>SPH9] at the
1295 level and we are on the
sidelines now. The market continues to show strength with no pullbacks. We
will look for more shorting opportunities later in the week.
Next scheduled update: Friday, March 12, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)