US Economy Continues to Outpace Europeans
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| size=3 helvetica>CURRENT POSITIONS (AS OF 12/13/99) | |||||
|---|---|---|---|---|---|
| size=2>Market | Helvetica>Date | size=2 Helvetica>Long/Short | size=2 Helvetica>Enter | size=2 Helvetica>Stop | Helvetica>Target |
Mar. 00 | Flat | ||||
Mar. 00 | 12/13/99 | helvetica>Short | 1440 | 1462 | 1420 |
Mar. 00 | 12/08/99 | helvetica>Short | 1.02 | 1.03 | size=2>1.005 |
face=Arial>Bonds
The March
bond contract [USH0>USH0]Â was moderately down Monday on profit-taking
ahead of Tuesday’s CPI report. Volume was light however, as many stayed out of
the market altogether. We were waiting for a rally to sell into but never got
the chance, and will thus wait it out on the sidelines. We suspect that
Tuesday’s report will show continued strength in the economy, which could put
some sellers into the market Tuesday. However, we wanted to lower our risk on
this trade, and sell into a rally Monday, as this would have raised our shorting
price.
| “We are establishing a short position now (in S&Ps) at the 1440 area.” |
color=#008000>Currencies
March euro futures [ECH0>ECH0]Â
was up a little Monday on bargain hunting and short- covering ahead of Tuesday’s
CPI report. We still view the downtrend as intact since the continuing strength
in the US economy continues to outpace the European economies. Overall, the
market is short again after last week’s rally and we expect a follow- through
back down to the recent lows.
color=#008000>Stocks
March S&Ps [SPH0>SPH0] rallied again
ahead of Tuesday’s CPI report amid continued strength in the Nasdaq. We are
establishing a short position now at the 1440 area, as we suspect Tuesday’s
report could very well be a catalyst for a short- term correction, if the report
shows any type of strength at all. Stops in at the 1462 area with a profit
target at the 1420 area. Stay tuned.
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Next update: Wednesday, December
15, 1999.