Volatility and Political Factors Contribute to the Waiting Game
SPECIAL NOTICE: The next “Financial Futures Insight” (Wednesday, August, 25) will be delayed until 6:30 PM ET.
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Long | 113-19 | 114-02 | $468.75 |
| Sep. 99 S&Ps | Short | 1331 | 1342 | -$2750 |
| Sep. 99 Swiss franc | Long | .6710 | .6705 | -$62.50 |
CURRENT POSITIONS (AS OF 8/18/99) |
|||||
|---|---|---|---|---|---|
| Market | Date | Long/Short | Enter | Stop | size=2 color=000000>Target |
| Sep. 99 T-bonds | – | Flat | – | – | – |
| Sep. 99 S&Ps | – | Flat | – | – | – |
| Sep. 99 Swiss franc | – | Flat | – | ||
Note: All price levels are approximate.
T-bond futures
The September futures [USU9>USU9] were slightly weaker in the morning (around 11:00 AM ET) after yesterday’s CPI rally, but managed to close up a few ticks. With the CPI coming in as expected (.3%), bond bulls came out. However, a rate hike next Tuesday is all but guaranteed. We remain on the sidelines.
S&P 500 futures
The September contract [SPU9>SPU9] rallied and stopped us out of our long position after yesterday’s CPI release. Volatility levels are still quite lower than last week and the market should continue to hold firm after last week’s washout.
 |
| Figure 1. September S&P futures (SPU9), 15-minute bar. Source: Quote.com.
|
Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] were slightly firmer today. A few factors contributed: 1) the yen sharp rise today as the Japanese economy strengthens; 2) comments by European Central Bankers about their views on the Euro. 3) weakness in the U.S. stock market. All these elements pressured the dollar. The short-term outlook still remains unclear and we remain on the sidelines. Stay tuned.
Members please take note: The next scheduled “Financial Futures Insight” will be on Wednesday, August 25, 1999.
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)