Wating for the Fed…
| PREVIOUS POSITIONS | ||||
|---|---|---|---|---|
| Market |
Long/Short |
Enter | size=2 color=000000>Exit | size=2 color=000000>P/L (per contract) |
| Sep. 99 T- bonds | Short | 114-05 | 113-09 | -$875 |
| Sep. 99 S&Ps | Long | 1330 | 1342 | $3000 |
| Sep. 99 Swiss franc | Long | .6530 | .6580 | $625 |
CURRENT POSITIONS (AS OF 6/28/99) |
|||||
|---|---|---|---|---|---|
| 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] gained moderately today after President Clinton made positive remarks about the budget surplus. Bonds rallied further ahead of position squaring before the FOMC meeting that starts tomorrow.
The release this morning of personal spending and income numbers for May was a non-event. We remain on the sidelines but will look to establish a position after the meeting, depending on how the market reacts. The consensus is a 25-basis point raise.
S&P 500 futures
With a little help from the bonds, today we exited our long position in the September contract [SPU9>SPU9] at our profit target. We are now flat and focusing our attention on the Fed–the same strategy as the other markets. Stay tuned.
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| Figure 2. September S&P futures (SPU9), 15-minute bar. Source: Quote.com.
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Currency futures
The September Swiss franc [SFU9>SFU9] and Euro [ECU9>ECU9] dropped today on a couple of factors: First, the FOMC meeting, which is expected to produce a rate hike, encouraged dollar bulls who think there could be a surprise 50-basis point hike. Second, the devaluation of Columbia’s peso also helped the dollar; anytime a devaluation takes place, there is dollar buying as a safe-haven mentality kicks in.
Bonds also helped a little, as capital flows were going into dollars, enabling the market to buy bonds. Altogether, there was no where to go but up. As with our other positions, we are flat as we await the outcome of the FOMC meeting.
Next scheduled update: Wednesday, June 30, 1999
(Check “Today’s Schedule” every day on our home page to find out about additional updates.)