Futures Sense Sep 16, 1995
Andre R. Latreille
key reversal last Friday, (Daily Chart), it could be an indication that we
may see a pause and some retracement in the coming days. Longer term,
however, there is no sign of this market slowing down, 595-600 would not
be a surprised. My daily trend maint. indicator (TMI) shows that the low
must maintain 560+ by next Friday. Recommendation: If long this market
maintain your position. Long term players should use put options in the
560-570 range for protection. Short term you may look at using a 1 week
lag stop.
U.S. Bonds: We are working our way towards the highs in the 116 area.
Short term support at 112, long term at 110. Daily trend maint. low at
111-24 and moving above 112 by Friday. Recommendation: (Long @114-19;Long
112 Nov Put). Sell stop at 111-20.
Euro $$: The yield curve continues to flatten, which leaves me to believe
that some easing may be forthcoming. Daily support @94.20, weekly @94.10
area. Recommendation: (EDZ 95) Long @94.28. Stop @94.16.
British Pound: Short term support and resistance levels have been
established at 153 and 156, respectively. Weekly levels are 153 and 160.
Trend maint. indicator (TMI) is at 157.38, (Highs must remain below that
price). Close must remain below 156.62. Recommendation: Short BPZ 95
@154.42, Long 157 Oct Put. This position was rolled from Sep long @159.60.
D-Mark: I am looking for this market to move down to the 63-64 level.
Short term resistance at 68.70, long term at the 72-73 area. Trend maint.
indicator (TMI) at 70.00 for the highs and 69.66 for a close.
Recommendation: Spread; Long DMZ/Short SFZ at 15.90, premium SF. The
target on this spread is 10-11.
S-Franc: Immediate support at 81.70, resistance at the 83.90-84.00.
Longer term we have 80 and 88. Trend maint. indicator (TMI) at 84.80 and
below 84.42 for closes. Recommendation: See DM.
J-Yen: Cheaper yen, cheaper products. We are in a free fall and its
anybody's guess where we stop. My vote is the 90-92 area. Recommendation:
If you are not in this market with a strong hand, stand aside and wait for
a better opportunity.
Have a good week.