IIFT Daily Note with Peter Brown

A day of Rest for markets?

Posted by:  |  Time: 7:52 am  |  Topic:
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It is Ascension Thursday so there are a lot of closed markets in Europe today. A chance for the markets to take stock of the crazy goings on of the last week.

Greece elections to be held on 17th June. In the meantime will anyone leave their money on deposit with a Greek bank? Unlikely.

Greece is leaving the Euro, it is only a matter of time. The market is unlikely to rally when it happens  as previously thought, the event is not priced in.

What can the ECB do in the interim? More LTRO money? maybe. A rate cut? unlikely. Either way it is bearish for the Euro. We may get bounces like yesterday but the bear market will return. This is too serious. I stick by my 1.2600 target but today with half the market closed we may go sideways.

The S&P has a good floor at 1320, worth a buy if we get there again. 1342 should hold the topside.

We are still waiting for Gold to get into our buy area 1500/1525

Should be a quiet day (famous last words )

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