IIFT Daily Note with Peter Brown

All about Ben Bernanke.

Posted by:  |  Time: 7:53 am  |  Topic:
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We have our monthly puppet show today at 3pm when the Ben Bernank testifies to congress. The market will disect every word he says for clues to the economy and future QE. He may try to blame congress for lack of action in regards the economy and the debt ceiling. There are thoughts that he thinks the present unemployment figures due not reflect the true state of the economy and he might raise thsi as an issue. Obviously tapering will come up also.

All in all it should be some show. Nobody can predict the outcome of this. However when he has finished we may get some direction for a few weeks.

Today I think the risk is to the down side. The market was a little weak yesterday and I feel it is set for a sell off. So I will be a seller either way after he finishes.

The dollar is also showing signs of medium term weakness. Euro looks set for further gains and we may breach 1.3200 today. Eventually Euro worries will emerge but being ignored as yet.

Levels today are S&P 1680  1667  Euro 1.3200  1.3100

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