IIFT Daily Note with Peter Brown

Amazing result from the FOMC.

Posted by:  |  Time: 7:36 am  |  Topic:  |  Comments: 3
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Well that was a surprise, no tapering. I don’t think many expected that outcome. It certainly shows the integrity of the news and the fact it never gets leaked. So MR Bernanke thinks the US economy is so weak he has to keep pouring in 85 bln dollars every month! That’s the reality. The market was in a feeding frenzy last night S&P up 28 handles, stunning. Dollar also got hit especially against the Euro.

The question now is, will the market correct today, after all what Bernanke is saying is that the economy is very weak. Will the market come to that conclusion an see the market is too high. On the other hand the Stock market will be well supported. Interest rates are zero, the stock market is the only chance of return. Can you afford not to be in.

These are the dilemmas facing traders today. Fact is we have to wait and see which way the US market goes. Either side could be a big move.

I am going to be patient today and hope for a pull back. Might not happen until the US market starts. I am not a fan of the dollar I will be looking for levels to buy the Euro on dips.

Level are S&P (DEC) 1723 1711   Euro 1.3580  1.3460

3 Comments

Gordon Anderson

September 19, 2013

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Hi

With IG setting the price at 24 euro per point they pushed me away from trading. I am going to go Shelbourne for trading and IG for charts.

Why do they do that ?

Gordon

    Peter Brown

    September 19, 2013

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    Hi Gordon,

    It seems to be a UK policy. Can’t understand it as the DOW is 1.23 a point

    Peter

Ciaran Scolard

September 20, 2013

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Hi Gordon,

To clarify the IG postion. They have a minimum stake on the S&P per HANDLE not per point – so divide by 10 to do a comparison.

Ciaran