IIFT Daily Note with Peter Brown

Bad Europe being ignored

Posted by:  |  Time: 7:33 am  |  Topic:
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There is a lot of bad news in Europe. French downgrade, Spanish PM calls to resign, Portugal, Italian downgrade. All of this is being totally ignored. Euro is looking strong above 1.3000 and stocks are at highs. Typical summer market. Question is will the market turn to face the Eurozone problems. A year ago we would be in a head on crisis with this news!

I know a lot of you are positioning for a correction in stocks, but be careful. ‘The market can stay irrational longer than you can stay solvent’. We need to trade what is in front of us and at the moment the market is calm and relaxed about these issues. So it is jobbing the market daily for the time being while keeping in mind the mood may change and get very bearish.

Today levels are S&P  1686 (year high) support at 1672  1666   Euro 1.3100  1.3000

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