IIFT Daily Note with Peter Brown

Bear market returns. Is it here to stay?

Posted by:  |  Time: 7:26 am  |  Topic:
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After a rally on Wall St, which came from nowhere really, the market crashed late on. FOMC minutes hinted at higher interest rates and China PMI disappointed. We are now 200+ points lower than yesterdays high. This is market sentiment driving rather than hard news. The tone is becoming more bearish and I feel this sell off has the potential to continue. Ukraine, China slow down, Italy, poor figures from the US all these stories , while by themselves are not going to drop the market, collectively make me bearish. Sell the rallies.

AUD/USD  got a hit from the China figures and are target here is .8625 Euro still strong, looking for 1.3815 sell trigger. Stocks are just a sell and any of these bull rallies are an opportunity.

Big day today, expect Europe to be negative even if they bounce it a bit first. Plenty of economic stats today. PMI’s in Europe jobs in the US.

Expect a choppy/hurricane  day. Levels are Euro 1.3815  1.3730  S&P (MAR) 1827  1817 Wall St (DFB) 16030 15960 Not confident of supports.

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