IIFT Daily Note with Peter Brown

Bounce in Asia

Posted by:  |  Time: 7:31 am  |  Topic:  |  Comments: 4
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A good bounce on the Nikkei overnight. Up 700. This should lead to a good solid up day across Europe and the US. Market was nervous but this recovery will give confidence to the markets and we may see a very substantial rally.

Dax, Ibex S&P should be the big winners.

Elsewhere we are seeing pressure for the ECB to adopt US, Japan stlye monetary stimulus. This is not good for the Euro long term. I am starting to look for levels to sell the Euro on a strategic basis. We may see it higher short term on an equity bounce, but I see no scenario where the Euro can appreciate long term.

Levels todays are:-  S&P 1661  1659  support at 1651   Euro 1.2950  1.2880

 

4 Comments

Conor Power

May 28, 2013

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Hi Peter

Just wondering again about the Gap play can it work the opposite way. Right now we are up around 1661, Fridays close in Wall St was around 1651. When they come in this morning in Wall St, will they look to sell back down to this level?

Conor

    Martin Delaney

    May 28, 2013

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    Hi conor. Gap play works much better on the down side when there is 80 points plus id buy it, but id never try closing the gap from the up side. Especially when the bulls are out. Hope this is some help.

    Elva Burns

    May 28, 2013

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    Hi Conor,

    I like the market today as you can read from my blog. There may be a gap play at 11.30.
    But it is a close to the downside (not great) and the market is in a bit of a feeding frenzy, with confidence restored.
    If you see it move there may be a few handles but I suspect that will be it.

    Regards

    Peter

Conor Power

May 28, 2013

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Thanks for that guys, it is very helpful