IIFT Daily Note with Peter Brown

Correction or something more serious?

Posted by:  |  Time: 8:47 am  |  Topic:  |  Comments: 2
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The market went from stable to meltdown last week. The sell off was greater than anyone anticipated. Reasons range from, just a profit take from last years 30% rise, to emerging markets to China. take your pick the reality is the market is nervous. This means the next few trading sessions are key. then we have the FOMC on Wednesday. Can we taper more in this market? All in all it is going to be a volatile week. Nobody can predict what will happen. The best way to trade is on mood with a reduced daily points budget. If you loose keep it controlled that opens the upside of a big day.

Market condition is hurricane, 150+ point moves.

Keep an eye on USD/JPY for direction. A bounce here will lead to a bounce in equities. Also Gold for how nervous the market is.

Levels are hard today but here goes.  Euro  1.3740  1.3660  S&P (MAR) 1800  1790  1776  Wall St (DFB) 16000 15800

Be careful use 100 points as a max loss.


Terry Pierce

January 27, 2014


If we lose the 102 level on the USDJPY expect to see a big sell off in the US equity markets. Unless we see a significant bounce today I favour a further move lower

Peter Brown

January 27, 2014


Hi Terry,
I agree fully. Pivotal day and USD/JPY the key sentiment indicator.
Think Europe will leave the big move to the US stock market.