IIFT Daily Note with Peter Brown

Deadlock continues. It’s getting serious

Posted by:  |  Time: 7:46 am  |  Topic:  |  Comments: 1
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Stunning how politicians can affect markets, negatively! We had a serious sell off late yesterday. This is going to get volatile if we do not get a resolution soon. No sign of it yet as the standoff continues. One thing got resolved last night, Janet Yellen will be the new FED Chairwoman. A Ben Bernanke clone, so no change there.

As we get closer to the deadline the market is going to get more nervous. Difficult to trade as the solution will lead to a massive rally. The DOW was down 1,000 points from the high yesterday. Hard to sell the market so a little jobbing is in order while we wait.

We need to be ready to jump on the rally, that is where the money is. Unfortunately it will probably come late at night so we may suffer some gapping. A buy order above the market may work, worth looking at.

In the mean time the levels for today are

Euro  1.3610  1.3525  S&P (DEC) 1662  1647  Wall St (DFB) 14890  14840 support at 14740

One Comment

lawrence

October 9, 2013

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Good call. I m glad I m not alone in trying to find a sweet spot.