IIFT Daily Note with Peter Brown

Deadlock-no end in sight

Posted by:  |  Time: 7:38 am  |  Topic:
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The market is calm, hoping that the shut down will end quickly. There is no sign of that however. We know the US stock market is well supported on the back of zero interest rates. No where else to put your money.  It is surprising how calmly the market took the news. That will not last if we stay closed for much longer.

However any sell off is really a buying opportunity as it is likely on an agreement we will spik back to 1700+ on the S&P. Elsewhere gold got a downgrade and that knocked it back below 1300. Gold is now a sell on rallies at about 1325 level.

Euro is side lined no clear direction here. We may get a move upward on a weak dollar. I would like to see 1.3700 area as a strategic short.

 

Levels today are :- S&P 1692   1682  1675  1672   Euro  1.3580  1.3500

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