IIFT Daily Note with Peter Brown

Deal done,six months of breathing time.

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At last this farce is over for at least six months. We will visit this issue again in the new year. For the rest of this year we can focus on basic economic performance. There was no great rally on the news and in fact markets are lower. How much damage has been done, financially and to the reputation of the US?

These are the questions that need analysis. There is no doubt tapering is no far away and that should support stock markets. Today is a pivotal session and the market can go either way. Buy stocks on the low interest rate, QE arguement? Sell stocks because the damage is done. I favour a short bear market but I will be a buyer on dips. All this year the stock market has bounced strongly from adversity and this I feel will be the same.

The dollar may be more confused, I feel there is more damage caused to the currency than the stocks.

Important day, especially the afternoon session.

Levels today are  S&P (DEC) 1717  1700  wide range but should settle in closer. DOW (DFB) 15375  15200  Euro  1.3480  Strong support  1.3570

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