IIFT Daily Note with Peter Brown

Euro Zone, a ‘train wreck in slow motion’

Posted by:  |  Time: 7:54 am  |  Topic:
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No agreement on Greece, meeting again next Monday. French growth expected at zero next year. Spanish elections and possible split of the country. How bad can it get. Extend and pretend is going to come to a shuddering halt at some stage. Euro countries cannot pay back all this debt and austerity is leading to lower growth which is exacerbating the problem. We are in for a hell of a 2013.

As I have said before I am 50/50 on this Euro surviving at all.

In the meantime for trading, the Euro looks overvalued at 1.2800. We have good resistance at 1.2820 and the market is a sell here. Basically sell Euro on any rally.

S&P got as high as 1389 last night, this is good resistance also support come in at 1375  and 1365

Market is a sell on rallies as Greece will dominate Europe and the Fiscal Cliff will come back to haunt the US.

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