IIFT Daily Note with Peter Brown & David McWilliams

Euro Zone is not fixed!

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Despite Draghi’s grand plan to buy bonds at the short end, he has not fixed the Euro zone crisis. Only debt forgiveness will do that.

We are however in what we call a severe bear squeeze. Draghi, plus the non farm payrolls have given the bulls the ball for the time being.

In terms of levels on the S&P 1410 and 1420 ( the year high ) have to be on, provided no surprises. On the down side the mood will have to change if we are to get below 1380/85 level.

Euro is sticky between 1.2400 1.2450 a break above here will target 1.2600. Again the mood will have to change for any downside action.

Last week was certainly a surprise, especially the Non Farm payrolls. This week will be tough to trade. At the moment it is a buy on dips.

(Sry for not getting back to people who tweeted me on Friday, I was at a very rainy football match. Lucky me!)

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