IIFT Daily Note with Peter Brown

Expectations are lower

Posted by:  |  Time: 7:54 am  |  Topic:
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Normally we rally into Ben Bernanke speaking but the market has lowered it’s expectations this time around. The S&P is firmly capped around 1412 and indeed sold off yesterday afternoon. Gold also took a hit, normally the big gainer from QE. Euro is sidelined.

I think the downside for the S&P is limited to 1396/98 area. It is still worth watching as we could get a rebound today.

All in all this week is a classic example of a market where you have to be defensive. There is little in the way of profitable opportunities so the trick is not to trade too actively. Small positions low expectations.

The markets we can exploit are where we have a clear direction. That should be evident following Bernanke and especially Draghi.

Expect some bounce in the S&P over today and tommorrow but clearly next week is the key.

Levels are S&P  1412 1398  Euro 1.2600  1.2520   Gold  1675  1655

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