IIFT Daily Note with Peter Brown

Extreme volatility dominates the stock markets.

Posted by:  |  Time: 7:49 am  |  Topic:  |  Comments: 1
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Amazingly we had a 200 point rally yesterday, then a fall of about 200 points and then a rally at close of about 200 points. I have to rack my brain to think of a previous time I saw such volatility. Market is nervous and divided as to how deep this correction should go or are stocks a buy at this level. Yesterday the bulls won out but with Ukraine hovering in the background how stable can the markets be.

This is a tricky time for indices trading. The 15 minute candles can do 80 points. Very difficult to have stops that will not get hit and difficult to get the direction. Again today we will go with the flow, if the market is in buy mood we will buy it and vice versa. Let’s hope our stops can survive. I favour small stops in this market and I am prepared to use a few of them.

Elsewhere Draghi has had some success talking down the Euro. 1.3800 should be good support and don’t expect a sell off without some real ECB action rather than talk. Gold very volatile also, 1300 good support 1328 resistance.

Conditions Hurricane

Levels are S&P (JUN) 1832 resistance no support until 1804 Wall St (DFB) 16220  16050 DAX (DFB) 9400  9280

Wide levels but this market is not running on technicals but sentiment.

One Comment

Terry Pierce

April 15, 2014

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Have to agree with you Peter, volatility is crazy. Think we are seeing a slight pattern emerging of selling once the European bell closes, a couple of late sell off’s.