IIFT Daily Note with Peter Brown

Fears for the Fiscal Cliff recede.

Posted by:  |  Time: 7:47 am  |  Topic:
Trading Is At Your Own Risk - Read Our Terms & Conditions

A major move by President Obama last night brought a resolution to the Fiscal Cliff closer. S&P put in a solid rally to 1433. We may be about to start the Christmas rally and head a lot higher. We hoped the talks might stall to give the S&P a bit of a hit. It would have given a strategic buy level going into 2013. This now looks unlikely and we may have to buy now. Price action this morning and this afternoon will be key. A break of 1440 will confirm but any setback is also a buy opportunity.

On the Euro we are fighting this major resistance at 1.3175.  1.3145 is suport. Euro may find it difficult to make it higher with the good news from the States. A break of either is where the trade is.

Comments are closed.