IIFT Daily Note with Peter Brown

Getting Excited?

Posted by:  |  Time: 7:02 am  |  Topic:  |  Comments: 3
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Market starting to believe there is a deal done for Friday. Think it’s a bit premature. Even when the deal is put on the table it is possible it will be rejected. First up is a possible rate cut tomorrow. Market is ecpecting a 1/4% . Anything different will cause some reaction.

Rumblings of a bigger EFSF and an increased role for the ECB are causing the surrent spikes in S&P and Euro. Can’t see huge upside ahead of Friday but beleive me anything is still possible here.

3 Comments

Paul

December 7, 2011

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If all that comes out of this summit is more treaty changes (completed by March). No eurobonds, no QE then would you advise having an order in to sell the S+P at some level?

Thanks
Paul

Peter Brown

December 7, 2011

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HI Paul,

If that happened thye move would be huge. Expect this meeting to go on well into the night, last one was 3am announcement I think. The outcome will set the tone for the rest of the year. Don’t underestimate their ability to come up with something that pleases the market short term. Putting an order into this market is dangerous as the potential up or down side
is hundreds of points.

Peter

Paul

December 7, 2011

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thanks Peter.I’ll watch for a short term bump