IIFT Daily Note with Peter Brown

Going to be a tricky Friday

Posted by:  |  Time: 7:28 am  |  Topic:
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The market has corrected, ok. Now the game is how much correction are we going to get. This is a lot more tricky than the easy rally market we have enjoyed so far this year. The easy money is over for the time being. I have no idea as to the macro trend on the S&P and the Euro for the next while. The fundamentals support the S&P but the Italian election is up this weekend and then the fiscal cliff kicks in, at the start of March.

Traders with decent money in the bag so far this year need to be careful here. This is a 50/50 bet at best. I am reducing stake size and trading technicals for small points until I get a clear direction.

Levels are Euro 1.3160   1.3280  S&P 1496  1510 Nothing on the IBEX (too low)

I do like USD/JPY as a strategic trade. Calmer product in this volatile market. IFO from Germany at 9am is important.

Still think the S&P is a buy on dips but I would need 1496 or Brian’s level to enter.

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