IIFT Daily Note with Peter Brown

Good earnings drive market higher.

Posted by:  |  Time: 7:44 am  |  Topic:  |  Comments: 2
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The possibility of a stimulus programme from the ECB set the DAX on a surge yesterday morning. That rally followed through into the US session when earnings were better than expected. All in all the market put in an impressive rally on both sides of the Atlantic. Ukraine and the worsening situation there, was totally ignored by the markets. So much for our correction, we are now looking within touching distance of new all time highs.

The overriding factor remains , that while interest rates stay at zero nobody wants to sell their holding of stocks.

Today we have a lot of economic releases, PMI’s especially. Market still looking to punch higher so a buy on any dip this morning.

Conditions Choppy

Levels are :-  S&P (JUN) 1877  1872  Wall St (DFB) 16570  16500 DAX (DFB) 9640  9560  Euro 1.3850 1.3780 Gold 1892  1877



April 23, 2014


Hi Peter

It looks like decision time for the markets. Im looking at the DAX and 9570 is the 76.4% retracement of the recent April pull back. I think the Ukraine situation is only going to get worse, there is too much at stake for all stakeholders. I think at best there will be an on-going civil war at worse a proxy war. The US is moving more military assets to eastern Europe. Heading into summer also is keeping me from going long and then there is china. Markets cant ignore all of this forever.


Peter Brown

April 23, 2014


Hi David,

Could not have put it better myself.
Market reacting to the Ukraine news for the first time in the last hour.
Your analysis is perfect. Now the timing!
Interesting the easiest play may be Gold.

But overall the market is underestimating China and the Ukraine