IIFT Daily Note with Peter Brown

High Volatilitiy continues

Posted by:  |  Time: 7:41 am  |  Topic:  |  Comments: 2
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Even though we are finding a level for the S&P around 1600. The high and lows are still extreme. 1615 on Friday to 1694. It seems a 100+ rally or sell off is common place in this market. However if we can find a medium term top we should be able to sell on any rally to there. At the moment 1615 looks a good level. Overall I thing the market is bearish. There are too many losses out there causing a lack of confidence for a sustained rally to re-emerge. At the same time QE in the US and Japan should keep the floor intact unless we get a severe shock. That would come from a hedge fund or bank in trouble.

For the start of the week. It is ranges on the S&P and dollar strength.

Levels are  S&P 1614  1594  Euro 1.3080  1.2980  Gold support at 1200  USD/JPY resistance at 100



July 1, 2013



A few weeks ago your opinion was that the Euro is going against the grain, because the value is not there and that the value of the Euro shouls be much lower, has anythin happened to change that opinion, or are we still waiting for a major correction?



    Peter Brown

    July 2, 2013


    Hi Herbie,

    I still have the same view long term. However the market does not look like it is going much below 1.3000 soon.
    I think later in the year we may get the sell off we expect but not now.