IIFT Daily Note with Peter Brown

Improving indicators lower stocks.

Posted by:  |  Time: 7:39 am  |  Topic:
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Better GDP and jobs date in the US have raised fears that interest rates will rise sooner than the market expected. Unlikely in my view but speculation on  interest rates drives markets crazy. We have not had to experience that for many years as rates have been close to Zero. We are a long way off a rat rise in the US (2015) and further in Europe. But you can see how stock, bond and Fx markets hype themselves when the prospect of a change is on the horizon.

That coupled with the fact that the stock markets look tired and are unable to reach new highs has caused the down moves of late. We are still getting 150+ moves which makes tech. trading tricky. I still maintain going with these moves is best this is not a market to try and fade the moves. Support points are being broken daily and a normal strategy of buying at support is not working.

Today will be Choppy and the levels are S&P (JUN) 1850  1835  Wall St (DFB) 16300  16200  DAX (DFB) 9540  9300 Euro 1.3780  1.3700

Gold 1280  support

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