IIFT Daily Note with Peter Brown

It is all about Ben

Posted by:  |  Time: 7:33 am  |  Topic:
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Market has put in a nice solid rally. This is the first time in quite a while that the rally did not reverse late in the day. The market seems certain that Bernanke will not spoil the party and announce a tapering to the QE programme. If this is the case we could soon be testing the year high at 1688. However I suspect it will not be that easy. The fact is we have to wait and see. The market looks a little to high and it not pricing in the possibility of disappointment.

This morning and this afternoon should be fairly quiet. Expect slow moves up or down. When Mr Bernanke starts to speak it will get very choppy. At these prices the risk is mainly to the down side  300/500 points. Upside potential is only about 150/200

Watch out for the trading bots. The candle while he speaks will be 100 plus points.

Levels in the meantime are   S&P 1558   1548   Euro  1.3410  1.3325

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