IIFT Daily Note with Peter Brown

It seems Ukraine does matter!

Posted by:  |  Time: 7:31 am  |  Topic:
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After days of ignoring the situation in Ukraine and concentrating on earnings, the market suddenly woke up to the risks associated with the situation there. We saw that starkly in the DAX and the vicious sell off in the afternoon. Market was trending higher up to that point and the underlying mood of the market was bullish. We now know Ukraine has the potential to have a major impact on pricing especially stocks and gold.

So trading today will be nervous and headline driven. The best strategy to trade this market condition is to scalp. Dive in on the news and grab some points. If the news is bad enough load in on the positions. Be fleet of foot as the market is likely to suffer wild swings. Remember underlying the market wants to go up, so it will not be all one way.

On the Euro Mario id his usual trick yesterday, ‘we are ready…………………. but no action. He will not manage to get this euro down with talk alone. I favour a move to 1.3900 and maybe above.


Conditions today Choppy/huricane

Levels ( will not work against headlines from Ukraine) Are S&P (JUN) 1878 1863 Wall St (DFB) 16520 16420 DAX (DFB) 9560 9400

Euro 1.3850  1.3790  Gold 1300  1286

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