IIFT Daily Note with Peter Brown

Market directionless and ranging.

Posted by:  |  Time: 7:42 am  |  Topic:  |  Comments: 3
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Up day , down day. yesterday was an up day. When the market behaves this way it get’s difficult to trade. The possible ending of QE in the US and the worries of excessive QE in Japan has the market in a confused state. Hedge funds are up substantial profits year to date and there is the temptation to take profit and go to cash. Then their is the bond market. Economic stats are positive from the US (especially on housing ) and bond yoields are starting to rise. Holders of US bonds with a yield lower than 2% are in a difficult position. Do they cut and run fearing inflation or hold on. If a rush to exit starts on the bond markets it will be akin to trying to empty the Aviva Stadium through one toilet door.

So the market is at a crossroads, we have very volatile markets but little direction. Everyday you face the possibility of a serious rally or selloff.

This is basically a jobbers market until the macro view becomes clear.

Levels to day are:  S&P 1660  1647   Euro 1.3200 1.3060  1.3000 1.2940

Go with the mood.

3 Comments

Conor Power

May 31, 2013

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Hi Peter

Now that we are about 90-100 points off the close last night, have we have a gap play for the S&P?

Conor

Peter Brown

May 31, 2013

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Hi Conor,

Yes we have . But be a bit careful, it is month end and Friday,any thing can happen in this market.

Regards

Peter

Conor Power

May 31, 2013

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Cheers Peter