IIFT Daily Note with Peter Brown

Market has stabilised but outlook is uncertain.

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Relatively calm day after the panic on Monday. Market found some support but is uncertain as to the future. The outcome of the Italian election will leave Italy and the Eurozone confused for some time. Who will lend Italy money? Will they be able to stick to the austerity adjustments?Do they go for another election? All this is going to lead to uncertainty over the future direction of Europe and the Euro.

Then we have the Fiscal Cliff talks comming in March in the US, more uncertainty. We are heading into a market unlike the first 7 weeks of the year which was easy and had a clear direction. Now we face markets that are likeky to whip-saw from one piece of news to the next. Technicals will play a big role in finding entry and exit points over the next month.Be prepared to be a buyer one day and a seller the next. A clear trend is unlikely to emerge.

Levels today are Euro 1.3020  1.3120   S&P 1484   1498/1500

Go with the flow.

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