IIFT Daily Note with Peter Brown

Market rallies, again!

Posted by:  |  Time: 7:29 am  |  Topic:  |  Comments: 2
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Despite more poor data the market rallied hard again yesterday. Getting very difficult to gauge this market. We are selling hard one day only to reverse that the next. Seems we are going nowhere fast despite price action making the market look like it has a direction. This market is now a 50/50 call, up or down. It certainly seems the data has little effect. I am putting a foot on the ball here and admitting I have no idea of the next move. It seems sideways is the answer but the volatility of the sell offs and buy backs are extreme.

Today we can only trade mood and watch the levels.

Conditions will be choppy Levels are Euro 1.3770  1.3700 Wall St (DFB) 16220  16120 S&P (MAR) 1846.5  1831.5  DAX (DFB) 9700  9600

2 Comments

Gary

February 21, 2014

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Hi Peter,

Is the recent volatility dur to it being option expiration week? And the fact that bad news is being taken as good news by the market would that not suggest we are in a short term bull market where we should buy any dips?

Hard one to call at the moment….

Thanks,

Gary

    Peter Brown

    February 24, 2014

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    Hi Gary.

    I think the volatility is due to the fact that nobody knows where this market is heading.
    Nowhere is probably the answer but the market has not realised that yet.

    It is trick for all of us
    Peter