IIFT Daily Note with Peter Brown

Market settling down?

Posted by:  |  Time: 7:29 am  |  Topic:  |  Comments: 2
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First quiet day in some time yesterday. Market was range bound after the massive 5% rally in Japan. There is little in the way of economic releases until Thursday, so we may be in for a bit of range trading.

Overnight the Nikkei sold off a bit and this morning we should be sideways to slightly lower.

Dollar was sold again and the Euro is testing 1.3300 . USD/JPY topped out at 99.25 and is lower at 98.25

We have no macro direction to the market. High volatility but no clear outlook. It will be a jobbing day to day.

Levels are S&P 1648  1634   Euro 1.3300  1.3185  USD/JPY 99.25  downside could be anywhere.

2 Comments

Ross

June 11, 2013

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In other words, so long as there isn’t even a hint, an inkling, a tiny sliver of good news. This market isn’t making any huge surges up! It’s going sideways yes, as it would even if there were some bad news. Truth be known the market will just continue to go north. Regardless of any underlying fundamentals.

Peter Brown

June 11, 2013

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Hi Ross,

Since writing this morning tha market has decided to get very active. The main story dominating is the rise in bond yields.
If traders perceive the bond rally is over it will be carnage. This is the ultimate crowed trade of recent times. Bond losses are something banks have little capital to absorb.
Watch this closely this could stop any equity rally and even cause dramatic falls.

Regards

Peter