IIFT Daily Note with Peter Brown

Market still nervous.

Posted by:  |  Time: 7:22 am  |  Topic:  |  Comments: 2
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This market may be more than just a correction of the bull run seen in the first five months of the year. The truth is we just don’t know. Certainly confidence has been dented and the Asian market is selling into close again. Combined with a bad day on the S&P last night, the mood in Europe this morning should be poor. Whether we find a bottom soon I cannot tell. 1600 looks a target on the S&P.

The market is confused and in these conditions we have to be careful. Basically we can see a 200 point rally or fall anyday.

Until the market finds a floor or a macro view of where we are heading, these market conditions will continue. I would say commetators are split 50/50 as to where we go from here.

The way to trade this market is to give yourself a budget of points each day (say 75) as a max loss. On the days you get it right you should make more. As you head into each day expect anything to happen.

Levels today are: S&P 1622 1600  Euro  1.3200  1.3060

2 Comments

Herbie

June 6, 2013

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Someone on Bloomberrg said that they can see the USD appreciate 10% this year, forget now on the back of what…
What on earth is driving the euro so high if the value is not really there?

    Peter Brown

    June 7, 2013

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    Hi Herbie,

    Sorry for not getting back to you sooner, I was not at my desk yesterday.
    The recent fall in the dollar is based on a reassessment of the US economy and whether QE is working.
    Market is mad at the moment.
    See today’s blog for more info.

    Peter