IIFT Daily Note with Peter Brown

Markets bounce, now to Yellen

Posted by:  |  Time: 8:13 am  |  Topic:  |  Comments: 1
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Good support found yesterday as markets bounced. Feeling is that Emerging market turmoil can be contained and as yet no further news from China. However the main event today and in fact year to date is this evening and Janet Yellen and the FOMC. Tricky call for her, taper and look strong but risk a further sell off or chicken out and look weak. I bet Ben Bernanke is delighted he has moved on for this one. Fact is we cannot tell what she will do and the market reaction. But it will be good to get this out of the way. The market reaction should be very volatile either way.

Best way to trade this market as we have said before is set yourself a small budget 75/100 points max loss. If you get it right the potential is much greater. Tomorrow we will be better placed to give a medium term call. The levels today will be the outside range where the market may hit today, so it will be wide. Expect a calm trading day and maybe a hurricane later.

Levels are Euro 1.3710  1.3600  S&P (MAR) Resistance 1817 1802  Support 1790 1780 1770 Wall St (DFB) Resistance 16245 16135 16050 Support 15900 15800

One Comment

Ian

January 29, 2014

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roll on 19:00 :)