IIFT Daily Note with Peter Brown

NFP not that good and Ukraine back in the headlines.

Posted by:  |  Time: 8:03 am  |  Topic:  |  Comments: 2
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Well Friday worked well. The S&P cash 1900 level was a great sell point and I squared that trade this morning. Have we hit a medium term high. I think so. We start this morning negative but I want a bounce to re-enter shorts. Gold got a great bounce of the 1280 level and as usual FX is stable. Some calling for a deep correction in stocks from here. That will depend whether the Ukraine situation gets worse. At the moment I do not see a reason for a 5% + correction, there needs to be a big story for that to happen.

Today should be fairly quiet and than a little more active when Wall St opens.

Conditions Calm/choppy Levels are S&P (JUN) 1860  1848 Wall St (DFB) 16450  16350 DAX (DFB) 9650  9545 Euro 1.3740 1.3680 Gold 1325 1280

2 Comments

David

April 7, 2014

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Hi Peter
Dax levels working very well 9690 last Thursday and 9540 today. I think it might turn down for a bit on news and tech. Is Ukraine going to cause enough worry to send it back to 9000 especially as everyone assumed it was a stable situation? Any other news to drive this situation?

Regards
David

Peter Brown

April 7, 2014

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Hi David,
The Ukraine situation is worrying. If Russia try to take more territory that will be a very very serious development and will lead to major market jitters.
Other wise there is no big news. The market could get into correction mode. That would be a normal event. 5 to 7% down from the high.
So at the moment I am going to sell on rallies.

Peter