IIFT Daily Note with Peter Brown

Not for long

Posted by:  |  Time: 7:10 am  |  Topic:  |  Comments: 1
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Market did not stay calm for long. Yesterday saw a stock market rally and a weakening of the yen.

Late on we topped out at 1215 on the S&P. Soon the market will see through this Bank re capitalisation plan. There are no figures on how much and no consensus on how to do it.

We will turn bearish soon. If you look at the S&P daily chart this area has been a good sell. If we go risk off it could start another down trend. Wait for the move before jumping in.

Watch the yen today. yesterday we had a large seller of the yen. 77.50 on USD Jpy should be the key.

One Comment

Niall

October 14, 2011

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Couldn’t agree more, S&P at the top of a longer term range (8hr/Daily), Sellers could take over the market between here and 1230(Cash) or 1225(Future) and along with some Buyers taking profits the market has dipping potential. Breaking this level will scare me off.

For now the Buyers have control so unless you bought in a good area you can stay long or stay away.
Better not to try find the find the top wait for the sellers to take control. A strong piece of negative news would hopefully spark off a downtrend.