IIFT Daily Note with Peter Brown

Poor Durable Goods figures

Posted by:  |  Time: 7:31 am  |  Topic:  |  Comments: 2
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The figures were very bad and set the market a challenge. Rally on the back of no tapering, sell on the bad news. Initially the market put in a good rally reaching 1666. Later on however the market sold off back to 1650.  So the market is directionless for the moment. It is unlikely we will have a macro direction for some time. Certainly the economics do not show a strong recovering economy, which would justify the stock market rally this year. This is a house of cards propped up by QE. We now look forward to employment figures on Thursday and Non Farm payrolls next week. In the meantime we range.

The poor figures failed to weaken the dollar which I find surprising. Euro initially touched 1.3390 but has made no move since. Looks range bound also unless we make a concerted effort above 1.3400

Tech Levels are 1666 16658  1650  1645 1640      Euro  1.3400 1.3355  1.3335

2 Comments

David

August 27, 2013

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Hi Peter
How will the Syrian situation come into play at the moment?
Thanks

    Peter Brown

    August 27, 2013

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    Hi,

    The initial reaction can be seen from this mornings moves.
    From now it will depend on the action they take.
    If you think they will go in on the ground it will be serious.
    A shot across the bows minimal.
    So it is a live situation. For today it may be overdone.

    Peter