IIFT Daily Note with Peter Brown

Reaction to Yellen comments overdone.

Posted by:  |  Time: 7:38 am  |  Topic:
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Let’s face it all she said was interest rates may go up six months after tapering ends. That calculation makes it April/May 2015. The market was hoping the first rate rise would be in Autumn 2015. She also said the rate increases would be slow. So we may get a rate rise in Spring next year and it may be a 1/4% big deal. This reaction is a day trader move , there will be no fund managers cashing in their clients over this.

Volatility has dominated stock indices this year but in fact we are going nowhere fast. Unless we get big news a la Ukraine fighting the market will remain range bound, albeit a wide range. So my bet is we bounce right back.

Stocks are down and the dollar got a bounce. Plenty of news this afternoon to keep us busy but I still feel going with the candles rather than fading is the tactic.

Conditions today should be choppy

Levels are S&P (MAR) 1855  1840 Wall St (DFB) 16235  16130 Dax (DFB) 9250  9165 Euro 1.3900  1.3820 Gold 1350  1325

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