IIFT Daily Note with Peter Brown

Running out of steam?

Posted by:  |  Time: 8:27 am  |  Topic:  |  Comments: 2
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The rally on the S&P reached 1230 yesterday. Got a different look to it this morning along with the Euro which is being sold as we speak.

Maybe we are comming to the end of this rally. Non Farm tomorrow is critical. Trying to stay out of the market till then. If we get a good figure I think we will reach our 1250 sell target. God knows how we will react to a bad one. Expectation of QE3 might give it a run up but this is going down eventually. Gold sidelined at moment. Watch those bank shares for clues to renewed selling.

2 Comments

darragh

September 1, 2011

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Hi Peter,

Darragh here one of your former students, what’s the story with the CHF at the minute, I thought the SNB & the Swiss Government want to devalue the franc stating that they would be happy for it trade at 1.20 level, as we speak its around 1.1433 and still falling, what is your thoughts.

Cheers Darragh.

Peter

September 1, 2011

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Hi Darragh,
What you have to remember is that the market is far bigger than the SNB. When things are calm they can have an effect, however when worries on Europe resurface like today they are pretty much at the mercy of the markets. So despite their wishes they have to have concrete resolutions to the debt crises before people stop buying CHF. This makes it difficult to trade because the moves will be erratic and it’s why we recommend you leave it alone.

Peter