IIFT Daily Note with Peter Brown

Sell on rallies

Posted by:  |  Time: 7:55 am  |  Topic:
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Having spent a few days off at the end of last week, I see the levels facing me this morning are at the lower end of the range on the S&P and middle for the Euro. I left Thursday with the market selling and then it rallied hard Friday and now it’s back towards the bottom.

Basically the way I see this market is that the upside is limited and all the risks are on the downside.

Spain, Greece and the whole Eurozone project will dominate untill year end. With the IMF admitting that the austerity strategy is flawed we should remain unsettled for some time. Selling this market is only profitable when the market is rallying, difficult but because we have thin markets they are running up and down, one day to the next.

So the good entry levels are 1.3000 on the euro and 1437 on the S&P. Support is at 1.2825 and 1418

Any trading in the middle is a jobbing exercise, which will entertain but will not be especially profitable.

 

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