IIFT Daily Note with Peter Brown

Shut down set to continue

Posted by:  |  Time: 7:44 am  |  Topic:  |  Comments: 2
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Despite a rally Friday the market has sold off again to the lows. Everybody is expecting the shut down to provide a buying opportunity, so investors are trying to buy the bottom of this market. The difficulty is how long will it last and if they fail to agree soon we could see a very nervous and serious down day. As yet there is no agreement in sight so I do not think we have seen the floor in the S&P or the top in Euro USD. Difficult game and then we are heading into earnings season on Friday. Just something extra to add to the mix.

So this week will be choppy. I expect a drift lower and some buying chances late in the day. I still think it is a buy on dips as being short when an announcement comes will be dangerous.

Levels today are  1686  1670  1668 (Dec Fut) 15075  14945 Wall st (DFB)  Euro  1.3640  1.3540

2 Comments

David

October 7, 2013

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Hi Peter

I agree with you, I think the S&P will fall to 1630 this week, not sure about a level for the Euro/USD, do you have a target in mind for it both this week and longer term?

Regards
David

Peter Brown

October 7, 2013

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Hi David,
1.3700 is my target for the Euro.If we get really close to a default then 1.3850 area.
Longer term I see it lower. back to 1.3200
Agree more downside on stocks before we get the rebound.
No end in sight as yet.

Peter