IIFT Daily Note with Peter Brown

Stocks and bonds better.

Posted by:  |  Time: 7:41 am  |  Topic:
Trading Is At Your Own Risk - Read Our Terms & Conditions

After a surprisingly quiet day yesterday, the market stabilised around the lower levels. This morning things look a little better with Spanish yields below 5.8%. Euro is at the top of it’s recent range at 1.3150 and the S&P is pushing on important resistance at 1371.5

Gold is sidelined.

Secret again today is the yield on Spanish bonds. There is no question the S&P wants to break higher and will do so if the bond markets stay calm. A break of 1372 should lead to 100 points higher. Likewise on the Euro a break of 1.3160 should be worth 50 points.

If nervousness returns these are great sell levels. I favour the upside myself.Eventually.

Comments are closed.