IIFT Daily Note with Peter Brown

Strong rally despite fudge.

Posted by:  |  Time: 7:52 am  |  Topic:
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S&P did well yesterday, putting in a strong rally despite the fact that the Fiscal Cliff is still alive and needs to be resolved by end February. It will be back as an issue and more intense than we have seen so far. Europe also is set to come back into the fore. Greece is still a basket case, Portugal are fed up with austerity, Ireland need a debt deal, Spain have a massive funding requiement. All of this is to come but in the meantime I think we can attack the 1462 Sept high. Support is at 1440. Remember the low interest rate dynamic that will dominate the S&P this year, so we want to be buyers unless we have clear defined risk off news. So buy on dips.

On the Euro we have had profit taking from the Christmas rally. I do not see a clear trend for the Euro yet. 1.3120 is support today . Below here 1.3100  on the topside 1.3230  1.3300 Trade around the pivots so you can use small stops.


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