IIFT Daily Note with Peter Brown

Thanksgiving, it should be quiet.

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We rallied yesterday despite no deal on Greece. Seems the market expects a deal on Monday and a ‘kick the can’ solution. This should take the Euro zone off the agenda until New Year. 2013 is going to be tough but that story will have to wait.

That brings us back to the fiscal cliff. Today is a holiday in the US so no action. Next week Congress returns and the serious job of agreeing deficit cuts begins. I expect a rollercoaster ride. Risk on , Risk off depending on the progress of talks. We should be in for a volatile ride toward year end.

I should mention USD/JPY. It is very overbought on the 4Hour chart and should correct. Long term we expect 87  90 and even higher. For those strategic traders wait for a pull back to enter. This moves slowly but has big upside potential.

On the S&P 1400 should be resistance now that we have broken 1388. But will be quiet.

Euro 1.2900  resistance  1.2800 support.

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