IIFT Daily Note with Peter Brown

This is a train wreck in slow motion!

Posted by:  |  Time: 7:42 am  |  Topic:
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The market was unimpressed with the result from Greece. Merkel laid down the rules in no uncertain terms, no revisiting the bailout. Greece can only leave the Euro,  timing is the only question now.

Elsewhere Spain is collasping at a shocking rate. Bond yields now above 7%. A full bailout is on the cards. The question here is who is going to give them the money. ESM or ESFS.

Make no mistake this is a bear market, despite the US attempt to rally thier market they will be dragged lower by Europe. Any rally is a sell.

So for levels:-  Euro is now 1.2625  to 1.2525 back to that old level, all the danger is on the downside.

S&P 1340 to 1348 is the sell zone for the moment.

Gold I like, but is very volatile. You need big stops. My target here is 1675 initially.

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