IIFT Daily Note with Peter Brown

Tricky market.

Posted by:  |  Time: 7:56 am  |  Topic:  |  Comments: 2
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We know what is driving stocks lower. Tapering. But when you get a day when the market sells and there is no bounce it can be tricky. Add to that the dollar sell off at 6pm and we have difficult trading conditions. Most analists expect tapering to begin soon and an announcement on that in September. But is the economy strong enough? Will we be surprised and no tapering emerges?

We have to be a seller on any rallies because ahead of any news the mood will be bearish. These moves are big so be careful. S&P is not a buy unless we head towards 1650  in the meantime I would like to see a bounce towards 1672 to sell. Yesterday we did not get a bounce at all, very unusual.

On the dollar front, where did that selling come from? Probably the end of summer markets. Certainly no explanation.

Important today to give the market some time to find the mood. Would like to see a bounce obviously, going to be hard to sell at these levels.

Techs.  S&P  1672  1650  Euro 1.3400  1.3300  Be wary of sharp moves. not much on the calender.

2 Comments

terry

August 16, 2013

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Those ‘analists’ sure are talking out of their arse Peter.

Peter Brown

August 16, 2013

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Hi Terry,

It is just august. We will get back to reality in September.
Sometimes August needs to be ignored..

Peter