IIFT Daily Note with Peter Brown

US stocks close to year high.

Posted by:  |  Time: 7:49 am  |  Topic:  |  Comments: 2
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This year has been dominated by the ability of the US stock market to shrug off any bad news.The low interest rate environment supports flows into stocks from hedge funds and retail investors alike.This pattern is likely to continue all year. Despite problems in Italy and the fiscal cliff which cause sharp down moves, the bounce backs are impressive.

Can we reach new highs above 1530? I think that is likely but the mood will be set by Europe this morning and the services PMI. Watch for these for the mood. But shorting the S&P is proving a futile excercise. I still prefer a buy on dips strategy.

Euro is different and remains soggy. 1.3060 1.3100 1.3160 are resistance 1.2980 support.

IBEX is high so if the PMI’s dissapoint a sell there could be fruitful.

S&P 1530 major resistance 1521  1507 support.

 

2 Comments

Bryan

March 5, 2013

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Peter,

Any idea why the Ibex took a jump this morning ahead of the bad PMI figure?

    Elva Burns

    March 5, 2013

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    Hi Brian,
    No not really. The overall mood was good. But I don’t trust that market.
    You should only trade after the figures not anticipate them.
    Regards
    Peter