IIFT Daily Note with Peter Brown

Very tricky market.

Posted by:  |  Time: 7:34 am  |  Topic:
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The ‘will they won’t they’ start to end QE in the US is causing confusion in the markets. Both the equity market and the dollar are up and down day after day. Since we started to correct from 1688 on the S&P and the Japanese market we have been left directionless. The volatility has been high but the  macro view is unclear to say the least. This is a difficult market to trade. Not unusual for May/June.

All we can say is the market is likely to stay this way for some time. It does not look like a total collapse as some commentators are suggesting. But it does not look like we will continue the buying spree we saw for the first five months either.

So we are in no man’s land in terms of direction. All we can do is job the market from day to day depending on the mood. Today looks like an up day initially at least.

 

Levels are Euro  1.3100  1.3040  1.2960    S&P  1654  1640  1620 not great and very wide.

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