IIFT Daily Note with Peter Brown

Volatile is an understatement.

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Well it is one amazing day followed by another. Market was behaving normally and rallied following good results from Coca Cola and Johnson and Johnson. We then sold off heavily following news from Ukraine that shots had been fired (normal). What happened at 6.00pm I am at a loss to explain. A 300+ point rally on the S&P and Ukraine ignored.

This market is highly volatile and in Hurricane conditions. Hundreds of points and the moves are in both directions. Today anything is possible. This market is definitely a mood trader’s strategy. (Goes green buy it etc.)

Market open looks a bit high, so probably a bit lower in the European session. Watch out for CPI at 10am. Wall St can do anything and expect severe volatility this afternoon. There is no doubt the US are not taking this Ukraine situation seriously enough. OK their exposure is not as great as Europe but Ukraine will have a global impact, when will the market realise that, I do not know. Watch DAX for mood.

Conditions today Hurricane

Levels are :- S&P (JUN) 1852  1832  Wall St (DFB) 16450  16280 Dax (DFB) 9360  9200 Euro 1.3850  1.3800  Gold 1305  1290

One Comment

Mark

April 16, 2014

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Nikkei newswired sourced a statement around 6 last night saying that japan were going to down grade their economic assessment, i.e. more stimulus, weaker yen, more carry, stocks go up!