Daily Issue | jun 24, 2016
Stocks have sunk and volatility roared today in reaction to the U.K. vote to leave the European Union. It’s been quite a contrast to action in the past few weeks of boredom.
Volatility is one of those things that you miss when it’s not there, but seems to crowd the room when it arrives, like a fat house guest who is just taking up too much space.
Daily Issue | jun 23, 2016
Stocks ripped higher on Thursday in synch with expectations that UK referendum voters were likely to vote to remain in the European Union. Safe haven assets like Treasury bonds and gold tipped over, while crude oil rose 2%.
All sectors swept higher, led by financials and materials, concluding a multiday stretch of declines in which investors had been worried that a vote to exit the EU would dump the British economy into the English Channel. It was nice to see that consumer staples, which we have focused on for trading, fared well in the broad-based decision by investors to celebrate the maintenance of the status quo.
One really big winner was the UK currency, the pound sterling, as it rallied to the highest level vs. the U.S. dollar in six months after falling to a multi-month low only last week. How quickly sentiment can turn.
Daily Issue | jun 22, 2016
Stocks meandered above and below the flat line this afternoon, though well off their best levels, as investors prepare for the U.K. referendum on European Union membership tomorrow.
British media have been barred from doing exit polling due to alleged inaccuracies. But hedge funds are reported to have hired private survey firms to do exit polling, so you can expect markets to move well before results are finalized Friday.
Daily Issue | jun 21, 2016
Stocks traded sideways today with a modest upward bias. No major catalysts were in sight except for waves of positive and negative sentiment over the Brexit vote in the United Kingdom.
The energy sector took the lead, while health care lagged on pharma and biotech weakness. Treasuries were weaker across the curve. The U.S. dollar was stronger, gold settled down 1.8%, near a two-week low, and crude oil was down slightly. In today's Trader's Advantage, I'll review the latest action in our trades and my current instructions.