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.
Daily Issue | jun 20, 2016
Stocks opened higher with a bang today, gapping up to a two-week high in sync with the easing of Brexit fears. New polls suggest the British people are on track to vote on Thursday to continue to live under the thumb of their European Union overlords in Brussels.
The pound sterling reversed its slide of the past few weeks by soaring on the news, and so did crude oil. Don’t forget, the UK is a major oil-and-gas producer out of its vast operations in the North Sea, so it’s no wonder that energy prices should get a lift from the potential for stability.
Looking further afield, there are several clues as to the long-term outlook for fossil fuels...none of them having to do with British self-government. In today's Trader's Advantage, we'll take a look at those, then I'll provide my latest trade recommendations.