We are now just one day away from the Brexit vote and we cannot be more ecstatic to see it finally arrive. There has been endless coverage and not just here in the states. The entire globe is watching what the Brits will do. Market participants are doing the same as the VIX continues to rise ahead of Thursday’s vote. For the most part the market has been quiet after Monday’s lackluster day. Odds makers are certainly counting on the Brits to vote “remain.” Stocks have been holding steady and it will be quite interesting to see how the market reacts after the last vote is tallied and we know the final result. Our market model remains in neutral ahead of tomorrow’s vote.
We have been able to hang onto Monday’s low, but still unable to push higher. The S&P 500 still hasn’t been able to recapture 2100 and a close above it would certainly be a positive thing. Volume accompanying the move would be even better. However, since volume really hasn’t played nicely since 2009 we are not going to expect too much. The bottom line here is we are still in position to push higher. The Dow Jones Industrial average and the S&P 500 are the two best looking indexes followed by the Russell 2000. The pour NASDAQ continues to lag the general market with the likes of AAPL, GOOGL, and MSFT struggling to push higher.
This evening we do have one hedge position to put on for tomorrow’s open. If we rip higher we’ll cut our losses and move on. No emotion, just action. As most await the Brexit vote we are going to go out and enjoy life. Enjoy the fireworks!
