Friday, June 24, 2016

BREXITS HISTORIC VOTE > WHAT'S BRENEXT


Good morning folks, 
What a night! 
We saw history in the making and it caught a lot of people by surprise. I don't think anyone really has a clue as to what the long term ramifications of this vote will mean for or how it will impact the rest of the world. What we do know is that there is a definitive change taking place around the globe and I sincerely hope that change is for the better eventually but only time will tell. 

I have had the caution flag up for the last several weeks as we got closer to this vote suggesting that cash was a viable position. When we have binary events like this it’s prudent to protect yourself and reduce your exposure. You can also be more aggressive and buy protection with put options or take positions in volatility and short biased ETF's. 

The global markets are selling off hard, while gold is gapping up. We can expect there to be a considerable amount of volatility. 

If you still have significant exposure to the markets the worst thing you can do right now is panic. Remember that this is just one moment in time and you never want to overreact on emotion. Take a long look at your portfolio and ask yourself why you took the investments you have and what your time frame is to hold those investments. 

Reevaluate your positions and consider reducing your exposure especially if you are still able to lock in some profits. This doesn’t mean run out and hit the sell button as soon as the market opens and dump your entire portfolio. It means that you should be strategic and look for areas where you may be over exposed. Identify areas of support and resistance and determine if it makes sense to scale out and harvest some profits. It also means recognizing your dogs. If you have some stocks that have broken your identified threshold of support you need to consider taking the loss. If you are on margin consider reducing your exposure there as well. 

Raise a some cash and identify areas of potential support on the stocks you own where you may look to start adding back to your positions if prices become too attractive to pass up. I am not suggesting this is a one day event; remember that just because you are not panicking doesn’t mean there won’t be millions of others that are.

We are going to do some technical damage to the markets today and we haven’t had a significant correction in over 8 years. Markets can become irrational in both directions and they can reach levels far beyond the maximum pain threshold for most. For investors and swing traders this is where patience is your friend waiting for maximum pain to reveal itsealf can take awhile but it often creates tremendous opportunity. 

Start building your wish list of stocks you want to own if you don't have one already. Build that list and as you go through it identify areas of support where you say to yourself  

"If I could get this stock @ or below this price it would be a steal. " 

It may seem like a rediculous price right now but when there is paralyzing fear in the markets tremendous deals can develop. Set your alerts and let it play out if your alert goes off look at the price action of that stock and the market action. 

You may decide you will be able to get it at a lower and even more rediculous price and set another alert or you could start dipping your toe to scale in. There is no rush, take your time and be strategic.  

There could be tremendous range in the markets today. Gold, miners, oil, the dollar and volatility are all on my radar for some short term trading opportunites if we get some sweet intraday setups.   




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I will be doing this weeks market wrap after the close and the Ticker TV stocks to watch on Sunday 8 AM Vegas time. I have a feeling that we are going to have an awful lot to talk about.


ETF's on my Radar 
Volatility                                                               OIL                                      Biotech
UVXY XIV VXX TVIX                      UWTI DWTI GUSH DRIP USO       
LABD IBB LABU  
VMIX VMAX      
 Gold                                SILVER         Dollar                                Financials
GLD NUGT JNUG           USLV             UUP                                 FAS XLF FAZ HYG JNK

Minerals and Miners                   Utilities           RETAIL                    Transportation              
XME GDX GDXJ                      XLU             XRT                         IYT  XTN
DUST JDST  
Agriculture                                  SPY     
DBA, DAG                           SPXS SPXL
STOCKS ON MY RADAR PREMARKET
EMES selling off a division gapper premarket 


*PR = Press Release* 

This weeks Ticker Tv Stocks to watch and their performance below