What happens when a government ignores 50% of the populace? UKEXIT!!!!

The markets are in free fall due to the UKexit vote this morning as the thing that would never happen happened! The UK has voted to leave the EU by a 52-48 % vote. This is historic as now many of the other EU members are reconsidering and calling for exit votes. It could result in a cascade of leaves with the EU weakening substantially.

What’s remarkable to me is that Politicians never get it. How many leaders have been left on the wayside ignoring the populace? I would say this is a wake-up call however for politicians, however, there never seems to be one. Centrist is a bad word for most as they all feel they have to ram whatever ideology they believe in at the time down the populace’s throat.

Enough policy and these comments are no way to be construed as any representation of any political affiliation I have. As I have NONE! I am a pure independent with no beliefs except where logic leads me.

I dodged a bullet as I was looking to play the long side into the vote but the market never gave me the opportunity. The gap up and strong close yesterday negated my strategy. Sometimes it’s better to be lucky than good:) But most times not!

So where to from here? As always the market is going to overreact to the downside. This vote far from means the UK is leaving the EU. You will get a call for a new vote(already in the works). You also will get a massive propaganda machine rolling downplaying the vote(already has started). My opinion for what it is worth is that the leave is never going to happen. There is too much money committed into globalization to even begin to respect what over 50% of the voters want. Not a chance!

So if your long whatever you do do not panic! Since I have no idea what you’re holding you’re on your own but panic should not be a motivating factor. If your short congrats!!!

Myself I am flat and will be looking to get long gradually into this. When panic sets in there is an opportunity for swing trades. But I am not going to do anything on the open. It’s going to be a crap shoot. And remember the margin calls and liquidation of traders accounts will be in full force on the open. Not only for individual traders but also hedge funds. There is going to be a lot of people going bust on this one.

I will post more then usual this morning if I see any glimpse of sunlight to trade. In addition, one bright thing about all of this is I really doubt we will have to listen to the Fed call for rate hikes anytime soon!

Good Luck Today

RickJ
RickJ’s Handicapping Picks

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