Stock Futures are flat to start today's trading session, which is in contrast to Monday's sharp gap higher, and yesterdays strong open.
We've seen prices stay in a fairly narrow range since Mondays action.
Don't be surprised to see more of the same action that we encountered yesterday during todays session. Which means prices may see sharp moves in either direction during the trading day, but when the bell rings prices will be back at the middle of the week's trading range.
Final results for the Brexit aren't expected until Friday before the market opens. Until that time it is anyone's guess exactly what the outcome will be. I think the market is taking the approach that whatever the vote, prices aren't going to get much lower than they were last week.
If you can recall back to last year and the 'Grexit', the market rallied in the face of some nasty Greek news. But is was more of a sigh of relief that the worst of the Greek Drama was over.... at least for another year or two. With Brexit, the market just may rally no matter the outcome on Friday. Headwinds for this market since the March 2009 lows have been great buying opportunity's. Based upon the current market action and historically what it has done when the media claims imminent disaster is coming if Brexit comes to fruition - this is what I think will happen on Friday:
Markets rally as vote succeeds to leave European Union
Markets rally as voters pick to stay in the European Union
Either reaction could prove to be short lived. But this vote is long awaited and much of it has likely already been priced into the market.
I can already see the astonishment on Friday as futures are soaring higher regardless of the outcome from Brexit.
However there is no telling with any certainty where the market will head into weeks end. But there are many stocks making some great multi-day moves this week. Look no further than Netflix which continues to break down. Put options worked out wonderfully thus far this week.
and Solarcity which Tesla is looking to buy for a nice 25% premium.
$WYNN remains a stock to watch into the summer. It continues to trade with strong support over that $100 level. Even yesterdays early weakness was swift and indicative of a stock that looks poised to head higher.
Expect the overall market to chop around into the Friday Brexit explosion.
The open is minutes away. See you in the chat room.