Just your normal, everyday session before a major referendum on big government. Not the first of the year, but the biggest one thus far. The second is in November.
The US markets have rallied nicely, they sold off the entire move and more, and are now just below midrange for the session. Looks as if they are going to attempt a last hour bounce but that remains to be seen. Get it? Remains to be seen.
SP500 0.22, 0.01%
NASDAQ -3.07, -0.06%
DJ30 -25.06, -0.14%
SP400 -0.05%
RUTX -0.22%
SOX 0.09% upside.
People in the UK are lining up to cash in pounds ahead of the vote, apparently fearing a 'go/leave/exit' win will hurt the pound. Personally, I think a sharp drop would be a great buy point. Perhaps these people believe that as well and will buy back in after a drop. Right. Sure they will.
There is a forecast for heavy rains Thursday and the market drop from the midmorning highs occurred shortly after that release. Some are saying there is a connection. Could be. Could be utter crapola.
The point: it shows just how much straw grasping is taking place.
Oil inventories fell considerably. Oil blew a 1.3% gain and trades lower (-0.73). Oil stocks are off their feed a bit but not plunging.
It looks as if the bounce that tried to set up is failing and the last hour is still 20 minutes away. Not a lot of confidence the Brits will do what the powerful and rich want, i.e. vote to stay. I think it would be good for the British people to vote for their own sovereignty once again, but that is just me.
As for us, there were some nice moves early that are backtracking with the market overall. We will see how the last hour shapes up and if, repeat if, there is anything we want to nibble on ahead of the Thursday UK vote.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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