European markets are really picking up some steam, as the BREXIT vote gets underway in Britain. The voting just started a few hours ago, so the rally must be predicated around some polling data of people sleeping and/or how many of them walk outside with a cup of coffee in their hands vs tea. Rumor has it, it’s the tea drinkers, those devilish bastards, who want BREXIT.
SPY futures soar.
Germany rejoices.
The yen is plunging vs the dollar. This is porn for Kuroda.
Imagine if the UK voted to leave? Thank heavens the tea drinkers slept in.
If you enjoy the content at iBankCoin, please follow us on Twitter
Didn’t Yellen cite Brexit fears as a reason to hold off any rate hikes? Wouldn’t that mean a Bremain vote will increase rate hike odds? That, and a sell the news approach could make for a nice shorting opportunity perhaps.
Good point
Shorting gold, that is.
Think of what has been supporting gold this year. Basically just two things: Brexit insurance and neg rates abroad/no-mo hikes domestically.
If Brexit goes we are left with the original impetus for gold longs: low/neg global rates.
If Brexit does not happen and there is a relief rally, curves may steepen as the future seems less bad and that would annihilate gold. Everyone is long.
Worth noting that claims came in today at 259k… very low. So the idea of a monstrous relief rally is entirely possible.
Yellen is a flake.
Do you think Bernanke would be swayed by Brexit, or even be foolish enough to state is so obviously?
Markets a frighteningly good at predicting elections.
Still a major league bull market underway, toughest thing to do right now is buying in on selloffs and not hiding in too much cash.
Does anyone believe Yellen won’t discover another “reason” in the next few weeks to table a rate hike? Surely there’s a questionable data point somewhere out there that can be inflated, while the deputy Fed members talk up the other side. Seems to me like a Good Cop/Bad Cop ploy to walk the market sideways past the election. I’m just doing the same thing I would’ve done anyway, because I think they’re all insane and you can’t outsmart lunatics.
Good post.
They’re perfectly sane. The Good Cop/Bad Cop is having exactly the result they intend, keeping the markets trading in a range, not skyrocketing or plunging deeply. Yellen and the other Feds are thinking “If it works, don’t fix it.”
The tea drinkers are flooding the streets of London…
http://www.msn.com/en-gb/news/uknews/uk-weather-travel-chaos-as-torrential-downpour-causes-flooding-in-london-and-south-east/ar-AAhwsCq?ocid=spartandhp