Saturday, June 25, 2016

Brexit Club

Will you recognize me?
Call my name, or walk on by?
Rain keeps falling, rain keeps falling
Down, down, down, down
--Simple Minds

Bulls weren't able to jam 'em higher yesterday and the major indexes closed near their lows. Dow was down over 600 points. Not real technical damage yet, however, as all major indexes close on intermediate support. For the SPX, that amounts to about 2035.

One sector that now looks broken are the banks. The bank index was off about 7% yesterday with many individual names considerably worse.

Next week should be interesting. Investors will have the weekend to ponder the meaning of Brexit. Margin clerks will also be busy this weekend informing clients to put up or get out.

If they are able to bounce early in the week, then I'll be looking for short side opportunities, particularly in the financials.

position in SPX

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