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Since I received a fair amount of positive feedback on my "executive summary" of the market broken out by time frame, I thought I'd provide another update this morning. It is my sincere hope that you might find a nugget or two in the following assessment of market conditions/drivers.
SHORT-TERM (1-30 Days)
Unless you have been living in a cave without access to internet or even a cell phone, you are likely aware that on the day after tomorrow, the U.K. will vote on whether or not to stay in the European Union. Prognostications are all over the map on this one with folks like George Soros calling for the end of the world should the "Leave" vote carry the day while others suggest that "Bremain" is already priced in.
Digging into the meat of the issue, I think the big fear is that if the vote favors a "Brexit," asset flows will follow suit. In other words, traders worry that if Britain votes to leave the EU, money will flow out of the country's banking system en masse. As such, this explains why the banks have been in focus across the pond for some time now. And on that note, remember that all is not well with the banks of Europe and that large amounts of money flowing in the wrong direction could produce, as the British might say, a prickly situation. So, investors should watch the action in the banks as a "tell" for what to expect next.
Before leaving the subject, it is also worth noting that the stock market is really none the worse for wear in the face of the Brexit uncertainty. With just one day before the vote, the major indices are just a ...
