What a crazy day it’s been for the markets. I said we might have a melt up before the markets opened and we sure did today as the DOW took off over 200 points today when everyone was thinking the vote was going to be Bremain. I said futures may test that 2120 level when they were at 2097 and we got to 2117 today.
Gold has fluctuated down most of the day then up, and the same with silver after hours. Gold though is just $3 from where it was this morning at 2:30am PST when I wrote the first update to $1,268 and silver is down a penny to $17.43. But
After the polls closed, Brexit took off like a hare and gold/silver jumped and futures were down 44 points. Now everything is reversing again as Bremain has taken a slight lead. This should go on all night but I have to say, somehow someway, no matter what the polls said 2 days ago when I showed you the data, Bremain will win out. Call it a shocker if it doesn’t but because it is so close to call right now, this may last into the weekend as the penciled in votes are changed (ok, maybe not, but always ask for pen when voting and they hand you a pencil).
I will still lean bullish gold and silver for now, no matter what happens with the voting.
I will also say the market is going to top out sooner or later and I would be selling stocks on any moves higher, not buying new stocks. My book Illusions of Wealth will explain the reasoning.
8:10pm UPDATE
I was right about gold taking off higher, however, Brexit took the lead again and the polls I posted 2 days ago in Current Thoughts, so far at least, are holding true. Futures are down huge. Gold broke $1,300 but is just hanging around that level. Silver is up 20 cents now.
Dollar is the big story here, up 2.45 to 95.78. Yen is also stronger, but the Euro and Pound are getting hammered and so are all Asian stock markets. Everyone here knows I am dollar bullish and think it will get to 100 again and move higher. Right now we have gold and the dollar moving up together as a fear trade takes hold. But we should see a reversal in gold as the dollar moves higher to the 100 level. Gold can still move up to $1,400 on momentum and short covering and any move higher towards that number I would be a seller, especially for mining stocks.
I love craziness, but this is not over yet. Will we get another reversal? We’ll find out soon enough. Difference is 400k and London, which is on the Bremain side still has to complete its reporting. Fun stuff if you are on the right side of the trade by the time U.S. markets open tomorrow. If on the wrong side, it could be very painful.
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.