Market Should Rally Today – 2 More Brexit Polls Flipped To “Stay” – Yellen Speak

June 21, 2016
Author: Peter Stolcers, Founder of OneOption

Posted 9:15 AM ET - Two more Brexit polls came out overnight and they flipped from "leave" to "stay" by a margin of 47% to 53%. This news and "Yellen speak" should attract buyers today. After a shaky open we should grind higher and we could challenge the high from yesterday. The market jumped higher yesterday, but it was not able to hold the gains. I believe traders did not trust the two polls that came out over the weekend and they sold into the rally. This morning, there is more evidence that England will remain in the EU and I believe buyers will be a little more aggressive. The Fed will remain dovish and that will come out in Yellen's testimony this morning. Her comments should be market friendly. Hillary continues to pad her lead and it looks like she will be the next president. I'm not making a political statement; I'm just stating the obvious. The market hates uncertainty and it will have the clarity it needs to challenge the all-time high after the vote. I will day trade from the long side today. The market rally should gain traction early and we should grind higher the entire day. I only plan to trade the first three hours of the day. Trading volumes in the afternoon have been horrible. If by chance the market starts to falter and we make a new low for the day after one hour of trading, I will shift to the short side. This scenario is pretty unlikely. I don't plan on having any overnight positions Thursday. The vote is still too close to call and polls have been changing week-to-week. The surprise definitely favors the downside and a “leave” outcome would be devastating. I will wait for the results and trade accordingly on Friday. The market should be relatively quiet this week and Brexit polls will drive the action. . . image

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