Apparently the British polls earlier today were misleading in favoring the "Bremain" voters. The final voting count now shows that the "Brexit" voters have won 52% to 48%. So it's official now - the U.K. will be leaving the European Union. This decision is already causing volatility in many financial markets around the world, especially as it is coming as somewhat of a surprise due to yesterday's polls that pointed to Britain remaining in the EU.
Needless to say, this changes our trading strategy for equities as there is now a good chance the broad stock market will fall tomorrow, and we could be back on track for a cycle bottom late next week or in the first week of July. For this reason I am going to cancel the sell (cover) order I suggested in my previous blog and reinstate my short position in the broad stock market. Traders who are nervous about the volatility that could ensue tomorrow from this surprise Brexit vote may still want to cover their short position, but we will watch carefully any rally and be ready to cover if it goes too far. Holding my short position in the broad stock market.
We will remain out of gold, silver and crude oil for now as it is not clear how the Brexit vote will affect these commodities.