As it turns out, Mohammed Ali is not the only one that can shock the world. Our faith in the “possible” has been restored…maybe the little guy DOES have a shot, after all.
As I live tweeted the emerging victory for #Leave, with each city reporting their vote totals, it began to become more and more clear that Brexit actually had a chance. Gold started to spike…then the VIX started to spike…and the British pound began to plunge (to 30 year lows).
Then, at 10PM Houston time, it became clear. With 60% of the vote in, it became a near impossibility that “remain” could win. By then, gold was up $40/oz, the VIX was up 31% and Dow futures were off 550 points…which is essentially where we find things this morning.
Of my roughly 30 tweets during the vote, here are the two that seemed to resonate the most:
Ironic.The US fought/gained independence from Great Britain, but it took Britain leaving the EU for the US to begin regaining our freedoms
I’m feeling one emotion right now. My faith…in the “system” …is restored. We love our mates across the pond! Now we’ll do our part.
We must keep in mind that it will still take 2 years for the UK to officially leave the EU. But, at the same time, the EU and global establishment must now see huge risks that other countries in the 27 member EU block will follow the UK’s lead. Already, the odds are shifting to both France and Italy departing as well.
Greece may have been the first to vote on leaving…but now that the UK has pulled it off, one most important and striking fact is clear…the European Union is dead. Just typing these words gives me a chill. I just never thought it would actually happen…turns out my son was right…the little guy can still win.
Finally for now, know this; the markets detest uncertainty…and boy oh boy, is there plenty of that now.
Also, and this is most important…I will be watching closely…the European close. Should their markets close at the lows, with heavy selling pressure right into the bell, US traders will get very, very nervous about Monday. As in, a potential black Monday.
In 1987, as a 2 year broker, I witnessed Black Monday first hand. I watched veteran brokers make one mistake after another. The biggest lesson that I learned? We should look to “ACT” rather than “REACT”.
I will continue to do this in every update and recommendation that I make, throughout what looks to be a rough week ahead for the markets. As long as we manage our emotions we can avoid the mistakes that most will make.
Honestly, I have no idea where the markets will be in 1, 2 or 5 days. But I know this…unless central banks bail out these markets, the risk level for stocks is extraordinarily high. This could well be Europe’s Lehman Brothers moment.
The VRA now has more than 900% in gains, in just 3 mining stocks, since January 20th of this year. I also had all of my Subscribers OUT of the stock market! Instead, we own the exact investments ramping 10-25% higher today.
If you would like to join us, we have a special BREXIT offer, through this coming Tuesday.
For the first time, we are able to offer the VRA as a 6-month subscription, and at just $595.
If you would like to act, simply reply back to this email with “I AM IN” in the subject line (or send to: email@example.com)
We will have your VRA Membership active ASAP. Come crush the markets with us.
Until next time, thanks again for reading…Stay Frosty