Market players were anticipating a big move on the Brexit vote taking place today, but they were caught by surprise when the market decided that the Stay vote had already won. We had a big gap-up open this morning as a number of polls showed that Brexit would go down in defeat and that is causing consternation for many traders who are not positioned the way they would have liked.
We aren't likely to have the final numbers until early tomorrow morning but the action so far today is what you'd expect to see after results are announced. If the polls and the bettors are wrong, there is going to be major fireworks tomorrow, but the market is confident that it knows what is going to happen.
The big question is whether the much anticipated "sell the news" reaction is going to occur. The timing problematic as there is likely to be another reaction to the actual vote results in the morning. I suspect it will be even more likely that the bears will fade strength if we have a second gap-up open tomorrow.
While the indices are doing quite well and breadth is 5-to-1 positive, I'm not particularly impressed with the energy. The action is roughly flat from the open and I'm not seeing very strong momentum in individual stocks. This market has made positioning difficult and that is contributing to the choppiness intraday.
My Stock of the Week, Teck Resources (TCK), continues to act well and is pushing to a new high. I also like the potential of MeetMe (MEET). I continue to struggle to put new money to work but I'll keep looking for some new setups.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider MEET to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.