Market Briefing for Friday, June 17

Global market risks aren't subsiding despite too many pundits jumping right back on the bullish bandwagon and immediately talking about phenomenal melt up style rallies. Of course you can get drama like this; but sustainable advances normally require either favorable monetary policy (not cowering at zero or NIRP central bank stances); or 'actual' substantive earnings and revenue gains.

You don't have the latter; which lends credence to the prospect that Thursday's action was no more or less than what I was concerned about late Wednesday; which is why we were willing to stay short overnight; but even then cautioned it would be necessary (or wise) to not press luck in the middle of Expiration; and get to the sidelines.

So the idea was to close-out any overnight short-sale at the latter portion of the first hour, which worked-out well. So many things happened today that I'll just focus a summary via a single video. There's every prospect that aside the 'oh maybe they'll postpone Brexit' relief rally (and that decision was not forthcoming just a suspension of campaigning for the moment); much of this was a heavily laden short-covering rally based on the preceding decline; the aspect of taking out technical support (trigger after-the-fact algo or system short-sellers); then a snap-back augmented by Expiration unwinding of futures & options too.

In sum: this could be a glorified 'dead-cat bounce' (no insult to dead cats); while it's not clear. We're flat actual scalping; totally avoided trading beyond taking the early holdover gains from the prior session, which were actually very solid.