While the world awaits the Brexit vote our markets continue to act weak. We were able to finish off the lows, but this market is quite oversold and a bounce was not out of the question. A late afternoon rally helped take the sting out of the day’s losses. Financials led the market lower as it appears the FOMC will NOT raise rates any time soon. Banks need higher rates to make money and they are not going to get it. Aside from the FOMC the Brexit vote continues to near and polls continue to show support for Britain to leave the EU. Price action is not supportive, but we do have a few stocks holding up. For now, we continue to execute our strategy as the world awaits the FOMC and the Brexit vote.

Financials are quite troubling with their recent price action. DB continues to trade like it is going under like LEH. The entire group is trading like they are going to be disappointed by the FOMC. We do not need financials leading the way for us to see new highs. However, we cannot have the group making new lows. Banks need higher rates and for now it seems very unlikely the Fed will move rates higher any time soon. In fact, a rate cut Wednesday has a higher probability than a rate hike. 

We have stocks that are holding up. Recent IPO ACIA is holding up well along with WB and WDAY. The last few days have been mucking up stock charts. Until we seem improvement this market is going to be tough to trade for many. Do not force trades. Cut losses quickly and take profits. Enjoy the FOMC announcement.