I'm of the opinion that events like this don't have any major influence on the market. Sure, it could lead to a brief short covering rally on Friday and into the next week, but ultimately I think things return to normal quickly after. Brexit is starting to remind me of something like Y2K where a lot of people freak out until they realize that the date/event is basically a non event. Brexit and a breakdown of the EU may eventually become an issue, but I think that will be years down the road.

Great article, and I agree that the metals and miners are looking vulnerable right now. I just wonder, though, if the Brexit panic will push these even higher. I can see a lot of people chasing gold and silver strictly because of the whole Brexit mania. No one likes to miss out, and Brexit seems like it could be the catalyst to a real blow off top in the next week or two.

IMHO, Brexit is probably an event that warrants a "buy the rumor, sell the news" approach if you're a trader. I own a little bit of GLD and some volatility instruments at the time. I plan to sell a lot of it next week when others are chasing these for fear of missing out on the Brexit panic. If UK leaves EU, it will likely be a domino that triggers others to start falling, but the process will be one of years and years in the making, I imagine. And if Brexit happens, it will still still take the UK years to make an orderly exit from the EU.

Doing nothing next week sounds like the best possible plan, though, for traders and investors.

I agree with not chasing these rallies. I have missed out by being patient, but it looks to me like the miners are hitting serious resistance. I would rather sit on the sidelines for now and not have the rug pulled out. We should be heading towards cycle lows in the miners, but I could be wrong about that. After all, I've been wrong about the metals/miners for most of the year now.

I am always amazed at how many devout gold bugs swear up and down that this is a new bull market. Everyone is reading that Rickards book called The New Case for Gold and anticipating massive (really massive!) moves in the yellow metal. I still don't see it, though. I'm inclined to think gold is more in a fake rally until I see confirmation. I feel like a lot of these gold bugs may end up getting burned really badly--or at the very least get caught holding the bag for several more years before their metals investments become profitable.

I sold $SLV calls and $AG shares today because it looks like silver could have a good bit of downside ahead. $17.85 looked like a double top, so the downside was too much for me to bear as a shorter term trader. I'm hoping cycle low comes around the end of the month so that I can scale back into the metals/miners.

Great chart! I'm waiting for a pullback to possibly buy a July call spread on GLD. Hopefully the Brexit panic will give gold a good pop to the upside over the next few weeks. I would not want to be a chaser after a $30-40 jump, though.

What #Yellen is doing reminds me of what I used to do in college: recycle papers from one class and turn them in modified form for another class. She has spent the year saying basically the same thing, just tweaking her statements a little bit. Eventually, though, there is that moment where you get caught recycling a paper or, in Yellen's case, saying basically the same thing over and over and hoping people will continue to believe it. CB credibility is close to completely destroyed now...

I hope there is a good pullback in the miners. I would love to add to my position, but I can't bring myself to do it here. Miners have gone up way too far, way too fast. I can imagine they will eventually experience a moment like WTI is now, where reality sets in and gravity abruptly and harshly pulls price down.

Although there are some interesting observations in this article, much of it was invalidated today as far as I can tell. The H&S was a false pattern as SPX closed well above the right shoulder today at $2090.54. Seems that the 2040 level is no longer really relevant.