Finally, tomorrow is the Referendum day. Brexit possibility is still in play but everybody expecting the vote to be "Stay in the EU".
Which is the problem then? Tomorrow everybody expects huge volatility on all sorts of markets: Equities, Forex, ETFs and else. I believe, every single poll, exit poll, news, rumour... will be used to push the markets down and clear off the shorts opened earlier this year. The environment is clearly bullish and only definitive results of the Referendum can reverse the markets towards a serious correction.
Therefore, if you want to play on Brexit tomorrow, I´d say: buy deeps. And don´t be worried if you suddenly see a pike to 2025 or even 2000: that´s normal. Once again, low liquidity environment is perfect to push the markets lower, close some deep shorts and wait until the market recovers with someone else´s money.
Remember Oil and Doha: there was a several figures pike which was bought out within less than 8 hours. Somebody just pushed the markets down to clear off shorts and hunt some stops.
Tips:
Beware of the increased spreads!
Take your profits on time, don´t be greedy! You will still have options for that next week. Remember: tomorrow is a very high risk and volatility environment!
Most brokers just ignore Stop Losses if there is any gap. Therefore, you can find youself in a situation, when a price gaps down 1 or 2 percent and your Stop Loss doesn´t work. Get ready to that if you will be trading tomorrow! That´s specially valid for Forex market
Good luck!
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Strategy remains the same: this is not a panic but completely controlled correction. Markets were pricing the Bremain but now facing the Brexit instead. After a storm, there is always a calm. In my opinion, now the deep of this decline depends only on verbal interventions
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To hedge the risks, if you opened longs at 2000 level, please move your SL to profitability level. The central banks are in the market and they are keeping this rebound from the lows.
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Posting in comment my current view on how far SPX500 can move by the end of the year
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Current wave movement update. There is a lot of life after Brexit!
I have a similar count and believe you are on the right track
captain_smollett
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Thank you, Sir! Glad to hear, eventually this will perform well
captain_smollett
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captain_smollett
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captain_smollett
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https://www.tradingview.com/x/tsUzRu5k/ Fibo 61.8% worked perfectly for now. Your references would be the 200 MA
Fibo 61.8% worked perfectly. Retraces can go as far as Fibo levels 50% and 38.2%.