The Brexit Aftermath …

Some context for the market moves we saw last night while the stock markets were closed and the currency markets were open:

This British Pound move is bigger than the Soros crash trade. 

And for S&P:

The volatility index spiked 60 percent….overnight.  So many people are really caught off guard. 

These three charts plucked from over 6,000 shared yesterday on StockTwits will hopefully give you a taste of the panic. Many hedge funds will implode in the weeks ahead from just last night. 

The next few weeks will be a little wild. 

Other than Phil Mickelson and every finance Twitter person who got this right …the important thing now is to figure out what to do next. 

I doubt I do much because a lot of the best opportunities for short term trades happened in the middle of the night.

I think it’s ‘funny’ and by funny I mean a complete sham that just yesterday all the US Banks passed their stress tests.  This morning many Europan and Asian banks are at 15 year lows. 

I think you avoid Europe as usual – unless you have a big edge, like to travel and enjoy  cheese. 

I will read less and watch prices more because I am looking for dislocations to trade. 

In the US I’m still mostly watching. Donald Trump is just a little too close to the Presidency for me to do anything super aggressive. I will keep hunting for great entrepreneurs and helping those that we have already backed. 

Just yesterday Narvar (a portfolio) company of ours raised $22 million (pre #brexit). I will be with them at the LVMH digital show in Paris next month having a glass of champagne and finding them some more customers. 

StockTwits always benefits from insane market events like these as traffic spikes and people check prices and look to read more opinions than they need to. We will just make sure to hold as many hands as we can and keep the site running smooth. 

Great consumer stocks always get through this so that is where I always end up putting some drachmas and bitcoins and shekels as we trade lower. 

Hope this helps.