Brexit, stage right

As I wrote yesterday, human nature dictated that the status quo “remainders” did not show up at the polls, while the Brexit voters did and so it goes.

And now we wait for the next shoe to drop. There’s a Lehman Bros.-type firm scrambling Friday morning to save itself, we just don’t know who it is just yet.

I have my eye on Deutsche Bank since their US shares will open at -17%, which puts the price at under $15 a share.

The flight to safety is paramount with gold soaring $70 and US 10-year below 1.5%. Dow futures are down 600 points with the S&P e-minis down almost 100 points.

While the Fed’s window is open, the line for access to liquidity may be long, since many in the market were betting on the remain as witnessed by the late-day flurry of buyers in stocks Thursday.

Central banks around the globe have pledged to be “accommodative” to the markets, meaning there are a line of black limos around the New York Fed this Friday morning.

So let’s see how the morning plays out. I think we have a difficult open, but I believe the US markets will improve as the day progresses unless we get the other shoe dropping today.

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