The equity markets are set to implode at the open on Friday with the Dow futures down nearly 700 points. Cancel all stop losses.
The market is set to gap down significantly with the overnight futures down by record amounts. The Dow futures are down -675 and still falling. The S&P futures are down -102 and the Nasdaq futures -220.
Any active stop loss will be triggered at the open on Friday and it will not be anywhere close to the actual stop. Assume you have a $50 stock with a stop loss at $47. If the stock gaps down to $40 you will be stopped out at $40 and the options will be worth pennies. There is nothing to be gained by letting yourself be stopped out.
The UK voted to exit the EU and that was contrary to the best guess by analysts, politicians and investors. Europe is set to decline about 10% at the open and the Asian markets are down significantly.
Most analysts believe the markets will be volatile for only a short time then rebound. The actual UK exit is over two years away because of the countdown clock invoked when/if they file an Article 50 notice to actually leave the EU.
This could be the mother of all buying opportunities and I do not want to sell our positions to others that are buying the dip.
I repeat CANCEL ALL STOP LOSSES.
Enter passively, exit aggressively!
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