The Brits are voting and the markets are soaring.  By now, everyone has heard the doom and gloom from both sides of the debate, and now it is up to the people of England to make their voices heard. The polls are tight, but the bookies say ‘Remain’ wins big time. I think some shorts will decide to cover and reload if the market takes off as buyers will flock not only to momentum names, but also broken names that might be oversold. 

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All the major indices are in the green.  Financials are leading the markets higher. While we will not start to get any real numbers from the polls till after 5, thus far, anecdotally, it’s a close call.  The dollar is down as the Pound and Euro soar, as do many major currencies as more people seem to think that Britain will vote to Remain in the EU. 

This morning, we got May new homes sales which were rather disappointing. New sales dropped 6% to an annual rate of 551,000 compared to the downwardly revised April pace of 586,000.  Supply continues to be a low, however it rose 1.2% in May to 244,000, or 5.3 months, up from April’s 4.9 months.

On the jobs front, initial weekly claims dropped 18,000 to 259,000 from the prior week’s unrevised 277,000.  The 4-week moving average declined by 2,250 to 269,250.  This is 68 weeks with claims below 300,000 and is close to the 43 year low reached in March. 

On the manufacturing front, the flash Markit manufacturing PMI should expansion at 51.4 in June, up from 50.7 in May.