I have to be honest – I did not think Brexit had a chance.  Apparently Wall Street didn’t either because trading on Friday was a disaster for equity markets around the world, with banks taking a particularly hard beating.  There was a very clear flight to safety with defensive sectors like Utilities and precious metals outperforming.  Speaking of precious metals, gold, silver, and the miners had a terrific day as you will see below.

The tide is turning folks.  Equity markets, depending on how one measures valuation, are at or near all-time highs.  Earnings have been declining for months and yet stocks continued to march higher (at least until yesterday).  Precious metals have been bottoming for over a year as both fundamentals and technicals continue to tilt in the bull’s favor. In my post from Wednesday I commented, “I feel like there is going to be a huge move soon, possibly in [both equities and precious metals], but I have no idea which direction it will be.”  Well, I think Brexit has given us the answer.

Today’s post will be chart-heavy with annotations and a few comments smattered about.  My takeaway from Friday is nothing more than a confirmation of what I’ve been saying for over a year: equity markets are topping and precious metals are bottoming – it’s time to position yourself accordingly. (more…)