Day 368: Bottom or dead cat bounce?

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We saw the first recovery in the markets since the Brexit catastrophe. There were protests in the UK with people shouting “EU we love you!” and “We are European!”. Rumors are flying that the Article 50, the article that’s needed to be triggered to officially leave the EU, is going to take a bit of time, or even not signed at all. Equities had a good rally while the Vix eased up a bit. Some people are calling this a bottom and others are calling a sucker’s rally.

I’m cautiously optimistic for now. It looks like the markets may have overreacted from the Brexit and perhaps Brexit may not even happen for a while. I decided to take a long GBP/USD trade and hold for a bounce. There’s some relief rally going on so I’ll try to ride the momentum and escape if it’s a bull trap.

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