Palpara Merchants

Substantive Finance

The Truth About Brexit and SPX New Highs

The truth is no one is leaving the EU tomorrow. We all know Brexit will never happen. We all know as soon as Britain votes to remain the SPX can definitively break through 2100 and attempt an overtake of all time highs. When the SPX closes at all time highs, the Dow Jones Industrials will likely be close behind. Then the trade will be to buy the transports because Dow Theory tells us transports have to make a new high and algos know this! So the algorithms will see that the transports are 20% from new highs and begin to ramp the whole index. I like DAL and LSTR the best. They both have cash from ops that exceeds cap ex+ dividends+ buybacks.

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