I think today is still not a right time because risky stocks are...

I think today is still not a right time because risky stocks are in favor. Tonight Yellen is going to deliver her speed.

I'm waiting for another market fear just right after her speed then the market will come back for the heavily shorted stock.

Excerpts from FNArena today.
Not Yellen, Yawnin’



The problem with trying to gauge the Brexit result at this late stage is that there are conflicting indicators. Three polls over the weekend indicated “stay” was in the ascendancy. A poll last night suggested “go” was coming back. Market commentators are ignoring the polls and looking to the betting market, in which bookies have “stay” as a firm favourite.



Global markets have factored in “stay”, with a dash of caution. Last night gold, which has an amazing track record of moving a day later than every other market, decided to fall US$22.30 to US$1267.70/oz. We recall that while all other markets were moving back towards a “stay” setting on Monday night, gold ended the session little changed.



Volumes on US stock markets last night were paltry. This is not something one usually associates with a session that includes a testimony from the Fed chair. Clearly Wall Street, too, is leaving central bank speculation for next week, but the reality is Janet Yellen was sufficiently vague in her testimony last night to the Senate banking committee as to provide no further insight on policy. Rate hikes are still in the offing, she suggested, before grains of salt were handed out.



We might note that the US ten-year bond yield rose 3 basis points last night to 1.70%. The yield fell from 1.70% prior to the Brexit scare to 1.60% at its height, only to now have returned back to 1.70% over a couple of sessions as the scare eases.



The fact that the scare has eased is a worry in itself. When markets were in full panic mode, the downside of a “go” vote was to some extent priced in. The upside was substantial. Now that “stay” appears to be winning, markets have returned to a more positive position. There is thus a risk the Brexit result could spark selling on either outcome – “stay” would be a relief, but to some extent is priced in, while “go” would be catastrophic.



Janet Yellen will testify before the House financial committee tonight. While lower house members are typically more aggressive than their upper house colleagues, no one is expecting any fresh revelations.