The set up for a Brexit trade -- against the establishment mean reversion exposure -- is looking good in terms of rhetoric but not price action, where it matters most. Fear is being instilled in how elite institutional managers view the issue, as is apparent in a Bank of America Merrill Lynch report out Tuesday titled "If you go down to the woods today... ...it will be full of bears. Investors positioned for “summer of shocks”. But price action -- the value at which assets can be purchased -- needs to see additional downside volatility to make the trade risk-reward payoff appropriately positive.
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