Monday, October 13, 2014

(NEW YORK (Reuters)-Rodrigo Campos)Wall St. leads stocks sell off; dollar slides on Fed views. Stocks on Wall Street tumbled in late selling on Monday as the technical picture soured for the S&P 500, while the U.S. dollar posted its worst day in a year after comments from Federal Reserve officials hinted at delays in expected interest rate hikes.The softer dollar lifted pressure off metals prices, but Brent crude oil fell to its lowest level in almost four years after key Middle East producers signaled they would keep output high even if that meant lower prices.Traders on Wall Street were bracing for the full onslaught of the quarterly earnings season, with many expecting the next move in equities to take its cue from corporate outlooks for the rest of the year.  Technical indicators dominated trading as the S&P 500 sank below the 1,900-point level and broke below its 200-day moving average.Energy shares were among the day's biggest losers, with the S&P energy sector (.SPNY) down 2.9 percent. Airline shares also slid, as news of a Texas nurse who contracted Ebola while caring for a dying Liberian patient triggered worries about travel. Federal Reserve officials said over the weekend that a sharp slowdown in the global economy could delay an increase in U.S. interest rates. Those remarks followed industrial data out of Germany, the euro zone's biggest economy, that raised concerns about global growth.  

(CERR INVESTMENTS). DOW down 223 today!  Big Industry is starting to really sell now due to global market concerns. Even Fed policy cannot stop this one. The only play in the game for the Feds was interest rates and the markets have keyed that in. When Fed buying stops in October we will see some interesting things. Price supports for stocks will be ending. Are we in a market correction now?  Small Caps and now Large Caps are bearish. Investors now looking for safety back in bonds to ride out the turmoil.  Earning seasons wont tell the true picture because of QE3.  A few things will change the course direction of the markets - get Ebola under control, end  QE3 and raise the rates.  The closer we get to 2015 the more big institutions will begin pulling money out of the markets. Some call it uncertainty, I call it free money to the banks and institutions.  If you don't think so, watch who provides the large money flows to the parties this elections. Watch the ads.  Big industry is selling to influence the Feds.  Just my view point.