Sunday, May 31, 2015

Markets Have Paused!

buy and sell on blue road signCERR Investments:  It appears the markets are waiting for something to happen. Lately we have had some volatility occurring and the natives are starting to get restless. Real estate markets, Small Caps, and International Funds are waiting to see what is going to be the next trigger. Air Lines and Oil still have not found any legs.  Is it time to me defensive?    Tomorrow could be a good sign for the direction of the stocks if the Dow declines. Look for the Feds to come out with a speech to add confidence in the markets. The only game left is not to let anyone know when interest rates will raise. Watch big institutions head for the exit so they can have an excuse to sell. Remember they big guy has to make money but cant make it see like it was their idea. They need someone to blame like the Feds, interest rates, war, global warming, etc.  Feds influence has changed the game. Technicals and Fundamentals don't work like they used to. All you can do now is just watch the crown and try to determine when the exit doors start opening.

Monday, May 25, 2015

What Happens After The Holiday?

CERR Investments:  Is volatility coming now after Memorial Day is over and summer time begins?  Well it looks like things are shaping up that way.  REITS are down and Small Caps have paused.  Airline stocks are in the dumps even with low gas prices. What does this all mean?  Well the Feds are still trying to influence the markets by making us guess when they will raise rates. This game is not for the small investor but for the big institutions. The Big Guys don't know when to pull their money out of the markets due to the Feds. The rest of the investors are just  holding onto the ride because it is the best game in town. Interest rates on CD, Bonds, Money Markets, and Bank Accounts are so low that stocks is the only game in town that is seeing any growth. How long will that last? Right now it looks like the markets have hit a resistance level either pausing or going sideways for a couple of months. That tells me people are just waiting to see what happens next. However are the billionaires who are saying the markets will collapse pulling their money out of the market? I think not but when they do that will be a gauge. Image result for market depression

One interesting thing I am hearing is that market may start declining when baby boomers start retiring and are force to start taking withdrawals from their 401K accounts. Well that does sound concerning. Just think people will no longer invest their money in stocks? I think not. Baby boomers will still invest but at a slower rate and their kids will get what ever is left. If the market is good people will invest. It is only when you see things like "Fraud", "Credit Default Swaps", "Ponzi", "Greece", "Bubble" that you see people pull money out.  In order to make money somebody out their is doing some hidden things that will upset the markets once it is discovered and then the dominoes fall.

One last thing to mention is the ever presence fear of "War" breaking out someplace.  With oil prices falling a big migration has begun. People are leaving their countries in droves due to economic collapse due to falling oil prices. When hunger and poverty starts grasping these regions and the dictators can no longer hold up the fail ponzi states, then we will see real change..

Huffington Post: 

170 Kids On Their Own Among Migrants To Arrive In Indonesia

Washington Post: 

Honduran child migrants leave home because of poverty and violence

Saturday, May 16, 2015

Are We Ready For A Reversal!

Image result for stocksCERRInvestments: Stocks look like they have reached new highs last week mostly due to the Feds influence with interest rates. Could this rally continue a little longer? Pundits are trying to scare the market by coming out early saying there will be a reversal. I am sure they lost money the last couple of days by sitting on the sidelines.  For sure a reversal will come but it will take another type of catalyst to make that happen - overseas turmoil, negative consumer sentiment, bad news for companies, etc.  So far the news looks good until September but keep a good eye out for changes.  For now small caps, oil, REIT, and Gold have moved to the positive last week. I hope the change continues.

Wednesday, May 6, 2015

Market Pause!

Image result for volatilityCERR Investments:  Okay the market is on the move downward. Is that really the market or is that big investors trying to persuade the Feds again? Well I think it is the latter. No change in Fed policy until perhaps September so what is moving the markets? Profit taking is my guess. Big investors trying to move the market so they can get in at a lower price. I look for price moves to the upside soon because the small investor has seen this play.  

Tuesday, May 5, 2015

Markets Are Nervous!

CERR Investments: Markets seem to stall today due to pressures of high interest rate fears, Greece Debt, and perhaps time for a market correction. Small Caps, Airlines, and REIT Funds took a hit today. Big institutions are profit taking and seeing how things go. I think we still have room to grow especially since the Feds will probably not raise rates until September. However sooner or later things will change a little on the downside. But lets look at things, where is there opportunity for growth? Until banks start giving you more interest on CDs or money markets those still don't look attractive. It is time to look for the dips and see what luck you can find profiting that way. 

Friday, May 1, 2015

Market Manipulation At Its Best!

ThiefCERR Investments:  Wow wasn't it interesting to see the DOW fall right before the Fed speaks and then rally one day afterwards. The big investors are playing chicken with the Feds. They are pulling money out of the market to scare the Feds into not raising interest rates and it is working.  Now Feds may not raise rates until September. Who is getting hurt in the game? Well REIT Funds, Oil and Gas, and Small Cap funds took it on the chin and I am hoping for a rebound today. 

However now that High Frequency Trading is going on no one really knows who is buying or selling. The fastest computer is the one that wins the day. So one says the market is rigged may not be too far off. People trading on the news of what others are getting ready to buy is not a smart idea and not ethical. I am sure the big boys have been doing this for years and are just starting to get caught. The news reports are saying this is new revelations about the Flash Crash that happen in May 6, 2010 with Navinder Singh Sarao.  He is alleged to have been at the center of the so-called 'flash crash', which knocked the major US stock market - the Dow Jones Industrial Average - by almost 1,000 points during one 45-minute period in May 2010, triggering hundreds of billions of pounds of losses (The Telegraph). New revelations? This has been going on all along and those guys know it. This is stock market manipulation and insider trading. Up until DOD Frank was passed this was legal. The U.S. Department of Justice alleges that Sarao used souped-up, off-the-shelf software to trick other market participants into thinking massive sell orders were about to hit, causing the so-called E-mini S&P futures prices to drop so he could buy at cheaper levels - "Spoofing". In doing so, he made $40 million in profits, U.S. authorities allege (Reuters). "Souped-up Off the market software", really?  Any equity firm trader could do this. Only us small investors are in the dark.  Here is an example: April 30 (Reuters) - CME Group Inc on Thursday suspended two traders from its markets for allegedly colluding to enter orders repeatedly with no intention of trading, a strategy that has been fingered as a key contributor to the 2010 Wall Street flash crash.

http://video.cnbc.com/gallery/?video=3000272951