Saturday, December 19, 2015
CERRInvestments: Wow what a week to see stocks rise and fall. Interest rates going up and oil prices still falling - $34.73 a barrel. US enters the oil export business after years of objections. Get ready for more fraudsters to enter the market since the Federal Government is trying to loosen financial regulations. At the moment Small Cap Stocks still taking a beating. International Stocks are just trading water. REIT stocks are breaking even. Only game in play is Large Cap US Stocks and they just took a hit two days straight. I am hoping that trend stops. The market hasn't been this low since Oct 15. Now what happens with this new Government tax bill looking to get approved. Bet some tax credits will go to companies owned by our Congressmen. Lobbyist will be out in force trying to get free money for large ticket items. It is time to be defensive until we get a clue on what is happening out there. How come the big financial advisers missed this big drop on Friday in the markets? Yes -The third Friday of every March, June, September, and December is quadruple "witching," the expiration of three related classes of options and futures contracts, along with individual stock futures options. But does that have to cause an over 300 point drop? Has that happen in the past? If that was the case stock pundits would have been out warning people but they didn't. People who own the the trading system (high frequency traders), those that can see who is buying and selling, made a killing Friday by causing a dip so they could make a profit. I bet there were some big trading going on before the sell off. Get ready for more volatility. The game is rigged.