Thursday, March 7, 2013

NEW HIGH FOR THE STOCK MARKET!!

Dow Hits New Highs 4 Days in Row! Where Now?

A year ago, April 2012, everyone was yelling to sell. Now the same is being shouted. Yes, there will be pull backs. And, yes last year there were pullbacks and then the market went up, again.

Now, my guess is that this is a much stronger market than last year. The stock market has more going for it. Before the end of this year my outlook is that the Dow will be up 750 points+. The S&P will be up 150 points+. I would buy any dips, add in little by little. This may very well be the start of a four year BULL if there is no disastrous news. "Don't fight the trend and don't fight the Fed."

Thursday, April 19, 2012

Which Way Now?

It has not even been a month. After the market hit highs, it has been consolidating lower. Some great stocks have been hit. Good earnings impact for a short time, and then another Pullback.
Consolidation or sell-off to much lower levels? Still have the problem with employment and THE HOUSING MARKET. On top of that, it seems like the European 'Mess' is still playing havoc with the nervous market investors and the 'Punditds' who have been saying to BUY,BUY,BUY! but, next hiccup with any of this and the 'Pundits' yell SELL,SELL,SELL. Caution is the watchword. Ease in a little at a time. We probably won't see a strong move to the upside until this Fall (September)

Tuesday, March 27, 2012

The Big Guys Win

Well, a year ago I wrote about the strength gathering in the "Market Place". The Dow was at 12,000 and everyone thought the employment picture was impoving. The 900 pound gorilla of foreclosures and a real estate market in shambles was still in the room.
So what happens? The markets kept going up until everyone suddenly thought there would be a second recession and "sure enough" the rug got pulled out from under us. The summer and fall of 2011 had all the money running to hide, although the financial institutions never did let loose of their cash, read our money. Credit was a dirty word as far as the banks were concerned. And the Hedge funds still controlled the Washington insiders, read "LOBBY". Even with some changes in rules and regulations the Big Guys made money we, the public gave them, and still NO CREDIT for us and no help in the home front, read no modifications and home and property values still declined. Finally enough of the devastated home owners kept up the fight regarding "robo-signing" and fraud in the way loans were written up, read lie and sc@#w the public, and the rush to foreclose. The banks and financial institutions had the government backing and our money. Hey, why should they worry? So the 900 pound Gorilla got its fingers caught in the cookie jar. The result? A slap on the wrist and back to business as usual.
Oh, yes, Bank of America came up with a wonderful way to help the little guy down on his/her luck with late payments or foreclosures pending. "Let's turn them into renters in their own homes"! Does anyone remember "Share-croppers"? That's how banks turned farm owners into slaves during the Depression. They had the template as provided by Plantation owners ruling their Sharecroppers during slavery.
Okay, here it is a year later, March 2012. The financial institutions return the public's money after making two and three times as much on our money. Still, Little Credit for the Little Guys, credit for the "BIG GUYS". The markets rebound and three months of an up market in the Dow, NASDAQ, and the S&P have the pundits, like Cramer, screaming for everyone to get in and BUY. See, the Little guys and gals have been saving and cutting their debt and even with no interest paid by banks, they saved more. The BIG GUYS want it. Caution, look before you leap. Yes, there are great companies, stocks, like Apple and even Lions Gate, but they took chances, innovated, and MAKE MONEY. Yes, the market, read Stock Markets, United States equities, are up to new highs. IF, earnings continue to grow, yes the markets can and most likely will go higher. A year ago, in February 2011, I said if you are not in, be cautious, keep your powder dry, and wait for a pull back. There was a great pullback and an opportunity to buy in. For those that did, Now What? Remember the 900 pound Gorilla is still there, and he/she is still looking for a job.

Monday, February 14, 2011

Walk on Wall$treet update

It is February 2011. Spring is around the corner and so is the continuation of the Bull Market. We are all spending again, the unemployment rate is improving, so we're told, the Fed is pumping money into the economy and the Market has responded by nearly doubling in the last 12 months. So why is everyone holding their collective breathe? What could possibly go wrong?

Well, the housing market crisis is still the 900 pound gorilla in the room that Obama and our elected reps want to ignore. The deficit is reaching 100% of the GNP which means the country along with the several states are approaching bankruptcy, and the "bailed out" BALLED UP Banks and financial institutions are sitting on their hands holding on to cash ( or their S%#T)and refusing to give credit to any one but themselves.

Which way the market? Flip a coin. If you're not in the market now, too bad. Don't jump in , wait for a 2-5% pullback to 12,000 Dow. If you're in, stay in, but be aware of the gyrations to come. If you're a trader, best of luck buck-o, lose your a@s when you zig instead of zag, hopefully you're a derivatives trader, huckster, company - you all deserve to lose you're a#s's since you caused most of the misery with the help of the CFTC non-oversight. (They are trying to establish rules and are relying on the same bandits -Derivative Traders- for help writing the rules. Do they even understand the Option market or the "short" market or the out and out lies of "Securitization of Debt,F- Mortgages,and "Vapor Financing"?) I think Not!

Friday, March 19, 2010

The Next Shoe to Drop??

It is 12 noon on March 19, 2010 on the West Coast. It is a warm day going into the first day of Spring. The stockmarket, bond markets, and commodities seem to be doing well or at least in a holding pattern . My worry is that the holding patten may be because everyone is afraid of where we might land, or even crash. The best we may see is another emergencyu landing.
Why title The Next Shoe to drop? Well, there is a mood developing in the country, especially with ordinary citizens who are looking at the properties they or their families live i, worked for, take care of and see a "BLACK HOLE". Although Obama's house plan seems to be a god send for us ordinary folks, it isn't working. Do you realy know anybody who has been helped re-finance, or readjust, or get any kind of help from the banks or lenders on Homes, Houses families own and rent? Sure the Banks and Insurance companies were bailled out or now we know have just walked away from debt obligations while our "Representatives" Comgressmen and Senators threw money at them. Why should they worry. Now we are seeing major developers and owners of over-built shopping and business buildings default and walk away from those obligations. There is no cry of foul or moral terpretude, BUT let one beleaugered, hard working Joe lose a job or all the equity they built up in their homes and decide to walk away, the "Moralist" and two-faced demogogue politicians scream and point fingers.
Mr. and MS. Congressman - where is the American Public's Bailout?
And here is where the other shoe could and may very well come from, hey, what if everyone in the U>S> decides Not to pay their mortgage or debt for the next year until our "Representatives" force the banks and lenders and insurance companies and credit card companies into sharing some of the same kind of bailout they received in BILLIONS of OUR TAX Dollars.
Under water on your mortgage? Lost all your Equity? Well, the mood is developing, WALK AWAY> REFUSE TO PLAY "THEIR" GAME until the American People get heard and get relief. Otherwise the shoe drops and here comes the Depression. Uh, Huh.