December 9, 2015
The huge Institutions are SELLING STOCKS:
From Bryan Perry, newsletter writer:
That’s Fed speak for: We’ve been telegraphing this rate hike for months and, come hell or high water, we’re going to raise rates to save face in light of the fact that the most recent readings of domestic Chicago PMI, ISM Services, Retail Sales and Pending Home Sales all missed forecasts by a country mile. Plus, emerging markets are in a steep recession and China’s central bank is manipulating its stock market in the final hour of trading every other day to keep it afloat while tossing short sellers into hard-labor camps.
First up, we sold NTI on Friday. This was a refiner that we held in the Core Portfolio. It paid a nice dividend but it is time to get out.
As regular readers know, we use technical analysis. In other words we look at the “charts”. We have learned from experience that fundamental analysis (like that idiot Cramer uses) NO longer works. The markets have been manipulated for years now and you have to use technical analysis to really understand what is happening on a day to day basis.
Having said that, the charts are telling us that the highest probability for markets is UP…………at least for the near future. If you hold averages like SPY simply hold on. NOTE We are NOT saying the economy is in great and wonderful shape…..we are simply telling you what the charts are saying.
We recently listed numerous buy prices on exchange traded issues. NONE of them filled which speaks to the demand for income issues…the prices are simply not coming down to the prices we want. We continue to hold the buy orders and we still may get lucky at the lower prices that we want. We are also looking at several additional issues to buy.
Oils. A disaster and it looks like prices will continue down. We own several energy positions and we are getting hurt. But this will turn around….someday……. and we are holding. To sell now would be simply stupid.
The Core Portfolio holds primarily corporate bonds, exchange traded debt, selected bond funds and the disastrous oil issues. IT IS IMPORTANT to remember that if you buy corporate bonds, you must commit to holding until they mature. They WILL go up and down in value.
After the Thanksgiving we are now on diets!!!!!! If you are in the same mode, good luck. It’s a tough road.