Cedar Rapids Trading Program

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Category: Using the Markets

Yahoo Keeps Disappointing

Yahoo is a major force in the web business, even though they don’t have the same pull that Google does. Google—part of Alphabet—is now a part of the largest company in the world, but that doesn’t mean that other web based businesses are all going to follow suit. However, what Yahoo is currently experiencing is very different from Google’s success. Yahoo just released their earnings report, and although they beat predictions on revenue, the company’s stock slid by 2 percent in afterhours trading on Tuesday, February 2nd. Further drops are expected.

For a company that analysts didn’t have high hopes for to crush earnings predictions should send a flurry of buyers to their brokers, but the exact opposite is currently happening. (more…)

Current Volatility Creates Tough Situation for Stocks

The October minutes from the Federal Reserve meeting reveal that they are getting closer to raising interest rates. With current events out of Europe, and the U.S. economy showing extreme volatility already, the Fed’s seeming inability to make decision is hurting the stock market’s ability to make actual progress.

Experts on Wall Street agree that there is a more than 65 percent chance that the Fed will raise rates in December, but even though this has been hinted at yet again, the same hints were being made for a September rate hike. And then an October rate hike. With crisis in Europe right now, it’s very possible that yet another month will go by with no rising interest rates. Smaller events have led to postponing already this year. Peter Schiff, one of the leading authorities that is making claims like this, gained fame back before the 2008 financial crisis for accurately predicting that banks had overextended themselves and that issues were likely to ensue. Whether or not he’s right about the Fed’s current course of action will remain to be seen. (more…)

China’s Government Intervenes

The Chinese stock market has been struggling for weeks now, and the government has just intervened to try and stabilize things. The latest step is to suspend initial public offerings (IPOs) in the major exchanges. The thought is that new companies tend to have a lot of hype, but that they often flounder soon after the IPO, dragging others down with them. Usually, this pull effect is a temporary thing, but if the stocks are already in rough shape to begin with, there might not be a long term result to deal with in the aftermath. By reducing the IPOS, there’s also a better chance that more money will be pumped into existing stocks, too.

This second point is debatable, though. Experts in the U.S. believe that if a government shows that much uncertainty about the stability of its markets that people will be hesitant to invest in the first place, which would have the same effect as having the IPOs. (more…)

Trading During a Correction

Correcting the MarketsMany investors are worried that the stock market is headed for a full out correction. A correction takes place when many stocks across several sectors have been overbought, and prices come back down to a realistic level. Whenever a bull market–like what we’ve been in–gets a little out of control, a correction necessarily follows as the market becomes more efficient and prices go down to a level that investors are more comfortable with.

Small corrections are normal, and in the ultra short term, they happen on a daily basis as prices oscillate back and forth around the most efficient price possible. The timeframes that you trade will determine how much attention you should pay to these little fluctuations.

However, everyone that trades on the short term needs to pay attention to the major corrections such as the one that many people fear will happen. It doesn’t matter if you are a day trader or a position trader, a major correction can last for a couple weeks (or longer) and will influence prices across the board. (more…)

Lessons from Indecisive Markets

It’s no secret that the stock markets are going through a period of uncertainty right now. On Wednesday, prices dropped all across the board in a loud and convincing manner. Thursday, however, marked a different type of day. Prices dropped, but then some recovered to finish positive, while others recovered to just barely finish down for the day. It was a confusing day, and it hints not so subtly that the next several trading sessions will also be confusing. The Dow Jones Industrial Average finished down 0.02 percent, while the S&P 500 finished up by a single penny. In other words, investors were unsure of what to do or how to act.

Sideways markets can be problematic for the short term trader, but you don’t need to let this happen to you. For one, markets never just stay flat. Even when there is little movement at the end of the day, there were slight ups and downs during the course of the day. Taking advantage of these tiny changes with the use of binary options can help you to make big profits, even when the markets and everyone else within them, have no idea what they are doing.

It works because binaries focus on direction, and not the amount of change like other types of trading look at. (more…)

Another Chink in Bitcoin’s Armor

Earlier today it was announced that Mt. Gox has found 200,000 of the “missing” Bitcoins that were reportedly stolen from the digital currency broker a few weeks ago. These coins were not stolen after all, but were actually stored safely in a forgotten about e-wallet. There are still about 650,000 of the Bitcoins missing, but some huge questions have popped up because of this discovery. For starters, why were so many Bitcoins completely forgotten about? Another big question: is it possible that the remaining 3/4ths that are still missing also in some “forgotten” storage location?

The bigger issue is that this proves how easy it is to mismanage something like the Bitcoin. If the world’s biggest and purportedly most secure Bitcoin broker can have such a huge error, how safe is the currency (more…)

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