Market Reaction to Standard & Poor's US DOWNGRADE?

Market Reaction to Standard & Poor's US DOWNGRADE?

  • Down 10%

    Votes: 33 21.0%

  • Up 10%

    Votes: 12 7.6%

  • Down 7%

    Votes: 7 4.5%

  • Up 7%

    Votes: 3 1.9%

  • Down 5%

    Votes: 16 10.2%

  • Up 5%

    Votes: 2 1.3%

  • Down 3%

    Votes: 18 11.5%

  • Up 3%

    Votes: 14 8.9%

  • +/- 2%

    Votes: 52 33.1%
  • Total voters
    157
  • Poll closed .
Quote from FreakofNature:

Probably both with heavy whipsaws up and down just like last week.

FoN
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Quote from Random.Capital:

Before 2008, there was only one where it went to 50. If you'd played a heavy "oversold" on the 2008 tag of 50, you would have been prison-raped by an unsanded, ungreased two by four.

I'm all about taking gambles. Just don't do it in a way that leaves you dead if you're wrong. If the market decides to react strongly to this downgrade - in either direction - there isn't a stop loss in existence that will get you out in time.

This is as good a time as any to short. It's also as good a time as any to go long.

Time will tell which move is right.
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Iron condors?
 
Quote from shortie:

the general public does not appear to care about the downgrade. "downgrade" is not in the top 20 searches (according to google trends). as an example, searches such as "syphilis" and "the beaver" are more popular. http://www.google.com/trends/hottrends?sa=X
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Still quiet. I expected more excitement. I don't think anybody really trades or invests any more.

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TL from the 1350 drop has been broken, two small bounces above (1194 and 1184.75 pivots).

From a purely chart standpoint, I'm leaning long if the mkt holds above 1170.
 
The way I see it is: there are some traders (Paul Tudor Jones) for whom making the right call this weekend will make their year, maybe their career. And then for many others, you're making money just fine the rest of the year....

If you're one of these boring traders, and I think I am, I just don't see the motivation for playing with fire here. I'll give up the potential 10% rebound next week, if it mans I avoid the potential 1987 crash. The sidelines are a great place to be, right now.
 
Quote from number22:

first market will screw all these long, then it revers and screwing all those short.
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+1

pretty good description of market action in general.
 
Perusing the response thus far it looks like a gap down reverse but no traction on the upside until we wash a few more times. Unless of course another event trumps this event---Europe, FED, WH, etc.


This is like a game of "Hearts" also called screw your neighbor. The Quenn of Spades has been played but a lot of Hearts are still unplayed including the ACE. I am now long 12.5% the rest getting negative yield in Cash......Once we contract in the VIX there will be plenty of opportunity to get "LONG" if that's what is dicatated. There is no place to put money now except cash. Which once the capitulation is reached is gonna make equities soar at least short term.
 
I'm still trying to figure out where the money will go....bonds should drop, short term notes should drop .... stocks should drop....maybe foreign bonds?
 
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