This is actually a big deal, the downgrading of France and Austria. However, for the most part, the market is giving it a big yawn, even the sovereign bond markets. Yields are little changed and the market is down a mere 100 points.
Child’s play.
As mentioned earlier, I sold out of my FOSL position–for the sake of raising money. Aside from WNR, I am getting clubbed to death in some other holdings–namely DMND and FSLR. This is to be expected.
I am tempted to sell more stocks, considering the euro is now at a 17 month low. This has to mean something, no?
My cash horde is now 32% and I am down 1% for the day. In the big scheme of things, this is comedic failure for the S&P corporation. Their vitriolic position against the equity and bond markets are evident, as they seem to time their downgrades to inflict maximum damage. If I was the dictator of America, I’d attach magnetic bombs to their SUVs.
In short, we are very overbought and this news can serve as a catalyst for a swift sell off, to the tune of 3-5%.
UPDATE: I sold out of WNR, upping my cash position to 50%.
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EPV time?
Fly, where are you going to double down on DMND?
not today
Way too many weird things going on over at DMND. Suicide, major shareholders baling out, Feds snuffing around……just sayin this thing has to find bottom yet.
it’s there……….”something”is trying real hard to take down dmnd and ipsu…both stories are interesting and should be evaluated accordingly. step back and deduce.
maybe the sell off is light on QE expectations? JPM not strong, S&P down grades.
QE seems to getting telegraphed a little, like days past.
The 3-day weekend pattern is well established. Why do you think these useless downgrades are coming out today? Angles only work until they don’t, but being long into a 3-day weekend has been a pretty reliable winner for a long time now.
I believe last time the downgrade came after hours on a Friday too?
I see one of the iBC favorites…SD (sandridge energy) is now advertising on Bloomberg. carry on.
Fly..Did you notice at 3am last night I felt bullish? I posted it in your comments. You do know what that means.
Somethings up with your hormones?
I got burned on that opening FOSL four dollar up move in about a minute from the bell.
Now, does that really makes sense, with a market down 100+ points?
I am not buying into it, holding/averaging on the FOSL puts.
Theoretically, you should make money. But betting against stocks with large short positions is unpredictable.
Good luck.