After what we have seen in the last 3 years it would be stupid to assume markets will be allowed to tank So it's really dangerous to be out of the market now. Yes S&P can go to 1260 but then it will go straight to 1370 probably in 2-3 days Wait for S&P to 1370 and make sure to sell some stocks and initiate short bonds when regular auctions to resume then cover shorts and rebuy stock when FED announces QE3
Rally big on pass. Sell the news on the next day. Then, uptrend resumes... Fail -> Gold/silver goes to hell -> stocks down b/c anticipate deflation so postpone stock buying
As we have seen after today's trading day the market fears are leading the decline. DJIA down 1.5% and NASDAQ down 2.5%. This is one of those examples where the media and psychological influences will be the driving force behind the market. People ate told how much of a big problem this is and that stocks will sell off. Its a self fulfilling prophecy, if their is no deal the market will go down.
The sooner, the harder the fall, the faster the better. Let's get a major correction going so we can kick start the economy FOR REAL.
If case of Fail: Is it the dollar that would go to the roof or G/S that would go to hell? Is hell up or down?
If it passes its an automatic rally that will take the SPX back to 2011 highs, and I have to repeat myself again and say they will pass the votes to raise the debt ceiling by August 2nd, so stop listening to the foolish media reports and just buy stocks, simple as that! Buy the dips, the markets will completely erase all losses and trade at or near new highs come the next 2 weeks or so. Market will have a HUGE relief RALLY! HUGE!!!!!!!!!!