Market Reaction to Standard & Poor's US DOWNGRADE?

Discussion in 'Trading' started by shortie, Aug 5, 2011.

Market Reaction to Standard & Poor's US DOWNGRADE?

Poll closed Aug 8, 2011.
  1. Down 10%

    33 vote(s)
  2. Up 10%

    12 vote(s)
  3. Down 7%

    7 vote(s)
  4. Up 7%

    3 vote(s)
  5. Down 5%

    16 vote(s)
  6. Up 5%

    2 vote(s)
  7. Down 3%

    18 vote(s)
  8. Up 3%

    14 vote(s)
  9. +/- 2%

    52 vote(s)
  1. Too early to say. Gotta see if Bubble Ben is going to warm up the printing press this weekend.
  2. the actual news when AH session was over, is this correct? there were no reaction AH to the rumor.
  3. I think the market reaction is going to be more about how much weight the market puts into S&P's rating system than about anything else.

    After their AAA subprime ratings leading up to 2008, it may not be so great.

    Also, as someone said on Bloomberg - this is going to be seen strictly as a Political move by S&P UNLESS they start to downgrade other countries like France too. European Central Banks are holding lot worse crap than the US Fed Reserve (Greek bonds anyone?), so they should get downgraded too. And the list goes on - and on - and on -

    Unless it was strictly a politically motivated downgrade.

    Also - who made that $billion dollar bet it would happen? Looks like insider trading to me....... :D
  4. What will this do to the price of peas?.....:cool:
  5. it could be a buy the rumor, sell the news.
  6. Where is 0% ??
  7. +/-2%

    assume "market closed" = "-10%"
  8. I bought a 129 ZB 5 day put this morning...

    But for different reasons...

    Wondering how far it goes. Each 50bp is about 6 points on the ZB around this part of the curve.

    My gut says treasuries go up just because Murphy's Law likes to give me the finger on a regular basis.
    #10     Aug 5, 2011