those who voted -10% probably have already got their margin calls last week and now wish others the same
I went cash before all this. I want fear and panic so that I can get incredible prices. I hope everyone buying gets SMACKED this week. US Downgrade is going to scare people, especially now that all their 401ks are down for the year. FEAR. PANIC. You should be FLAT. Trigger those stops! S&P 1000 let's go! Market must sell to discover the Fed's floor. The temporary floor is S&P 1000, that is where the market is going. Slowing growth!!! Multiple contraction! No one believes in this economy. Retail is skiddish. No one wants to be exposed to 08. They can get out now knowing there is a very, very low chance this market makes new highs anytime soon. Why buy now? Wait for lower prices. Monday - Tuesday, August 8 S&P down 6-10% Panic, capitulation bottom Tuesday - Thursday S&P sees technical bounce to who cares Friday - Market resells to who cares, lower high is formed. SELL signal. S&P is now a BEAR market, not a bull market. Lower highs, lower lows. FEAR. PANIC. LONGS WILL GET JIGGED. SHORTS WILL GET JIGGED. THEN WE GO LOWER. THERE IS ALWAYS A JIG. FEAR. PANIC. OBAMA. 2008. NO JOBS, NO HOUSING REBOUND, ARTIFICIAL BULL MARKET @ EXPENSE OF US DOLLAR. S&P 1000. LIQUIDATE POSITIONS. MULTIPLE CONTRACTION. SLOWING GROWTH. EUROPE WOES. U.S. DOWNGRADE. VOLATILITY. CRISIS. MARKETS IN TURMOIL. HIGHEST VOLUME SINCE 2008 CRASH. DOUBLE DIP. RECESSION. DEPRESSION. BARACK OBAMA. 2008. ITALY, GREECE, SPAIN, UNITES STATES. S&P 1000. BULL MARKET = HOPE. BULL MARKET = LOWER HIGH = BEAR MARKET. COLLAPSE. CRASH. OBAMA. 2008.
The only thing that I saw during the carnage of 2008 were guys too afraid to short because of the intense volatility, but never afraid to try and bottom pick just about every day. Case in point was crude oil. That market dropped from $147 to $38 and I literally never saw anybody shorting the market the whole ride down. Instead, everybody was certain that they had bought in at "solid support" and averaged down as it continued to decline. Basically, anybody who shorts the market (or was trying it in 2007-08-09) became conditioned for the massive snapback rallies. At some point, even the most bearish bears were just going long instead, figuring there was less risk buying every sizeable decline.
"Southern Europe is a tinder box and Merkel and Sarkozy promise to douse the flames in a few months time,â said Frank Schaeffler, a lawmaker with the Free Democrats, part of Merkelâs ruling coalition. âI suspect this crisis will catch up with the governments now and force quick convening of parliaments to get the new role of the EFSF in legislation.â
If this is a very size-able correction over the next few months where the SPX breaks a 1000 and heads even lower it will take decades to get the average investor back into this market, volume was so light leading up to this decline it was pathetic, it was basically HFTs trading the market day in and day out.
I rather listen to Warren Buffett than a rating agency like S&P. They probably have guys AND gals watching porn while at work. These guys don't have their money on the line. They can say whatever they want. If you believe their ratings, you are a fool.