When GM declares bankruptcy markets should drop correct?

I would like to go long again on some equity but I would rather wait for another drop. My thoughts were that when GM announces Ch11 there should be a decent drop on the S&P correct?

 

no - the market already expects it to happen. it's priced in.

 

I certainly expect them to declare bankruptcy and I think that is probably the view of most. It really should not be a huge surprise. The real news will be if any unexpected stipulations are announced with the bankruptcy.

 

the way the market has been reacting to news these days, you could even expect a post GM bankruptcy rally

 

"the way the market has been reacting to news these days, you could even expect a post GM bankruptcy rally"

Now that is behind us lets rally another 10%

 

Everyone knows it's gonna happen, so its not gonna surprise anyone.

 

it may rally the day gm declares but i am thinking that the reality of the sugical bankruptcy of chrysler and gm will be smash and it will take awhile to work out. this could weigh on the market.