Yep. Gasparino loves playing the boogie man with the AMBAC/economic collapse story. He's been working that pretty hard. I don't know, maybe he's right.
I love it. In the long-run you can't manipulate the market. And with the latest Fed shenanigans: what goes up must come down. Of course, unless institutions feel now is the time to accumulate shares. Looking at volume pre- and post-announcement, this idea doesn't lend much conviction. I say we re-test the lows and with more bad news likely to unfold - along with the Fed having shot their wad (and credibility) - we continue with the (down) trend. Even though many here say TA dictated two up days was a reversal??? So my covered call funds that ramp up gains off bottoms to corrections felt Mar '07 was an opportunity - until the perma-bulls felt we had to immediately move back up! Then August came and with it the hope for a correction along the lines we had in '06 - but NO the Fed "surprised" the market and back up we went. Then again in Nov '07 into the year-end to further increase volatility. So for a full year, perma-bulls continued to rack up huge gains, while my CC approach could "only" yield 12% for all of 2007. Things don't look so bad now since going completely into cash 04-Jan-2008, but I don't think the Fed gets it. The best stock fund I've seen was the IBD 100 that ended 2007 with ~50% in gains, but even that has been decimated these last few weeks to around 15% year-over-year (approx). You can only prolong the inevitable. BTW I started what I feel to be a much better approach using futures calling each new market rally within days and each market correction before most of the carnage unfolds. This is at Collective2. http://www.elitetrader.com/vb/showthread.php?s=&postid=1746913#post1746913 So a low margin index futures account is doing fine and I feel has some great promise. But the higher margin-version had me in "hold-n-hope" mode with the latest Fed shenanigans - before I could iron out my more proper margin schedule. It may be a bit to soon to tell - but I think this latest leg up is wearing out. Even the hold'n'hope fund (although now revised) has a chance to move up in stellar fashion. FYI the above link is not to my C2 accounts, but to some of my previous discussion here at ET. paySense
What a load of crap. What are these rating agencies for if there not going to cut the ratings of ambac and mbia, and they wonder why nobody will do any loans because the risk cannot be measured. Oh well I guess it's in my interest for them to cut the ratings since, I'm short the market. Anyways I feel somebody is paying somebody off because they should already have downgraded by now. If there not going to call a spade a spade then they shouldn't be around giving ratings.
Let's see what happens in Asia and tomorrow morning before we call "Uncle" (get it? Call Uncle? As in Uncle Ben? I kill myself!). I agree, though, if we're down big tomorrow, it's gonna be time for chaos and mayhem.