Tomorrow will be the first day the US stock exchanges open up for trading since S&P downgraded the credit rating of the US on Friday from AAA to AA+.
So the big question is what will happen in the markets tomorrow?
In the middle east, the only place markets have opened since the downgrade the news wasn’t too good.
Israel’s stock market fell more than 6%, and the Tel Aviv 25 Index ended the trading day down 6.99%.
In Saudi Arabia, the Tadawul All-Share Index dropped nearly 5.5% Saturday.
We won’t know how the Asian markets are going to open until later tonight.
I expect a sell off of between 5%-10% tomorrow at least at the beginning of trading in the US
A 500 point drop in the Dow and 100 point drop in the NASDAQ it probably the best we can hope for IMHO.
Of course at the end of the day does the valuation of many high tech, company’s like Apple change because the US credit rating was lowered?
No
But you should be able to buy it a lot cheaper tomorrow
Of course the bigger question is how are we going to get job growth and the economy going?
What do you guys think?
Thanks insane clown party, way to cut government spending needs by raising the cost of borrowing to pay for the programs you’ve already spent the money on.
Even an idiot knows you cannot fight wars by cutting taxes. Even an idiot knows a tax cut never ever created one single job. Only unmet demand creates jobs.
But insane clowns are ignorant of those facts and fearing being a rino walk in a tea party lock step.
it will go up 3% or more
The news came out after the close Friday.
So will be a big down day tomorrow.
-569points
If the markets were rationale we wouldn’t see much of a move from it. It’s not like S&P is acting on some sort of new information we don’t already know.
It actually gives me hope that politicians will actually start doing something.
Oh, and let’s not forget that these are the same fools who rated a lot of those mortgage securities AAA.
HornJacker says the DOW will go up 800+ points next week from the opening bell Monday morning.
HornJacker is the #1 Sports Gambler & Trader in the World. Heed his words.
There will probably be an overreaction.
However, S&P, and other rating agencies, are not exactly full of credibility after their performance over the last few years.
They had Lehman at AAA a month before they went bankrupt, among other embarrassing ratings.
The entire world has a GDP of around 60 Trillion. US alone is nearly $15T, or 25% of the entire world.
The total debt is about in line with (1) year of GDP.
Countries that are considered to be doing financially well like Germany, Canada, UK have debt of around .75X – .85X GDP.
Other countries like Japan have a debt that is 2X their GDP.
It is all relative. $14T Debt is a huge number, but it is not that far out of line considering our GDP.
The problem is more down the road with unfunded liabilities. To solve the problem everything has to be on the table. Spending cuts, raising revenue, etc.
You can’t have a real discussion when options are off the table (AKA tax cuts for the rich, entitlement reform, big business tax loopholes, etc)
Brad
It looks bad not only for tomorrow, as much of the world is cross-invested in the market now. Only with some super-good news are we going to see a directional change. Too many uninformed investors will turn fear into panic. It could be a rerun of what we just saw a few years ago. Stalling just enough to let the people out at a huge loss and continue sinking for awhile.
US Treasury rates are unchanged right now. Very interesting. Stock market futures off 1.7% last I looked, minimal compared to all of the 5% and 10% selloff predictions. Will see where we close on Monday.
Buy the rumor and sell the fact.
In this case, they sold the rumor. I think Monday they will buy the fact.
Dead cat bounce anyway.
The market will do what most people don’t expect.
Buy when other people are selling.
Just my opinions.
Buy the rumor, sell the news… The S&P downgrade was a rumor leaked to the market on Friday. While the downgrade was quite unexpected to actually happen, much of it is already baked in to stock prices.
I’m calling 1167 on the S&P 500 the bottom. We’ll probably gap down close to that number at the open, and then short covering and repositioning of money into utilities, consumer staples, and healthcare will probably carry us to a flat close.
On Tuesday we have a Fed meeting. They will probably come out with inflationary policy that will have the shorts running for cover.
which stocks would you recommend shorting tomorrow?
I think the stock market is going to drift lower till the end of the year…while the general economy slowly recovers!
Short LNKD, P
Actually I’m calling 1157 on $SPX as the interim bottom.
With US dollar and treasury bonds in such bad shape, it actually makes more sense to own quality companies like AAPL and XOM.
Spot gold broke resistance level of $1700.00 at $1,703.90 midday in Hong Kong.
Gold, Silver Jump on U.S. Downgrade
http://online.wsj.com/article/SB10001424053111904007304576495173349248698.html?mod=googlenews_wsj
BLOODBATH
GET OUT NOW !
WE ARE GOING TO BE GOING DOWN TIL OCTOBER 18TH AT LEAST.
CRASHES SEEM TO HAPPEN AROUND THE HOLLOWEEN TIME.
BOO HOO !
I changed my mind…I’m going to be a buyer…buying call options tomorrow for aapl and goog
@ Robert
Is your track record with the stock market as good as .CO?
I guess it is time to get out of the stock market, and move to safe havens like Gold and .CO domains. LOL
Brad
@Brad
I have.
I bailed last week.
Seems the public which invest in MUTF having no clue as to what’s in their packages are starting to react. They will exchange at bad times, and that’s going to spoil it for the rest of us.
I bought aapl, goog, bidu today…good opportunity to buy today…sell within a week or two for huge gains.
Well at 1:45pm the Dow is down 400 and NASDAQ is down over 100
Looks like I made a pretty good prediction last night
@ MHB, good call! The day isn’t over, yet, though.
What Warren Buffet said:
http://www.foxbusiness.com/markets/2011/08/05/buffett-to-fbn-sp-downgrade-doesnt-make-sense
Yep, there it goes!
Oh, my goodness! Below 11,000!!! That’s a psychological marker!
Unfortunately it looks like may hit the top of my range
1,000 on the Dow
Did you all heed my word.
I told you it was going to drop 569 point drop
last night.
I am god.
you all need to donate $25 via paypal email host@epier.com
and I will tell you my next big prediction just to you.
You get what you pay, and in my case you will get 100x more than $25 value.
oh also, yes,
.Co is your new KING.
Robert
You are too funny
I predicted 500-1000 on the dow and 100 on the NASDAQ
No paypal required for me
i’m down around $20k today
i bought aapl at $359
i bought goog at $551
i bought bidu at $134
hopefully by the end of the week…i’ll be back in the plus!
Stock market crash, Bristol, Birmingham & Londons burning, not bad for a boring monday.
Get ready for meltdown, coming to a city near you soon
I think its too early to buy
But best of luck
Too early to buy. The aftershock is still going around… Japan and Australia opens down again tonight. The world markets are too cross linked now for anyone to come out unscratched.
LOL
Funny how the fantasy big money stock traders all come out with their fanatsy paper trades.
Woulda, shoulda, coulda..
Meanwhile in real life they are trying to flog $500 domains, if that, before they reach the graveyard…
Day after day they immerse themselves in worthless domain blogs & forums where they say the same old sh!t 10 different ways..
After the fact, the asscolwns come out with their stock market theories & cliches: buy the dip, sell the rumor etc
Well…if you were so smart why didn’t you make huge futures/option bets on indices based on the fact that the US economy would be downgraded…?
yesterday, i was down over $20k in just one trading day…
i had bought aapl, goog, bidu yesterday…
and today…
hahahahahahahaha…..
today, i sold aapl, goog, bidu….for huge gains…just like i said earlier in the post yesterday…
hahhahahahahhaa…..
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Anunt
Good for you
Now if your were really smart you should have taken all the profit you made and bought Demand for a day