All futures are down this morning. Asian and European markets slid down on the Debt Ceiling impasse in Congress. This is serious. A sell off is almost imminent. I will most likely profit today but I don’t feel good about what is about to occur to this country. There will be blood.
Day Low = (10.20)
Day High = +339.50
Closed = +226.50 / +2.6096%
Up 336 points at the market open. Could be a thousand dollar day.
Well, following a low opening every index gained some traction, averting catastrophe for the moment. I’m still up over 100 points. Everything climbed moments ago after the President went on TV. Yet another “feel good” moment in search of a market rally.
Nothing has changed. We still have bills that won’t pass both houses and there’s almost no way to meet the August 2nd deadline. And there are still bone head Republicans who are making absurd comments like “we won’t actually default until August 15th”. They don’t get it. They won’t understand because they can’t. Isn’t it great to know that we have representation in Washington who are simply not smart enough to understand the real impact of a crisis they are creating.
This is the biggest roller coaster the markets have ridden in weeks. Down…Up…Down again. I am amazingly impressed how resilient the markets have been with the approach of this impending catastrophe.
Once again, the Nasdaq will not fall easily. It’s stubborn as hell. One thing I’m learning from all this is exactly how hard it is to take the markets down. People want a rally. They want the markets to work and the opportunity to invest in American business. My suggestion: corporate bonds. Not a bad bet since some of the big corps now have more cash than the Federal Government.
Looks like the day is going to finish down on all indexes, possibly not Nasdaq. It was a low opening, down 120 points on the Dow which has now recovered to -65 points. Not a fallout. I suspect the real run from the markets will occur on Monday, possibly Tuesday.
This morning everything opened low. There have been buyers on the sidelines waiting for prices to fall. That’s why this mornings low opening presented opportunities for bear buyers. That’s the reason for the quick rise this morning. They bought when shares reached their price point. They thought “this is it” and wanted to buy low. One problem: now those people are finished. They bought in during the initial downhill slide.
Monday should bring another round of early sell-offs. The difference between today and tomorrow is there won’t be such a big barrel of investors waiting to buy in low. They did that this morning. Monday will probably go low and stay low. No more bargains in the bin.
Oh come on! What the hell? A closing rally on Friday? That’s just BS. Maybe the Teabaggers are right. The market might not give a damn about the debt ceiling. But I doubt it. While other people are happy not to be losing money I’m pissed I’m not making any. This isn’t natural. The US government is going to start strategically defaulting on it’s debts and the markets don’t care? There is nothing normal about any of this.
And that’s it. What a day! I started up 336 points when the market opened and finished +226.50 points after the most volatile trading day I can remember in a long time. Actually I’m kinda happy the bottom didn’t fall out this morning like it appeared it was going to. That just means the fall out is postponed until next week. I’m going to Sadlack’s for a beer.
Day Low = (10.20)
Day High = +339.50
Closed = +226.50 / +2.6096%