We know that the stock market is rigged. We know that only thing that drives the stock market is greed. And now that S&P has downgraded the credit rating, explains why the market has been selling off for the whole week.
After the debt deal was done, it was natural to have a relief rally. But they knew that a possible downgrade is coming. And by mid-week they were 100% sure. And that is why the market sold off even in the absence of a trigger. People have been scratching their head and wondering why the sell-off when there is no actual bank or sovereign failure. And now we know.
Even today, after the NFP numbers, the market opened higher and within 5 minutes the market was in negative territory. Then something happened and the market reversed course.
So what is the deal now? Have they been promised QE 3? We do not know and we are wondering if recession is upon us and that is why the market is selling off.
From Politico:" Rumors of a downgrade filtered through a volatile stock market, causing the Dow Jones Industrial average to swing by 416 points as it teetered between losses and gains to close the day up slightly by 0.54 percent."
And here we are trying to beat them and make money in the stock market? How naïve we are!