Stock Market

[idrivea4banger]

I read everything posted to get some investment tips and still have no clue as to what yall are talking about. I'll go invest in hookers and blow for the time being.

[slow99]

Discussion here:

http://www.dfwmustangs.net/forums/showthread.php?t=15585

[347Mike]

Yeah.. I don't think the market is going to coming up for a while.. Theres several articles on sites like google and yahoo finance suggesting investors to not panic.. lol Everyone is going to panic.

[mustang_marc]

The US AAA rating just got downgraded by S&P...

http://money.cnn.com/2011/08/05/news/economy/downgrade_rumors/index.htm?iid=Lead

NEW YORK (CNNMoney) -- Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.

In July, S&P placed the United States' rating on "CreditWatch with negative implications" as the debt ceiling debate devolved into partisan bickering.

To avoid a downgrade, S&P said the United States needed to not only raise the debt ceiling, but also develop a "credible" plan to tackle the nation's long-term debt.

In its report Friday, S&P ruled that the U.S. fell short: "The downgrade reflects our opinion that the ... plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."

S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."

Rating agencies -- S&P, Moody's and Fitch -- analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans.

The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917. The country's new S&P rating is AA+ -- still strong, but not the highest.

In the days after lawmakers managed to strike a debt-ceiling deal, the two other major rating agencies have both said the deficit reduction actions taken by Congress were a step in the right direction.

On Tuesday, Moody's said the United States will keep its sterling AAA credit rating, but lowered its outlook on U.S. debt to "negative."

Even after a downgrade, the United States will likely still be able to pay its bills for years to come and remains a good credit risk.
What does S&P's downgrade mean? Share your thoughts

A downgrade really just amounst to one agency's opinion. Federal Reserve Chairman Ben Bernanke articulated that view in April when S&P placed the United States on credit watch. "S&P's action didn't really tell us anything," Bernanke said. "Everybody who reads the newspaper knows that the United States has a very serious long-term fiscal problem."

Investors have limited options for making safe investments, and Treasuries are effectively as liquid as cash. And other big countries have been downgraded and were still able to borrow at low rates.

At the same time, some experts warn that a downgrade could gum up the banking system and ripple out onto Main Street. Treasuries are used as collateral in many transactions between financial institutions and grease the skids of lending.

Consumers and investors could feel the impact of a downgrade. Interest rates on bonds could rise, and rates on mortgages and other types of loans along with them.

Government-backed agencies like Fannie Mae and Freddie Mac may also be downgraded. It's also possible that some state and local governments could also face a downgrade.

And investment decisions would become complicated for large institutional investors that are required to hold highly-rated securities.

[347Mike]

It isn't going to hold, people are just nervous.

Agreed. My stops kicked in and only jumped a little passed where I bought in so I got out once I saw the djia/nasdaq/sp moving lower. It was a risk I was willing to take and only lost a couple hundred bucks. Its good now because both of them just dropped 4/5% each. lol

[Broncojohnny]

It isn't going to hold, people are just nervous.

[347Mike]

Whew. I can't tell you how relieved I am to see green on the markets today after buying all those shares yesterday! Doesn't seem to be lasting long though, they are dropping pretty quickly.

[Denny]

Isn't silver taking a shit as well? lols. It doesn't sound like your odds Denny are any better than mine...

Sounds like a opportunity to buy on a dip. Both silver and gold are still showing bullish trends at the moment. But yes, if I were looking to sell today, it would suck a little more than if I sold yesterday.

There's a difference between playing the market and buying commodities for long term holding.

I can't lie. I play a little with metals in the market as well, but I'll keep money out and just jump in on a no-brainer move and get right back out. I couldn't bring myself to long anything right now (on paper).

I was referring to right now. I just thought it was ironic giving the current market conditions and how silver is shitting equally as much.

Not really. It was expected since a margin increase was announced, followed by shitty after shitty news for the industrials. Silver gets crushed and builds for way too many different reasons. That's why it's more volitile than gold. I just chose it as my main vehilce to invest in based on the fundamentals, technicals and global situation. It's my store of wealth against days like, well, today. If you see when I got into it vs. the stock market (in general), you'll understand why. Remember, I'm a nutcase who thinks the sky is about to fall, so my physical holdings are doing nothing but accumulating. I can still jump in and make some sort of play on a mining stock, future or ETF if I want. I will, however, limit my play into only the area I'm familiar with even though I'm by FAR not an expert on any of it. That way, I can base my gains and losses on my decisions and not a crap shoot.

I guess I don't see a 111% percent increase in a year, and a 9.7% increase in a month "shitting equally as much".

But then again, I put my money in a 401K and let it do it's thing, I don't have time to keep too much track of what's going down in either market

Just the last few hours of the NYMEX. LOL

Man, if I sweated every dip, correction, consolidation, whatever; I'd be a wreck now (even more so than I am). If I really just wanted to make some cash on silver, I would have sold at around $48. I know anyone can look back and make a call, but I did place a major put at that time and ran it down, jumped out a little early, but was OK with it.

I just use the silver like you guys would use a 401K, I guess. It is much easier than the day to day market shuffle. I tried that here and there, but I wouldn't recommend doing any of that unless you're day can revolve around it and you have a decent head on your shoulders SPECIFICALLY for analyzing everything happening and being able to make some solid, educated calls. Thank God I realize that is not me. Shit, just reading what little people like Jody put on here is enough to make me stick my fingers in my ears and yell, "LALALALALALA." Bless him for being patient and dumbing some of it down for me. LOL He can have that crap. I can see why it takes a fuckload of patience and intelligence to get anywhere in that world.

Funny thing, when I was working at the PD, people always wanted to ride along. I'm dying to see what those guys go through in a day. I want to do an investment banker ride along. That life is just nuts to me!

[347Mike]

ROFLMAO. That seems so familiar. Priorities.

[Hmbre97]

[Captain Crawfish]

86 dollar oil? any bets on how long that will last?

[Broncojohnny]

I invested in corn tortillas over flour for mid to long term but I wound up eating 25% today due to a margarine call.

That triple leveraged fajita ETF will get you every time.

I don't think anyone mentioned it but "short" is also another word for sell. Although you have to keep in mind that it is possible to sell or "sell short" something you don't even own, selling an option contract is a great example.

[momo]

I invested in corn tortillas over flour for mid to long term but I wound up eating 25% today due to a margarine call.

[slow99]

Surely you know what I am trying to say.. lol I am not holding a position very long, ie 2 days.

I figured daytrade/intraday but it sounds weird. I daytraded that. It sounds more like I bought and sold it several times.

I wasn't sure...shorting something means you are betting it will decline. Daytrade is intraday (think no net change in your position from one day's close to the next). Although technically, you're allowed to liquidate a trade and repurchase it intraday without it triggering a "daytrade".

I'd just say a "short-term holding" or a "trade".

[347Mike]

What are you trying to convey, I really don't know? "Shorting" a stock means you are betting it will go down. If you have a bearish thesis on a name, you short it. Ideally, it goes down and you make money.

If you mean you are owning it long for the short-term, it would just be a daytrade (intraday) or a swing trade (hold it 2 or 3 days).

Surely you know what I am trying to say.. lol I am not holding a position very long, ie 2 days.

I figured daytrade/intraday but it sounds weird. I daytraded that. It sounds more like I bought and sold it several times.