You're dealing with the product of what the gutless scumbags in Washington have been doing for the past several months. They have cost perhaps a point of GDP in the second half because of their tireless garbage. The ONLY thing that is going to save this market right now is some miraculous report out of the blue showing good employment on Friday. Either that, or Bernake better pull a rabbit out of his ass in Jackson Hole later this month and announce he's going to be purchasing more assets on the longer end of the curve eg QE3, (even though, they're near record lows right now because of everyone pulling out of the equity markets in fears of a double dip recession).
If they are selling the market in fears because they think S&P is going to downgrade, then that is a big joke. Because, a downgrade to AA+ isn't really affecting the treasury market right now with the 30 year basically under 4.0%. Take a look at the other AAA rated countries. Is China going to buy all of their debt?? Give me a break. A downgrade doesn't matter, it's just scare tactic BS and its working.
I expect another big gap and crap once S&P announces they are NOT downgrading (give me a break..the USA will always pay their bills and they have the means to do it...this isn't Greece..there is a ZERO % chance of that happening and this won't even be questionned again until 2013). If they do downgrade, the US should immediately subpoena and arrest every single one of those people at S&P for what they did to the global markets in the 2000's with their awful ratings.
For me, I am a buying of ARIA at around 9 (not saying its going to get there). IMO, this thing should find support around 9.85'ish.
AI
