Buy The Dip?

The market traded lower briefly on news that Spain was downgraded. I thought about making a quick purchase for a flip as the market is very oversold on a short term basis. However, I looked at all the call buying and said no thank you.

4 comments:

Anonymous said...

smart move. Other countries will be downgraded shortly.

Anonymous said...

If you ask me, the bears are running out of countries. If we are going to close up on the day that Spain gets cut what leads you to believe we will go any lower on an Italy or Ireland cut??

JD

PJ said...

Well, we got the move up on the Fed announcement I expected. Our rulers must always receive a positive reaction.

JD, heh. I guess we will just have to wait until everyone is equally bankrupt, and all go down together. No lifeboats on this Titanic.

PJ said...

JD - One consolation for the bears - though we may run out of countries, we won't run out of losses. A week ago Greece needed 30 bn euro; then it became 50 bn; now it's 100. At this rate, we'll be in the tens of trillions by summer.