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Mild Reaction Turns a Bit Ugly

What started out in pre market trading to be a mild reaction to the Fitch U.S. debt downgrade turned a bit ugly as the day wore on with the S&P500 off about 1.3%. Of course more than likely it was just a good reason to sell – after the strong rally everyone was in FOMO mode so this was a good reason to reverse course for a day.

The 10 year bond is up a couple basis points to the 4.07% area–not much of a move.

Preferreds and baby bonds are red on the day – not massively, just around a 1/2% (10-12 cents) on average. Banks and insurance company’s appear to be a bit redder as folks are taking some of their profits off the table. My sell orders didn’t execute as I have a greedy limit order in and whether I sell this moment or next week is of little consequence.

We’ll see how today’s close comes off and see whether we will go ahead and sell off some more tomorrow or if this is simply a 1 day knee jerk reaction.

4 thoughts on “Mild Reaction Turns a Bit Ugly”

  1. Tim, The bell still hasn’t rung. One of my limit buy orders hit. Things starting to look tasty but I question about getting too excited UMH D starting to look good but I have to remember they have been going to the ATM to borrow. GMRE reporting after the closing. Medical properties are like other commercial REIT ‘s. There are A, B, & C properties and similar grade tennents to go with them.
    Comment on the knbc news radio that with the real estate rents dropping in (Santa Clara) businesses are moving out of grade C and getting deals on renting grade A properties

    1. Charles – bunches of earnings today in headlines of interest. I have little dry powder so mostly watching.

  2. Tim,

    You appear to be getting pretty bullish lately as FOMO, Fear & Greed, and sentiment hits extreme levels.

    1. legend.vs – I am never bullish–always scared. I don’t own common stocks so I am just an observer.

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