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.