Intraday commentary here: Shenanigans as Moody's Warns on US Rating.
I thought it was rather cute when Adam Johnson of Bloomberg pointed to the weaker price of gold this afternoon as proof that the Moody's warning on US credit rating is no big deal. Perception management at its finest, and most obvious.
At the same time the dollar was rolling over hard, but no one seemed to notice.
Goldman Sachs received a subpoena from the Manhattan DA, and the financial sector was pulling down stocks after yesterday's big sell off.
The equity market is looking for a reason to rally from support here. Groupon has an IPO ready to launch and the Street likes to welcome them in steady markets. Let's see if the Non-Farm Payrolls report gives them anything to cheer tomorrow.
I did take off the Financial Sector short today and yesterday from my own portfolio, and added unleveraged gold and silver holdings on the intraday smackdown today.
I do have an open mind about a meltdown in the US financial markets, but the timing seems a bit early for now, unless there is an exogenous shock.
Let's see what happens.
