01.16.12

S&P 500 Index Options Trading During Massive Market Selloff Due to S&P Downgrade


www.StockMarketFunding.com S&P 500 Index Options Trading During Massive Market Selloff Due to S&P Downgrade. S&P downgrades Fannie and Freddie, US-backed debt S&P downgrades Fannie and Freddie, farm lenders and bank debt backed by US government. Standard & Poor’s Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term US debt. The agency also lowered the ratings for farm lenders; long-term US government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options. All the downgrades were from AAA to AA+, reflecting the same downgrade S&P made of long-term US government debt on Friday. S&P said the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term US debt. Their creditworthiness hinges on the US government’s ability to pay its own creditors. Stocks plunged further after the downgrades. The Dow Jones industrial average fell more than 300 points, or 2.8 percent. The S&P 500 stock index tumbled 3.4 percent. Investors seeking safety drove gold prices up and Treasury yields down. Monday’s downgrades of the mortgage giants Fannie and Freddie reflected their “direct reliance” on the US government, S&P said. Fannie and Freddie own or guarantee about half of all US mortgages, or nearly 31 million home loans worth more than $5 trillion. As part of a nationalized system, they

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9 Responses to “S&P 500 Index Options Trading During Massive Market Selloff Due to S&P Downgrade”

  1. DirectAccessTrading Says:

    check out that etrade baby spoof…too funy! watch?v=N6oNJHvExBI


  2. TheStreeser1 Says:

    @StockMarketFunding Thats OK and understandable,these are hard days emotionally..

  3. StockMarketFunding Says:

    @TheStreeser1 sorry, Mario got really tired today after the close, we’ll get you tomorrow!

  4. StockMarketFunding Says:

    @smfprotrader it’s crazy, tomorrow is another day!

  5. Yep !!! we`ll be up …some day

  6. wtf, m so noob,i didnt get anyting at all

  7. TheStreeser1 Says:

    Out of shorts ,in cash , waiting for Bennie and Geitner to throw QE3 in the mix..Nothing wrong with taking a profit.. We want your opinion on PMs Mario..ZSL AGQ SLV UGLL and GLL and how about UCO and USO.. ?

  8. DailyStockCharts Says:

    we’ll get a bounce…some day

  9. OptionsSchool Says:

    Currency, world region, commodity futures, & domestic sector ETF & ETN performance: Safety asset ETFs (VXX, GLD, TLT, IEF, SLV) bid on global market meltdown; Yen (FXY), Franc (FXF) advance vs. USD (UUP); REMX (-8%), TAN (-7.5%), URA (-7.35%), SLX (-7.1%), & XOP (-6.75%) lead all domestic sector ETF decliners

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