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Well folks, the chickens are coming home to roost:

"Updated, 8:27 p.m. ET] The credit rating agency Standard & Poor's announced Friday that it has downgraded the U.S. credit rating to AA+ from its top rank of AAA."

Quick Take:

I am kinda sick to my stomach because I closed about 70% of my short positions this morning at the lows.

This is a sad day and this week has been more proof as to why you can't believe anything that Wall Street tells you.

The recovery/green shoots/bull market hoopla was nothing but a complete sham manufactured by government spending. I have been saying it ever since the lows in 2009 and I took a lot of heat for it.

It was easy to see if you covered your ears and didn't listen to the BS that was being thrown to you by Wall Street on an hourly basis on CNBC.

Get ready for one wild show on Monday. The unintended consequences here are numerous because our debt is no longer AAA which means many will be forced to sell it due to various covenants.

Money markets are a prime example. They cannot own any thing that's not AAA. The question now becomes where in the hell do they go with these massive amounts of cash if they can't sit in treasuries? FRN's perhaps? Does the dollar rally then or does it crash due to the downgrade?

I have no idea how this plays out, folks, but please be careful. Don't end up like many of the bulltards who have been drinking the recovery Kool-aid since 2009.

Do stocks now rally because treasuries are no longer safe?

I plan on sitting mainly in cash and seeing how this plays out before I make more trades. The only shorts I kept on were Deutsche Bank (DB) based on the Euro mess which I failed to even get to tonight.

Let's hope we don't see total chaos in the markets next week. Hold your breath and just pray that no one panics.

Source: U.S. Downgraded by S&P - We're AA+ Now