Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Here's What Will Happen on Monday

|Includes: SPDR Dow Jones Industrial Average ETF (DIA)

 Monday, August 8 is going to be a big day folks. As we all heard, S&P just downgraded U.S. debt. So here are two scenarios of what's going to happen.

1) The Fed intervenes, and supports the stock market. This theory is almost 100% guaranteed to happen, and stocks will make a big rally (because all the smart investors know that the Fed will support the market, and they themselves will buy). However, the Fed can't indefinitely hold up the market, so the markets should be prepared for a medium term steady decline. This is ideal for the shorts investor, becaue he or she can just sit back and relax. No need to worry about intraday fluctuations of up to 5%.

2) The Fed intervenes, and it doesn't work! There are simply too many sellers! In this case, prices will drop like a rock, and the good news is, that means it will be time to buy!