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Tuesday, October 07, 2008

Thought of the day...

Thank goodness we can't short MS.

And the SEC extends the ban, even in the face of undisputable evidence that it DOES NOT WORK?

> Pershing Square's Ackman says short sale ban hurt
> Short selling ban 'not working'
> CEBR Expert Blasts Government's Shorting Ban

And the broader market since the ban was enacted:

> Short sale ban hurt

edit - Now I am hearing the ban will be allowed to expire? I guess we will see.

There is a lot of blood out there today. The futures shot up on a coordinated move to cut rates around the world - but as of now (15-minutes before the open on Wednesday) they have given back all of those gains and appear poised to test the overnight lows. There are people a lot smarter than me who prognosticate on what needs to happen, but my .02 is we need a sharp downside move - exceeding what we have seen in the past few weeks - before we bottom and start to rally. It would be nice to see that happen today, with the markets printing a hammer-type candle on the charts.

All I know for sure is I am glad I do not hold positions overnight, and I feel bad for those who do given the environment we are in. Best of luck to everyone.



tapeworm said...

welcome back!

r u watching true blood?

David said...

I think they will let it expire, but then will replace it with something else. Maybe broader?

Ted said...

Trader X,

I have a question for you. On days when there are almost zero gaps, and/or the ones that do gap fail immediately showing no follow through, what alternatives can you do on those types of days? Thanks

Rick said...

As far as I understand, the ban on short selling financials expires tonight at midnight. The SEC claimed they would lift the ban 3 days after the bailout legislation was enacted.