From IB Bulletin To ASX traders: Sun Sep 21 19:49:49 2008 EST The ASIC (Australian Securities and Investments Commission) has announced that it will extend its ban on the short selling of stocks to include covered short sales. This ban is effective for the open of the ASX today. The ban will be in place until further notice and will be reviewed in 30 days by the ASIC. More information may be found at the ASIC website. http://www.asic.gov.au SPI is up 238 points as of this post. This proves that banning short sales will indeed stop a stock from falling. Meanwhile back in the states the ES is down more than 10 points and the Dow is down 115 points (Sunday night right now). It appears everyone is right. thats right we are all able to correctly predict the outcome of the short bans. Yes the short banning will stop a stock from falling, clearly showing that this is a successful way to keep the market up. Unfortunately it appears the magical powers of the ban only works for a few hours before the market continues to reduce from the all time high just a short 12 months and 20% ago. Stay tuned for the next trick where the govt makes your life savings disappear
yah banning short selling only helps in the short term, pakistan did it and the only thing that stopped them from going do further was by not allowing any selling below a certain price therefore creating a floor.:eek:
After more than one delay Sydney did put down the fosters long enough to get the market open. Its up about 292 points as of this post and I just shorted the SPI (they havent stopped that yet) Something does appear wrong. The ES is down 14.50 points and the SPI is up this much means something is priced wrong. My bet is that the ES is closer to whats to happen and that the large move up in the SPI during the open is short covering. I guess I will find out soon enough. I traded it twice so far. First entry was short 5082 and I covered at 5075 as the packer game means my boys want me to watch it. Sat and watched a couple of downs and couldn't take it any longer, I really felt that the SPI is going to fall. So I went short again at 5089