Good daytrade stocks you can take either side of the trade and profit. Short or long. But I would not buy/hold those financials.
.."3) Rules has changed, you can't short the key financial shares. "... This upward boost from this is over (short covering, ie see SKF, back to where it started), stocks have gone down in the past just from normal selling. Frankly, I think Oct 1987, comes to mind ! If no recession, yes XLF may have bottomed, so if the CPI and employment come out better than expected, then maybe. Otherwise I dont think so. Food inflation leads headline inflation by 12 months, and that party is not over !
Rumors of short selling death were greatly exaggerated, both FNM and FRE were avaliable on IB today. I'm thinking if its worth to short one and go long the other to secure the shares then letting go the long when I want full exposure
I believe that the SEC's latest "order" will expire on June 28th, but can be renewed, but not to exceed 30 days in length.
Once they lift this ban shorts will most likely pile back in after most of these stocks are up 50-100%.
"There's a term for people/funds that were selling financials earlier this week: Bag Holders." There's a term for people long financials over the last 12 months -bag holders.
I am keeping my eye on them like a hungry leopard. I lick my lips thinking of the great feast coming.