I am waiting for the looming 1000 point drop.

Discussion in 'Economics' started by KINGOFSHORTS, Sep 20, 2008.

  1. Probably in october, with this idiotic short selling ban and foolish bailout which will disappoint anyways. This short cover rally will end hard and fast and I see NYSE kicking off the breakers.

    10% drop in the market, I see it happening.
  2. G-Boa


  3. It's definitely coming and it will probably happen shortly after they remove the short ban and then the media and government will blame it all on short sellers, like having toxic waste on your balance sheet caused none of it.

  4. ggoyal


    yeah for stocks.

    but as traders if you trade futures, i doubt they will ban shorting them because they were created for the purpose of hedging risk.

    that is it's primary function.

    i wonder if they could ban shorting just speculative purposes though. i mean, they could say only people with business interests will be allowed to short, no specs.

    i hope that doesn't happen.shorting has existed ever since these exchanges were formed.
  5. That's pretty astute ggoyal...
    If/When the "speculative" box on a futures account application is actually defined (as it is today, speculative refers to hedge funds as well as retail accounts), then trading permissions and margin requirements can be "regulated" by account-type

    Until then, as you've also stated, banning short-sales of futures can not happen... unless there is only one counterparty. :eek:
  6. they'll probabty extend the shrort ban 30 days..which would be around Nov 2,

    the election is Nov 4th...so if Obama wins and the market crashes...they have someone to blame it on
  7. neh...probably extend to the end of year......or worse, to the end of the century.
  8. i think crash will happen post election or end of October until then market rallys, mite even surprise some people how far it rallys AND THEN the drop
  9. I'm not 100% sure of this -- I just trade the darn things -- but if they banned short selling on futures wouldn't the open interest trend to zero?

    For example, you buy a contract and later sell it to another buyer -- open interest stays the same. All that happened is the contract changes hands. If a new buyer comes into the market and buys the contract from a short seller both parties are creating a new contract and open interest increases.

    If you can't sell short the futures you can only sell a contract you purchased earlier so therefore, at the least, open interest could never increase but only decline as contracts are offset. Open interest would eventually go to zero and the futures market would cease to exist.

  10. listed


    If this caucasianally(haha) challenged man gets elected...we are screwed. I would suspect we will touch 890 area on the S&P.
    #10     Sep 20, 2008