Getting new rules from SEC especifically targeted at MMs. You won't see this on their site, http://sec.gov/news/press.shtml but they are new non-nonetheless. nitro
no one is buying!the MM can only buy up so much of the supply!INVESTMENT BANKS ONLY HAVE SO MUCH CAPITAL TO WORK WITH! THERE IS NO FLOOR-RETAIL TRADERS ARE SMART ENOGH TO NOT GET INVOLVED,MARKET NEEDS TO CAPITULATE PRICES WILL DROP BUT NO ONE IS ALLOWED TO PROFIT FROM IT EXCEPT FOR MM AND CERTAIN PARTIES THAT WERE SHORT ALREADY AND NOT SHOOKEN OUT BY LAST WEEKS RALLY!!!!!!! LAST TWO/2 DROPS IN MARKET MARKET MOVED ROUGHLY 35 % THAT WOULD PUT THE DOW AT ABOUT 9600 AND CHANGE-BUT THAT WOULD BE A NORMAL DROP-WE ARE IN THE MIDDLE OF A DERIVATIVES MARGIN CALL-ON PILES OF WORTHLESS PAPER POZI INSTRUMENTS FORGED BY GREENSPAN AND PHIL GRAMM-WE ARE HEADED FOR A BIG FALL-STOCK UP ON-FOOD IF YOU ARE SMART-BUT THEN AGAIN-STORES NEED US TO SHOP AND SHOP HARD TO BOLSTER THE NUMBERS SO USA IS SOOTHED PSYCHOLOGICALLY-EVERYONE NEEDS TO SIT TIGHT TIGHTEN THE BELTS AND WAIT IT OUT-GOD HELP US ALL HERE IS THE LINK http://articles.moneycentral.msn.co...al/another-devil-in-the-financial-crisis.aspx
I remember an academic paper that concluded that companies that actively fight short sellers have significantly lower long-term returns than those that don't, other things being equal. So I can't see the present bans on shorting as a bullish sign for those companies included in it.
Can somebody explain to me if a trader/institution whatever borrows stock in say GS and then sells it, how can the SEC stop them? If they have legitimately borrowed the stock not necessarily from their broker, how the hell does anyone know they are short. If what I say is true then those traders with access to pension money i.e. access to stock for borrowing have an unfair advantage?
dont I don't know what mechanism it is but when I execute a short sale it is marked as such. When there is a short sale ban, it doesn't matter if you can borrow the stock and deliver. All that matters is that the trade was a short sale to begin with and then Cox will come along and throttle you or your broker.
BS... Only if you fail to settle... If you have a reasonable belief that you have the shares or have access to borrow the shares than you are good even if you fail to deliver. Your senile grandfather said you could borrow the shares he keeps under his mattress... Your spoke to your broker and he said it would be no problem... The computer indicated the shares were borrowable... The SEC does not want to police or enforce any rules.. just idle threats. If they hang a small trader versus the behemoth whales they should be investigating... . They would have stipulated pre-borrow as a condition of sale in their Emergency Order. They clearly know the difference because they specifically state pre-borrow as a penalty if you fail to settle. They previously stipulated Pre-Borrow in July's emergency order. The SEC has 0 chance in enforcing these matters before the expiration of the order. Are these even emergency orders or regular monthly directives as they are coming out pretty frequently.
So Basically if you can borrow the shares and deliver, the only thing they have is that you flag it as a short sale, gee sorry I forgot, the client never told me. So ban really applies only to naked short selling. And of course the lenders of stock could also just refuse to lend it out. Probably because they, need it to sell!