They just banned short selling in US

[nitro]

To all.

The new SEC restrictions are somewhat fluid and have created a great deal of confusion. We have been in contact with the SEC and have received clarification on whether the trading of SSF are in fact affected.

Please be aware that the trading of SSF by customers whether buying or selling IS allowed.

I am aware that certain firms have released bullitens which are contradictory but you should see updates very soon.

We are in the process of listing additional names that appear on the restricted list and will keep everyone updated to our progress.

Best.

__________________
David G. Downey
CEO
OneChicago
ddowney@onechicago.com

 

[sprstpd]

Wait, I thought the market was going down because of short selling. What happened today?

 

[Buy1Sell2]

Quote from bidask:

who agrees with tme?

people want to short but they can't. nobody wants to buy either. therefore, we are going to be range bound.

We don't need short selling for the market to drop. Your analysis, and the government's, is wrong.

 

[Angrycat]

Quote from Buy1Sell2:

We don't need short selling for the market to drop. Your analysis, and the government's, is wrong.

Exactly. The Karachi stock exchange (trailblazer that it is) banned short selling earlier this year. After an initial 11% pop, the market fell to 25% below pre-short ban levels.

Shorts provide downside pressure when they sell and upside pressure when they cover - just like longs who buy and then sell. There's a long history of exchanges around the world banning short sales. It has never stopped a market going down but it has sucked liquidity and transparency out of the market on each occassion.

 

[sprstpd]

In fact, I would bet that every time in the history of man, when short selling has been banned, the market then went on to go lower.

 

[dont]

Quote from sprstpd:

In fact, I would bet that every time in the history of man, when short selling has been banned, the market then went on to go lower.

I remember it well, when the Greeks with their thousand ships were approaching Troy we banned short selling, and we know where it all ended.

 

[stock777]

Quote from sprstpd:

Wait, I thought the market was going down because of short selling. What happened today?

what happened is, you're an idiot

 

[sprstpd]

Quote from stock777:

what happened is, you're an idiot

Good one, you sure showed me!

 

[nitro]

I find this very interesting:

http://www.federalreserve.gov/newsevents/press/orders/20080923a.htm

"Press Release
Federal Reserve Press Release

Release Date: September 23, 2008
For immediate release

The Federal Reserve Board on Tuesday announced the approval of an application by The Shizuoka Bank, Ltd., Shizuoka, Japan, to establish a branch in New York, New York.

Attached is the Order relating to this action."

I think the Japanese are setting themselves up to buy distressed Ibanks. Or perhaps just to bid on distressed assets.

Could Goldman Sachs be a future partner of a Japanese bank? How the tables have turned.

Hmmmmmmmmm....

nitro

 

[nitro]

There is support SPX 1182 and ES 1182 since there is no basis between the cash and future.

If we go through 1182, it is probably a retest of the 1132.xx lows...

nitro