The U.K. has decided to just ban short sellers. Here in the U.S., there are open outcries to limit or prohibit short sellers. As a result, one big giant short squeeze has just ensued.
Think fast and understand that men with large red clown noses will buy banks, even if a nuclear bomb detonated on the exchange.
This little rally can last a bit, as people scramble to cover.
As a hedge, unfortunately, [[UYG]] may be a place to scalp a trade.
UPDATE: Panicked a little, I covered my entire Legg Mason, Inc. [[LM]] short at $30. And, I sold some [[SRS]] in the mid 90’s. However, I still have 90% of my position. Also, I bought some [[UYG]] at $17.
But, this new plan to kill shorts will not work. As a point in fact, it failed miserably in China this year, as evidenced by their exchange getting boot stomped by 60%.
Basically, I am getting all greedy and shit, trying to hold onto gains. Sometimes it’s better to do nothing and drink milkshakes. However, this is not one of those times.
UPDATE II: I sold out of my UYG trade, for a small profit.
UPDATE III: I bought 3,000 [[SKF]] @ $134 and 2,000 [[SRS]] @ $88.15.
UPDATE IV: I sold short 2,000 AXA (ADR) [[AXA]] @ $30.55
If you enjoy the content at iBankCoin, please follow us on Twitter
What are the odds the U.S.S.A. does this?
Ameritrade has zero shares to short for financials. I’ve tried them all.
That’s not a bad idea. Fuck with me, and I’ll do the same thing in our God fearing country.
Dame I-broker won’t let me short AXA, WTF!
Fuck with me, and I will fuck you up.
I am guessing SKF is going to be held by you? AXA may be under the rules in Europe, I was able to short via Ameritrade before the ban.
Anthony… I just shorted a financial on this squeeze using Ameritrade.
The next dictum from the Chair of the SEC will be right out of Woody Allen’s Bananas–
“Every financial stock trading under the value of 30 dollars, is now worth…. 30 dollars.”
Banning short selling is equvilant to price fixing. We all know how well price fixing works in a free market.
When you kill the shorts, who is left to buy?
This is going from bad to worse.
Anonymous … WTF … “Sonny”?
Donny dumps UYG at 17.50 and WINS again!
Fly:
Have you bailed on SRS?
This is getting crazy, banning short sellers? A move of desperation, which didn’t work very well in China where they have never allowed short sellers. This is going to kill liquidity even more. Meanwhile Russia’s market is still closed I think.
Robert Marcin
Disaster To Ban Shorting
9/18/2008 1:47 PM EDT
It would be a disaster to ban short selling. It would totally mess up the markets since investors could not hedge. They would be forced to sell all their longs if one could not do hedging. It would foster panic selling.
Position: none
I took an 8% net gain today and got myself out completely. I want to be 100% cash while the r-tards change the rules for short selling.
Bananas? Very funny movie. Pre-wierdo days for Woody Allen, I believe.
I am doing a bunch of things
I covered LM.
Sold a little SRS in mid 90’s
Bought UYG at 17
However, this is bullshit. It cannot last.
and what the fuck happened to karma? it was back this morning.
This close will be fucking historic.
-DT
Europe just pulled the biggest jack move every. I have been fucking robbed while watching the robbers do it. Communism at its best.
gap, didn’t you sell skf at 150?
Charlie… It keeps killing the datatbase and crashing the site. It’s pretty pointless anyways.
psych!
Yeah, it’ll work… like trying to put Chernobyl out by peeing on it. Hey! can I get some help over here!
Fly,
Is this a good opportunity to reload SKF and/or SRS? I don’t know how long they can continue to take away hedges without creating a much bigger problem.
Charlie I sold at 149 yes.
But I am booyah long SRS too.
DT- how so, with a pop?
I see it treading water, people waiting for something to drop tomorrow.
None of these jokers can keep the margin clerks from selling people out this afternoon.
My my black helicopters rain hell upon all short sellers.
Chernobyl had the meltdown after Boris Yeltsin peed on it.
True story.
gee…sure didn’t see this gov’t move coming.
..but, fuck, i almost bought some WB at 9 yesterday as russian roulette trade but didn’t. wish i had now.
so what about axa? I see this run up lasting till next week, then ppl will remember how fucked the banks are. No more tricks to pull from the hat from the ppt
“Basically, I am getting all greedy and shit, trying to hold onto gains. Sometimes it’s better to do nothing and drink milkshakes.”
Good idea. I’m going to go get a milkshake.
How do the casinos look for a nice short?
WTF with FED??
Is its new name “Costanza Bancorp?”
__
Today is absurd. The market is getting regulated after 30 years, the UK banned short selling, and Bush stumbled through a 45 second economic speech about nothing. Look at what Bernake and Paulson cooked up last weekend. No doubt there will be more huckery this weekend. Fly excluded, we’d be better off pouring drops of liquid creamer into our coffee and trying to predict the swirl pattern.
Well, things have muddied a bit, but if we can rally back up to 1175 on the futes before 3pm or so, I could see some panic short covering leading us into the close.
But I’m just a third-tier blogger and a communist. I know nothing.
-DT
If short selling is eliminated how much does gold get enhanced as a hedge against a panic? Gold jumped in response to this idiotic attempt at manipulation.
RGLD fuckers! RGLD!!
__
Jake,
fed, big short interest and is on the sho list.
DT –
If that’s true there’s a job waiting for you at cnbc.
But you’ll have to share a dressing room with Dennis Kneale and Cramer.
You still shortin GS Fly? or you coverin???
PALM into earnings … suppose to be doing well with their cheaper units … any players? Danny?
where is the news release on the UK short selling BS
anjing bau:
http://www.ft.com/cms/s/0/16102460-85a0-11dd-a1ac-0000779fd18c.html
bau –
http://www.ft.com/cms/s/0/16102460-85a0-11dd-a1ac-0000779fd18c.html?nclick_check=1
Jim Cramer has finally lost it.
We need “The Patriot Act – II”. Fuckers. Someone take me off the air please.
I covered LM.
Coward!
__
But I’m just a third-tier blogger and a communist. I know nothing.
Dino, if want to go for “full name change,” I’d be fully supportive. If you’re sensitive about the brand equity, however, I’d at least make the above your “sub-heading.”
Can someone please explain to me why these moronic funds lend their stocks to short sellers whose intention is to see the stock price fall as low as possible. This is not equivalent to shooting yourself in the foot but shooting yourself in the head. What aM I missing here because it seems like demented behaviour?
Just a few minutes ago Marketwatch reported NY reteriment Fund will stop leading shares to brokers of 19 bank stocks it holds , including GS and MS , the fund say it wants to stop the sepctulive behaivor which has hurt compaines…
McCain is a socialist – he wants more regulation – whatever happened to “free market capitalism?”. There is no republican party left – Bush destroyed it, along with america
Shorts must be covering WB like Tampa Bay Rays beating up on the BoSox.
Thanks for the update on SKF & SRS, Fly.
Thank God I didn’t short WB this morning which I was thinking about doing.
Anon,
I got your “Sonny” hanging.
http://money.cnn.com/2001/04/19/investing/microstrategy/
I want to fucking throw something…. thanks gasparino
I’ll take that CNBC job now…
-DT
thx Anton
thx Zen