I will make this short and direct: if I was heavily short stocks here, I’d be fearful of obscene last minute buyers, stepping in here, trying to avoid being stranded on the sidelines. This market has demonstrated, over and over again, it does not want to go lower. Hence, why fight it?
Tomorrow I will allocate some serious coin long. In the meantime, keep an eye out for a late night post, on PPT, outlining my new hurricane watchlist.
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FIG
So first we’re reading quarterly reports and paying attention to fundamentals, and then we are covering our shorts based on fear and panic.
Which one is it Fly?
If there’s any insight here, it’s that you’re just as much an emotional trainwreck as the rest of us, whipped about by the whims of the market. The truth, I’m starting to suspect, is that the only thing you’ve had above the rest of us — if the claims of your winnings are to be believed — is ably managed luck.
A very weak argument, indeed. If you are going to step to Fly, bring your A game, fuckface.
I’ve been doing NOTHING, you stupid motherfucker. What is so emotional about that?
The rest is just entertainment.
WTF are you talking about, it clawed back less than 1/2 of its losses on relatively low volume. Are longs scared yet?
The market should have went lower, but it didn’t . I am nearly 50% cash and have said, repeatedly, that I would be doing nothing, especially taking on any shorts.
Get the corn cobs out of your ears son and pay attention.
There was absolutely nothing in today’s mkt action that should prompt one to ask: “scared yet?” On the contrary, this low volume retrace is slightly more ominous that your “should have went lower” today action – – action which I have observed is more often associated with very brief counter-trend pull-backs.
Brosef,
If you’re evaluating today’s action in a vaccum, then yes, you’re right–there’s nothing special.
BUT….
If we were in true bear mode, today would have fed off yesterday’s proceedings. Yesterday itself was low on volume. Today should have been another big down day. Instead, based on ZERO real news, we inched up, erasing half of yesterday’s losses.
BTW, I said nothing about your taking on shorts – take the cobs out of you own ears.
He has yet to place a real trade.
Your mother is a moose.
When did he say he was going short?
You people certainly hear what you want to hear, comprehension be damned.
________
Who you calling people?
Koudoush says what?
regards
chuck
ha!
Fly please ban idiots who cannot read.
August 18, 2009
S.E.C. Floats a Short-Selling Proposal
By FLOYD NORRIS
The Securities and Exchange Commission, after months of considering what to do about short-selling, came up with a new idea on Monday that could make it virtually impossible to place an order to sell stock short and be sure it would be executed quickly.
The commission asked for additional comments on that idea, delaying for at least a month the possibility of commission action.
The proposal would require that short sales be made only at a price higher than the current best price being offered by would-be buyers of the stock. It is similar to the so-called tick-test, which was effective on many stock markets before 2007, but would be more restrictive and could be easier to apply given the current structure of markets. There is now no limit on short-selling, so long as the seller can locate shares to borrow.
Short-sellers trade borrowed shares of a stock, hoping to buy them back later at a lower price and pocket the difference.
The latest proposal is not a completely new idea; the S.E.C. suggested it deep in its earlier proposal, but did not request detailed comment on it. That it is now seeking comment could indicate that at least some members of the commission think the approach could be a good one.
Pressure on the S.E.C. to do something about short-selling grew last year when the stock market nearly collapsed in the wake of the failure of Lehman Brothers. The commission banned short-selling in some financial stocks for a time, and some investors, supported by members of Congress, demanded permanent changes in the rules.
Much of Wall Street has argued that there is no evidence that short-selling caused the plunge last year, and the academic studies available do not support the idea. But the pressure on the commission to do something has been intense. Several stock exchanges suggested a proposal similar to the new one, if the commission felt it had to do something.
The commission asked for comment on whether the latest proposal should become effective for all stocks at all times, or should take effect only after a “circuit breaker” was tripped. Such a circuit breaker could be activated if the stock in question declined by a certain amount — say 10 percent — or for all stocks if a major market average fell by a similarly large percentage. The exchanges said a circuit breaker would be needed.
The old tick-test depended on whether the short sale was executed at a price that was higher than the last different price. Such a rule was relatively easy to impose when virtually all trading in stocks listed on the New York Stock Exchange was done on the exchange.
Now, however, such trades are executed in dozens of locations, and markets can delay reporting trades for up to 90 seconds. As a result, brokerage firms argued, it is virtually impossible to know with certainty what the last trade was, and therefore something based on the old tick-test would be impossible to administer.
The “alternative uptick rule” that the S.E.C. suggested on Monday would be based solely on the current best bid price for a stock — a figure that is kept up to date and is readily accessible. If the best bid for a stock was $20 a share, a short-seller could put in a sell order at $20.01. If someone agreed to buy at that price, the trade could be completed.
But no short sale could be executed immediately, at least until all the buy orders at the best bid price had been filled. The commission said that could “potentially lessen some of the benefits of legitimate short-selling, including market liquidity and pricing efficiency,” and asked for comment on whether that was likely.
The commission asked for comment on whether such a rule would help to prevent “potentially abusive or manipulative short-selling” from driving the market down, and whether adopting such a rule would improve investor confidence.
Even if the commission were to settle on the new approach, it would have to decide what circuit breakers, if any, would be needed. And the commission would have to decide what exemptions, if any, were appropriate.
Much of Wall Street wants to exempt market makers and traders who follow certain market-neutral strategies, warning that without them, those traders would be subject to unnecessary risks of having to maintain positions overnight.
The old tick rule was dropped in 2004, after an experiment in which the commission found that eliminating it for some stocks had no apparent effect on trading. There was virtually no public controversy at the time, but that changed after the 2008 market plunge; the S.E.C. could face a hostile reaction from some members of Congress if it does not act.
For some, the issue of short-selling has been tied up with the issue of “naked short-selling,” a practice that involves selling stocks short without borrowing them. It appears that other S.E.C. rules have virtually eliminated such selling, particularly for stocks listed on Nasdaq or major stock exchanges. But it remains an emotional issue, and some believe naked short-selling is still a major problem.
seriously — tuesday rally didn’t evne close the gap of Monday’s bombed out day on heavy volume.
Fucking retards buying AXL (fair value: negative something…) and RTK (great contract, and they’ll start making money in 2012… but what the fuck — worth a 90% jump) — i mean — this is all that’s left — the casino/penny/gambling crap-o stocks. This is what keeps people coming back and saying shit like “shorts should be scared”
of what? 12% unemployment? $12 national debt? droppping housing/CRE market? consumers retrenching to pay down debt?
I’m not saying go all in short – but raising insane amounts of cash and being about 10% net short seems about right, right now. Oil is over $70 — and a rally in energy — is only going to fuck over American consumers even worse.
The best value play I can find out there today is Humana – HUM — and that was off 50 cents cuz of continued public health care fears. So buy some SDS and HUM and keep lots of cash and daytrade whatever bitchass penny is the flavor of the day — usually there’s at least 3 per day (today HURN AXL RTK) and grab a few K running with the Twits.
The market is very vulnerable to downside now but nobody wants to come out and be truthful about anything.
Hopefully your Killer Kane will include a few tagalong tornadoes with enough moxie to suck about a trillion and a half cubic feet out of storage and put an oilman back in the White House.
The only thing that’s been working for me is quick scalping and going home 100% cash.
Just like GS eh? This is a trading market and not an “inwesting” market.
The Fly is right, stay the fuck out of the way of the supercomputers or you’ll get run over.
I’m scared shitless of the market, and I’m man enough
to admit it. But I’m also man enough to play.
Lots of pissed off shorts trying to bash the Fly today
I too am suprised at the resiliance of this market. I was waiting for a bigger pullback to short another set of puts but I may change that stance.
2008 was the market you couldn’t buy, 2009 is turning into the market you can’t sell
Is “Le Fly” on “vacation”?
http://uk.reuters.com/article/idUKTRE57H1OQ20090818
Jewel thieves make getaway on scooters
“Despite my age, I struggled with one of them,” 75-year-old Elie Chatila, who estimated his loss at several million francs, told the daily Tribune de Geneve. “Look at this, they left a ring worth more than 500,000 francs.”
hurricane watch list….did u spend too much time eating smoked turkey legs and getting scorched in Orlando…thats no investment thesis…fuck just bet on the Mets…loser…
PS3 price cut! http://bacn.me/aqr
w00t for video game publishers!
Fly picked GME to play the PS3 price cut…….not much action off the news…sell the news?
I’m not scared yet.
Not even with Jakey threatening me and my “Jacobin” kindred.
http://ibankcoin.com/jakegint/2009/08/12/beat-that-horsehealth-care-reform/#comment-3610
Hey fly where did Don cramer Harrold go . I bet he wanted money, he blows every penny at the casinos….needs milk money
Ah, so easy to win an argument when you put your opponent on “moderation” for their response.
Day One – http://www.youtube.com/watch?v=l39WL1sOwlA
KOUCHUU,
Not to worry. This guy Fly does not know wether he is coming or going. Never mind trying to figure out how much he really has left in his……… PURSE !!!!!. No, you see really what he should be doing is follow the old chinese philosopher. Yes, when in doubt do like the monkey : Climb up a coconut tree…………. and show your ass !!!!. Finally Kouchuu, we should remind him that the bomb should really explode by the end of Sept. or Oct. in case he is not listening to……………….us.
HAVE A NICE SANDWICH !!
and still your mother is a weasel
The Fly has jumped the shark.
and your mother too
Ride that “long” wave right up onto the coral reef Fonzi. LOL!
Get the corn cobs out of your ears son and pay attention.
ROFLROLFORLFOLRFOL