jswede

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  • Ban on Short Sale Ends - Hold Your Breath
    antix, your answer lies with the "E"
    Oct 09 11:00 am |Rating: 0 0 |Link to Comment |View article
  • Ban on Short Sale Ends - Hold Your Breath
    XLF down 31.7% since day after the short selling ban.

    If one cannot sell short, then the only folks who can make a bet a stock is overvalued are those who are long.. and those people went long because they thought the stock was undervalued.

    So you're waiting for people to change their minds about an asset they are long and have a strong interest in appreciating... and when they do it's ugly - the knife just drops.

    No short sellers are restraining the longs' enthusiasm on the way up, and no short sellers are covering to dampen the drop on the way down... it's a recipe for incredible, and itrrational, directional moves.
    Oct 09 09:07 am |Rating: 0 0 |Link to Comment |View article

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