Thread: What do you think the market will do when the short selling ban ends?

You take your chances....

There are too many variables to deal with right now. If they do the bailout at the same time they release the leash on the shorts, then it may have no effect at all.

IMHO now is not the time to be a hero and there isn't anything wrong with sitting on the sidelines and waiting for confirmation of a direction.

When the ban is lifted, short, short, short. Ain't nothing going to make this situation go away. Just small degrees of damage control.

Knowing what I know if I were short this market would put the fear of Allah in me. The caps will be extended and the nakeds better produce shares or they are toast.

Originally Posted by bombman32

I was thinking it may spark a big sell off and was contemplating a strategy of getting all in on the G-fund around 30 September if it looks like the ban will be lifted in anticipation of a sell off? This would get me out of the market in a timely manner and preserve my two IFT's for October. What are your thoughts?

bombman,
Another perspective is that once the ban is lifted that no problems arise! IMO, problems haven't ever been the result of the naked shorts, and there's never been anything to it in the first place - it may show its actually been a healthy part of a free-market!

I see nothing wrong with shorting if you keep your clothes on. If you are not willing to put up with some risk, you shouldn't get to play.

Hard to say:

I remember some maneuvers mentioned on CNBC that are almost the same thing as shorting, that still could be done, so it may be doing nothing now, other than making it somewhat less convenient than the ETF short funds.

I see far too much resistance to a bailout, from both party representatives, especially republicans, and widespread public dissent on both sides.

The other problem is that a bailout, even if it came, solves nothing. It would be a great selling opportunity. Expect the S&P to top 1,250 if that (i.e., the bailout) happens in next few biz days, then crater below 1,000 after the next few months of negative job growth and lame holiday sales.

I'll be in G and F fund. Lots of luck.

Naked Short Selling should be stopped. It's like pouring Gas on a fire if a company hits hard times, with no risk to the Crook (trader). Do away with that one and we should be better!!falling_money.gif

I think this is a smoke screen being barked loudly by the dogs who are really stealing your money. They never expose their methods, and would never expose someone else's successful methods, because they would first understand them and then employ them. That's the way it is on the street.

People who sell short make some money on some trades and lose money on others, just like everyone else. However, they have unlimited risk, unlike others.

This is just my opinion, and I would never be all that concerned about that which is public knowledge.

BTW, I am fully 100% long for the first time in I simply cannot remember. Looking for an I/T bullish advance.

USGGE

Thanks to all those who replied, I just kind of wanted to get a sense of what other folks out there were thinking and open a line of discussion on this topic. This market is so hard to read these days, (not that it was all that easy before), and so many of the moves up and down have been counter intuitive and extreme in regards to historical moves. I think it says something about the times when a 200 point or more move in the market no longer seems to be such a big deal!

Aside from the bailout, the short ban is/was looking like it could be the catalyst for some potential big moves at the end of this month or as Hessian and others said, no moves at all. Lately it seems the more I read and research the more confusing and uncertain it becomes Nature of the beast I suppose.

Anyway this coming week will answer a lot of the short term questions as it appears there is a deal on the bailout and if nothing else it will probably continue to be "interesting". I probably should have retreated to the G/F earlier this month but with any luck we'll get a nice bounce and a opportunity to lock in some gains as the roller coaster continues.

Good luck to all -

I find it interesting that even with the shorting ban we are still seeing big sell offs on some financials.