all short selling stopped by ASIC

looks to have dropped to 4980 and might sit there... lots of flippers wanting to cash in on nearly 500 points rise over the last three days. i don't see it closing above 5000

 

lets hope the volatility which makes front page news settles down.. more people are scared, more they sell out forcing the market lower...

Market still represents great value at present... and its a good time to be building up positions ready for the next bull run..

 

But it's not a level playing field is it. Shorts have a far bigger advantage in a bear market than longs have in a bull market (due to the fear factor)
It's not right that good companies can be put out of business and decent people lose their jobs because a company has been targeted by hedge funds.
We wouldn't accept this kind of victimisation in any other walk of life and shouldn't allow it to happen in the world of investing either.

 

you can still short the market, just buy PUT option or sell a CALL option... but with these you cant affect the market with your trade.

 

Who told you that exactly that those "good companies" are being put out of business because of short sellers? Do you have any evidences to back up your claims? I wouldn't blindly believe what the mainstream media say just like that. They are blaming the short sellers because they are TOLD to do so for the benefits of those very firms that are on the edge of bankruptcy. It's called media manipulation.

The fact remains that firms like Lehman Brothers, Bear Stearns, ABC, AIG, whatever other companies that gone bankrupted was because they were OVER LEVERAGED with too much debt. It's perfectly normal for their share prices to go $0 because their equity simply could not covered their liability. Why blame the short sellers?

In fact, short positions only account for a very insignificant portion of open positions for any particular companies. In fact, the number of short positions held for investment firms like Goldman Sachs has DROPPED since 2008. Of course, the media wouldn't tell you that, they only tell you what they want you to believe in.

Yes, there are certain naked short sellers who are attempting to profit from manipulating the market and spreading rumors, but they only account for a VERY SMALL portion of the legitimate short sellers out there. To ban everything outright to punish a few bag eggs is just way over killed.

Short sell has been in existence for thousand of years, why ban it now??!

This is going to be a sucker rally for the next 30 days, or maybe even shorter.

 

Temjin,

Well said !!

"This is going to be a sucker rally for the next 30 days, or maybe even shorter".

....and current ban may backfire at some stage!!

 

Who in the right mind would SELL you a put option if they can't hold short or sell short of its underlying securities to hedge their position??? Traders do this in order to maintain their neutrality and risk. Options market may cease to exist if short selling is gone.

So it's ok for people to make money from a bullish market, but then they also have the right to complain if they start losing in a bearish market?? Then they start yelling to ban all short selling so they can "potentially" earn free money forever and ever? What kind of free market is this?

Anyone who think totally banning short selling will create a bottom in our market is going to be REALLY SURPRISED!

Take a look at the China, the Composite Shanghai Index. Do you know that short selling has always been BANNED there? Just at how the index has been performing since it crashed from its 6000 high. It's one of the worst performing market right now. I just hope we don't go that way too.

Thanks, and it's 100% guaranteed that it will backfire at some stage. Most mainstream investors just don't understand the full implications of it, and would blindly trust the government and the investment banks who made the same allegations.

 

you can still hedge by trading a different PUT option.. ie different strike, differend date.. etc..

Or you might be happy to buy the stock at the current price, so if you get exercised, you end up with the stock.. less the premium recieved for the PUT.

Why would you sell a put, and open a short CFD position? sounds like a waste of time.. taking a short and long position at the same time is not going to achieve anything.

 

How about the big four Aussie banks for example. Are these not well capitalised with good earnings and a relatively small exposure to subprime mortgages?
These stocks are probably amongst the most widely held by super funds and private investors.
They offer fantastic yields in terms of dividends (fully franked) and yet the share prices were being decimated on a daily basis. So who was doing all the selling? The Super funds? I don't think so.
You say you don't sell short, so why not just enjoy the ride on the way up.
Those of us that are long have had their fair share of pain over the past months and I for one shall enjoy it while it lasts like many others on this forum.

 

Well the short sellers are out of the equation and the market is still expected to drop. There can be no blaming the short sellers now... let's watch as the market unfolds today.

 

down 1.4%.. less volatility now with shorters out of the market..

 

It is good to hear that my super fund can't lend my shares to someone so he/she can short the stock. I really don't understand how they think.