Monday, September 22, 2008

Short sellers next target

So.....short selling of financial stocks is prohibited.  They screwed up and took the whole market down, and they are protected now....it is like financial welfare.  The recent bounce is artificial.  

Shorts are smarter than longs.....they will let us know that that will not prevent them from taking down the market....



Now this is what I anticipate how shorts will try to kill this market.
  • take the oil price back up (because Paulson's plan will weaken the US$) in order to revive inflation concerns.
  • short tech stocks (Morgan Stanley downgraded tech/hard ware sector).
  • take down retail sectors - higher oil price will negatively impact retailers.
  • QQQQ will be used to take down the market.  
Bottom line, shorts are pissed off because they are looked as financial terrorist....they will come up with new strategies sooner or later.  

I still think that SEC's decision to ban short selling of financials was not a smart move.  Don't they know that shorts would short sell whatever they can?  All they had to do was to reinstate the uptick rule.






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