on shorting etc and an entry? ....................on shorting ( started and stopped over 6 hours)
first lets isolate the category of naked shorts
This really started with promoters in crap USA listed stocks on the otcbb
and also hurt jr underwriting firms etc
Then it was banned by US and Can exchanges and shifted to interlisted jr stocks
in USA and Berlin
Berlin has no ethics and wouldn't co-operate
Then again I expect much naked shorting developed due to internet trading ( comments? ) and the brokerages were too lazy
or unable to monitor. So you had a free short/shot till settlement time - 3 days?
Now there were some sites discussing 300 or so microcaps that got manipulated by more ( naked) shorts than issued shares.
So you can blame the settlement group in N Y and the lax* US regulators (* hard to believe of course)
Shiny's cause and effect off a bit as when a stock ( bank) is already killed ,the naked shorts jumped on
so that was banned. Then the banks were so low , Gov't thought they should ban normal shorts
However ( per a report on tv ) - the institutions were unable to use shorts as a risk reduction/offset tool,
so they backed away and the banks fell even more . So the rule was canceled ( to stabilize the banks )
OF course the problem was still there so the banks continue to erode
It is all relative. Traders / institutions short say IBM every day but it doesn't drive the stock down
Bad news or lack of buying lets the stocks down
Although relaxing the up tick rule was a factor and another stupid move
( hummm was that by the regulators- more incompetent Americans )
So take out a few hundred isolated stocks, and so then any other shorting is an indication the stock may be overvalued.
Humm are you smart enough to sell the overpriced stock after the shorts give you a message?
Sounds better than any broker who cares less about your account.
Whining by Shiny just shows you can't properly evaluate your portfolio and state of the markets.
( I assume you haven't owned a fraud of which up to 4 to7 % of companies can fall into that category
ie criminal/crooks/addicts percentage) . Not easy for any of us to do
And reason to own 20 stocks.
Interesting I was looking at old tapes of BNNTV / ROBTV from Nov 07!! and we were getting sell signals from tv guests
eg JT of Sprott said he was reducing positions !!) I finally saw a chart breakdown in oils in Aug 08 and dumped.
Still held onto some weak juniors( gold oil) of course. No one can sell everything at the right time
Humm didn't occur to me to blame a shorter!
By all means, Shiny complain about things -like the scum organized gangs and not enough proceeds of crime case actions
And the ridiculous amount of evidence consider necessary
But don't show your lack of experience to the world by complaining about normal shorting (which has its risks)
(Hopefully you don't cry to Mommy when you fall off your tricycle still )
the 1% of unethical shorts isn't worth your( moaning) time.
But then, Chin up I expect you aren't wasting much time over on the OIL thread
And then I don't think Specboy would win any stars at a Social Services job interview
( is it true that they actually offer job in-security ? ;-) )
The really odd thing is the gift the regulators and Horizon gave us to be able to short/hedge( eg HXD HED etc) and in an RRSP!!
And Canadians had 8 to 12 months to learn . I saw them in the first months
How many brokers ( sheep) phoned their customers in the first half of 08 to sell/reduce or use the "Down" 's? LOL
Now everyone complains they are losing on HOU
(which is a spec not a hedge as is HOD)
All that says is : " I can't determine when oil is at a bottom and turning up but I will buy anyway and hope"
or as Gartman says - buy when it stops going down - ie turns up .
Interesting that a poster says HOU was invented for stupid investors to lose on
Well at the same time they invented HOD which smart investors are making money on
Why not comment on that also?
Say GW what games? oil goes down 4% and HOU goes down 8% ( more or less )- each day and resets
oh and HOD goes up 8% Such a hard concept
Say cudos to TTSB
Someone actually talks ( historic) numbers about supply and demand and price for oil
Such a novel concept!
Also in the 90's slump it touched $9 ish
So 9 22ish in 2002 and say 30 ish 2009 low with inflation
I noted one of the mutual fund Manager's Stephanson? on bnn thought it could be 6-10 months before
OPEC really gets it and actual removes the 4 mil bod production
..........................................................................
I've been on the sidelines , waiting on oil , since late Oct .
Getting very close for oil ( a double bottom?) and for HOU
-end of Feb? - seasonal low repeats?
And refiner margins widen with gasoline, March until May/June - consider VLO ( and calls) etc
Here's to good investing.
Regards
U