Looks like the SEC is taking "emergency action" and is placing an outright ban on ALL shorting of nearly 800 stocks! Wow.
From a new article, looks like this is just in place til October 2, 2008:
http://www.marketwatch.com/news/story/sec-bans-short-selling-hundreds/story.aspx?guid={FF3CA343-2485-4B0C-B971-7FBFA0AD4611}

List of stocks here:
http://www.marketwatch.com/News/Story/list-us-companies-whose-shares/story.aspx?guid={2A9A51F5-621E-47F8-81DA-D0E8811E4D12}

I've never seen that done before. Very troubling signal for the economy, and it keeps us from shorting a lot of the most volatile stocks that had been available to us:

http://money.cnn.com/2008/09/19/news...ex.htm?cnn=yes
http://online.wsj.com/article/SB122178234612954617.html
http://www.bloomberg.com/apps/news?p...BEE&refer=home
http://www.reuters.com/article/ousiv...G1567720080919
http://www.marketwatch.com/news/story/us-stock-futures-leap-after/story.aspx?guid={535E75EA-2183-4027-B9E4-C2957114DCAD}


"NEW YORK (CNNMoney.com) -- The U.S. Securities and Exchange Commission took what it called "emergency action" on Friday and temporarily banned investors from short-selling 799 financial companies.

The temporary ban, aimed at helping restore falling stock prices that have shattered confidence in the financial markets, takes effect immediately."


Back in the late 90s/early 2000s when there was a brutal selloff-type day, the closest thing I'd seen was "curbs" that were placed on trading the markets (aimed at limiting what institutions could do re their trades), but nothing this drastic.


-Ken

(p.s. note that since I have to manually approve/moderate all posts before they appear, it may be a few hours before your post shows up here)

Hi Ken ,
Drastic measures / Panic measures ? how will this have flow on effect to Options , Futures , Forex
and other World Markets in the weeks and months ahead ?

Good point -- this is the biggest market-moving news I've ever seen this decade, from a regulatory standpoint (other than the darn 25K pdt rule). This should lead to superb trading volatility this upcoming next few weeks, and particularly going into the end of sept/window dressing into the mix.

Good news, I'm also working on a new http://www.ChartSCANS.com alerts special for traders, so everyone can see what's most volatile, and my entry/exit triggers each morning for these and other strong-moving stocks.
I should have an email out with that (plus posted here) later today, or tomorrow morning, Saturday.

Next week is going to deliver tremendous NASDAQ/NYSE trading opportunities for active day and swing traders. Following stocks like GS MER and others.

To profits,

-Ken





Traders, here's where to register right now:

http://www.ChartScans.com/trychartscans.htm

See you inside the members' area!

- Ken

Wow, where does one start, end or stay on topic. This is like a plate of spaghetti. I do feel it is a good thing what they did. We need to separate out all the bad loans and have all the tax payer pay for it. Really not fair or a good message to send. But the alterative is worse. I hate the idea of paying for someone else's bad loan, that they should have never had, on a house that is now over priced. Really I can't keep my thoughts contained w/o writing a few chapters.

Trading today wasn't as good as I was hoping for. The movement for the most was premarket. The opening was way too fast, price was all over the place. I tested the market w/ 100 shares at the open, marketing in, it took a half a min to fill and 30 cent slippage, the same to get out. (still was green) So I then started limiting in and after a few times of not getting hit. I waited a 1/2 hour for things to slow down and it did, did it ever. Pretty much after that point, I had no idea what was going on and didn't what to be in that grind. I did check back a few times and at the end of the day after reviewing the charts. I saw a few stocks I missed out on but at the time it wasn't clear to me.

This was one of my best (2) weeks yet, most my money has come from shorting Apple. Shorting it every time it came up a 50 m/a on a 15 min 10 day chart and a trendline, you had to be patient and not trade the last 1/2 hour. Using the one min to manage the trade.

I figure this will be a popular post, who doesn't have something to say on this subject.

Short selling?

Equities we know, options are below. But it seems by the language in this "Order" it has left short selling open for ETF's and Futures. Is this right?

It looks like we just took out one part of the supply and demand. What happens Oct. 3 if it isn't extended? (which I believe it will be).

I also believe they should put back the uptick rule, this would stop or at least slow down any runs.


<<<"In addition, we are providing an exception to allow short sales that occur as a
result of automatic exercise or assignment of an equity option held prior to effectiveness
of this Order due to expiration of the option."

This Order shall be effective immediately and shall terminate at 11:59 p.m. EDT
on October 2, 2008, unless further extended by the Commission.
By the Commission.
Florence E. Harmon
Acting Secretary>>>

Now that they have lifted the ban on short selling, we hardly hear anything about it. I think w/ the large influx of money and the large sell off. everyone is thinking it hit it's lows and waiting for the sign of retracement.

Doesn't it tick you off, with the financial mess we were in and the 750 billion dollar bail out. You would think they could pass a bill w/o any pork. (why did rum makers in Puerto Rico get 10 million dollars?) It's sad that they still have to play games,doesn't instill to much confidence in our government.