Securities and Exchange Commission Chairman Christopher Cox said Tuesday to Congress that the SEC will broaden existing rules prohibiting naked short selling of banks and broker dealers in a bid to protect Fannie Mae and Freddie Mac.
Short-selling is a type of speculation, where a trader sells securities he doesn't own; essentially, it's a bet that a stock will fall. Naked short-selling is when a trader makes such a bet without arranging to borrow the stock first. The SEC already has rules limiting naked short-selling in certain circumstances.
Really makes me laugh at all the blather re the short sale rule, o rule, protect the selected "choosen" banks..."
Seems no one gets it - the market is, has been and always will be RIGGED by two giants with virtually unlimited capital - the broker dealers and their "offspring", the hedge funds and investment banks.
With virtually unlimited cash each day, these players can target a stock, a sector, and etf, a commodity, or an asset class and move it up or down to ensure their profits and your losses.
Does anyone really think that a market maker advertise real bid and asks? Spoofing has been around forever.
I've been trading index futures for years, and it's one of the best rigged games around. Like on the recent "JP Morgan upside surprise" day. All it took was pulling the bids from the index futures to create a massive short squeeze and voila - theres goes a 250 point Dow rally.
IMO, none of this will ever change unless we get to true electronic trading with enforceable restrictions on broker dealers and market makers -and that aint ever gonna happen.
Sorry, but all this whining is irrational. Just get on the same side of the flow as the big boys and catch the wave.
Call it what you want, but it's a rig.
Good Evening every Body !
I real worry how we can going on paying the bill of the crude oil ... each country of our planet go strong in a collaps of theirs economies !
Soon up comming:
1st ...A war against Arab countries with the aim to control theirs sourcies of petrolium ...
2nd ... value of the US$ divided by 100 (actually America's debts are billions of billions, and every day one can add billions ...) ... the result will be: total collaps of the bankingsystem/FED. Creation of a NEW dollar ...!
I mean: we will die because we must pay all our imports from China, India, Russia, Canada and
all Petrolium pumping countries.
With which monay shell WE pay OUR own needs ?
Cheers ! Paul
I don't get it. Back in 2001-2003 we had the uptick rule and I remember the market opening down 200 pts. After that it would fall a further 200 pts. Anyone remember when Enron went bust?
Dear Adam:
Why not rating Commodity Markets the same way you rate stocks form -100 to +100 on daily bases?. This extra service for your subscribers that like commodities and stocks will add a tremendous value to current and potential subxcribers of Market Club.
Regards,
Gustavo
07/15/2008
Gustavo,
We rate every commodity traded in North America. Just click on the red chart button to get a chart analysis of any of the 250,000 symbols that MarketClub covers.
Thanks,
Adam
Adam,
Congratulation on your work re: 10a-1. Your up tick video should be viewed on CNBC and Bloomberg News. I have been fighting for enforcement of the rule since last year, and it seems some headway will soon be made in the financial sector. Your video tells investors that 10a-1 is more than a market mechanism. In addition to its role as a regulatory safety net, the rule is a statement of market ethics. It tells the world we respect fair play, that we value and respect the contributions made by investors to our system of commerce. Non-enforcement of 10a-1 has acted as an open invitation to predators; it has ushered in the kind of economic anarchy that is destroying confidence in U.S.markets and ruining lives. Please continue your invaluable work in pushing for enforcement of the up tick rule. We are with you!
The reason ? Certainly big speculation !
But why only banks and brokers, and not Hedge funds and other big funds ?
Besides that should be done also for other equities !
Best Regards
SPLATTER!!! That's the sound of CRUDE OIL positions being dumped today by financial firms in order to raise cash (and that money won't be coming back into oil anytime soon).
A 'run' on the sale of oil has started, as firms see the window to cash in their YTD winnings and prepare to reallocate against attractive buying opportunities elsewhere...
CNBC July 15:
"Since investment banks have been increasing their ... exposure to commodities, their current distress can have [a] significant impact on oil prices if they are forced to liquidate commodity positions in a run for cash," Olivier Jakob, an analyst at Petromatrix in Switzerland, said in a research note.
The latest monthly market report from the Organization of Petroleum Exporting Countries gave traders further reason to unload oil.
The cartel predicted world oil demand will rise by 900,000 barrels a day in 2009, or 100,000 barrels per day less than this year. OPEC blamed the slowdown on a slumping economy and high pump prices in richer industrialized countries.
Cheers!