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think about it. if shorting is permitted again, then all those that have been waiting to short this market are shorting stocks, especially the financials. shorting requires selling shares you don't have, only to buy them back later. can this be why the market is going down today?
however, i am wondering if opening up the market to short sellers, if this is persisting wall streets downside? i am asking it in the form of a question. i want to know others' analysis/opinion on the matter.
The short sellers are picking those companies most likely to go bust..they do some research you know.
Short selling is not something new that just popped up out of nowhere.
Sometimes I wish the MSM would just stick to reporting Britney's daily routine.
The short sellers are picking those companies most likely to go bust..they do some research you know.
Short selling is not something new that just popped up out of nowhere.
Sometimes I wish the MSM would just stick to reporting Britney's daily routine.
i understand this... i am asking that since financials were opened up to short sellers today again, if shorts are driving down the market? you can only sell to start off shorting a stock which logic says will drive the stocks value down. when they cover their shorts, they buy back the shares to drive the stock back up. so my reasoning is that since financials were opened up after a month long close to shorts, this may be why the market is negative? i mean, after all, it opened positive by about 200 points.
I'm not privy to the inner workings of the stock market..but I think it would be pretty tough to say short sellers could sway the entire market..maybe a sector like financials but the entire market ?
No..we've been on a downward spiral here..investor confidence is shot and the fundamentals just are not there to inspire a rally. My opinion here.
I'm not privy to the inner workings of the stock market..but I think it would be pretty tough to say short sellers could sway the entire market..maybe a sector like financials but the entire market ?
No..we've been on a downward spiral here..investor confidence is shot and the fundamentals just are not there to inspire a rally. My opinion here.
it's most likely a combination of the 2. if i bet my life on it, i would say todays downside is 25% because of opening up to shorts and 75% because of more sell off due to lack of investor confidence... then again, i guess the 25% due to shorts would also be a result of lack of investor confidence, so in one sense, you can say it's due to 100% lack of investor confidence, which is what you're saying... so we're both right....hmmmm, if that makes sense
This question may be impossible to answer. I'm not sure if the information that divides short selling from regular selling even exists.
I wonder if the short selling ban actually aggravated the recent selloff.
Consider, when a stock declines dramatically, many shorts will take their profits, and cover their short positions, thereby providing some buying support and slowing the decline. When the ban went into effect, were existing short positions forced to close?
This question may be impossible to answer. I'm not sure if the information that divides short selling from regular selling even exists.
I wonder if the short selling ban actually aggravated the recent selloff.
Consider, when a stock declines dramatically, many shorts will take their profits, and cover their short positions, thereby providing some buying support and slowing the decline. When the ban went into effect, were existing short positions forced to close?
i actually heard the same thing, and in theory, it makes 100% sense. in conventional terms, considering the market is down over 1,200 points in the dow this week, it seems to be the case.
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