The best time to sell stocks (short or otherwise) in the last month was Friday morning after the ban, nice setup SEC. Furthermore, markets have given back all their gains since. Its sure reassuring that those sales weren't due to short speculation and that we don't have to worry about covering (bear market rallies).
" Imposing new regulations at this time is kicking the market while its down." Head of CME education department
"To think, I mocked Russia for being a nation run by market commies"-Barry Ritholtz
"Its like fondling some girl in a public place, its just wrong. You can't do that." -btb
In my view, the only thing they got right with this ban was the timing. As you can see in the chart up top, the market had bottomed and begun to rally before news of the US ban broke. Sure the news was probably leaked which help spark the rally, but we certainly had good technical support for a major bottom. The ban served to pop prices way too fast to be sustained which led to this relatively orderly selloff ever since (albeit a 500 point decline in the dow). This pullback gives buyers who missed the low last Thursday a chance to get in and potential for support just below here. I'm still expecting a big rally from here but new lows for the year will convince me otherwise.
In other news, Wall Street turns to religion.
No comments:
Post a Comment