Thursday, September 18, 2008

What a Wild Market Day: Shorts Days are Numbered

It seems the double barrel of government intervention Resolution Trust Corp style and lots of pension funds stopping their stock loans to short sellers has made the market whipsaw.

The buying was evident across all industries, but led by the financial stocks, helped by more tough talk about short-sellers, both from across the pond (where the U.K. outlawed short-selling of bank shares) and here (where New York Attorney General Andrew Cuomo announced an investigation). “At one point the market begins to realize that the end of the financial system is not at hand,”

I would hate to be short this market now since it is like a bucking bronco. One day it is way down and the next day it pops right up.

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