TIGERSOFT william

Short Sales: SEC Turns Back the Clock to 1931

THE SEC CLEARLY AIDED THE 2007-2008 "BEAR RAID"

With the financial stocks up sharply for a fourth day in a row since the SEC banned naked short sales in leading financial stocks, one has to wonder how much of the size of the decline owed to hedge fund naked shorting of these stocks and why, if the SEC is at all concerned about excessive market volatility owing to bear raids, it does not ban naked short sales in all securities and enforce this
rule with real  penalties.  The answer is, of course,  the SEC is the client of Wall Street insiders, not the investing public.  I might not have said that, but for way at the end of June 2007 the SEC cleared the way for a bear market by suddenly, capriciously, illegally allowing short sales on down-ticks.  The SEC has not
begun a single action against anyone for driving a stock down by naked short-selling. We should watch the SEC.  They want financials to rally now.  There are two earlier cases, in 1931 and 1932, where the NYSE briefly banned short sales. The market rallied then, too, until the ban was lifted.
See seekingalpha.com/artic...

I have to mention the SEC's hypocrisy and Chairman Cox's misleading statements on CNBC, where he denied naked short selling was illegal.  Cramer hit COX pretty hard.  Wall Street is not a level playing field.  And the SEC is not even pretending now.   That suggests that they are rather desperately trying to bring a
recovery. This is as rank as Bush's connections to Enron's Ken Lay.
He denied being friends with this convicted swindler. But the truth was Lay provided Bush with more than a million dollars. Bush would likely not have become President without Lay's lavish support.
                      ... They are supposed to police insider trading.   Who police's the SEC?   It is clear from 
                      ... the high volume of trading in  finance stocks before the announcement, that they let
                      ... favored insiders know in advance. 
                      ... ( See - www.tigersoftware.com/...   )
  

                      ... Given their heavy weighting in the DJI - BAC, C and JPM, I would think
                      ... the DJI will move higher and reach the point of breakdown, 11700.  A 50%
                      ... retracement would take the DJI up to 12000.   It is back to its declining
                      ... 21-day ma. and the resistance of the hypothetical low of January.  The market
                      ... was very oversold.  A two week rally off a July low is typical even in a bear market.
                      ... That the DJI is moving up appreciably more than the  SP-500 or NASDAQ
                      ... makes the rally suspect. 
                      ...
                      ... V-Bottoms Are Not Common

                      ... Despite the 450 point rally, we have no major Peerless Buy.  So, the odds favor the
                      ... rally being short-lived and a re-test of 11,000,  unless you are accept the Bear Raid
                      ... hypothesis offered above, which then would suggest that the DJI has along way to
                      ... rally, now that insiders have accumulated so much stock at the bottom.   Looking
                      ... back to 1965, there are few "V" bottoms  and still fewer boittoma without major
                      ... Peerless Buys.  Three quarters  of the time, bottoms require at least another test.