The VIX topped out at 42.16, a level not visited since 2002, before reversing and closing at 33.10. That looks like a top with a reversal stick.
The S&P and COMPQ both capitulated on huge volume spikes. This is the highest ever volume for the NASDAQ(3.95 vs. 2.2 avg.), not sure about the S&P. Markets started to reverse from another morning of selling after the FSA (U.K.'s SEC) announced a ban on short selling of U.K. bank stocks. Another spike occurred in the last hour on news that the U.S. treasury was looking into an RTC type solution - this is the week for financial fixes. New lows outpaced new highs 4:1 on the NASDAQ and a whopping 14:1 on the NYSE (those NYSE numbers feel like washout levels). Solid broad based gains with little in the red except gold/silver.I'm now reading that the SEC is temporarily banning short selling in the U.S. - This news, if it's real, will be devastating for day traders. Hope it's just for financials ( I can live with that) like in the U.K. and hope that temporary is like a few weeks, not months like the U.K.
Update on SEC's propsed ban of short selling - Sources close to the SEC now say they are considering banning short selling of U.S brokers.
S&P E-mini futures are way up after hours. Tomorrow is OPEX - no economic data.
5 comments:
Talk about market manipulation... the short banning is crap! (IMHO)
Hey Jim,
I hope you're right, if by crap, you mean, not true. If, by crap, you mean that banning short selling is a shitty idea, I agree. The SEC has been out to lunch ever since Cox took over, and it's too late to help LEH and AIG and countless others, so what's the point?
Clarification:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayOOCoviquSE&refer=home
A total ban would seriously cut into my profits. I don't think it would ever happen, and if it does I am moving.
:)
799 companies banned...I may be moving.
:(
X, that figure is stunning.
The Bush presidency and its appointees have, for the most part been hopelessly unqualified. This is the cherry on the cake - the government stepping in to control stock prices.
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