tag:blogger.com,1999:blog-2676650858658561710.post3209940779574279300..comments2023-11-02T06:14:07.871-04:00Comments on Quantifiable Edges: Gaps Stats And How The Lack Of Shorts Could Influence ActionRob Hannahttp://www.blogger.com/profile/07596674657839065754noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2676650858658561710.post-36724026527726391682008-09-24T15:08:00.000-04:002008-09-24T15:08:00.000-04:00Shorting was banned in 1930....guess that didn't h...Shorting was banned in 1930....guess that didn't help.Timhttps://www.blogger.com/profile/09080958568425654987noreply@blogger.comtag:blogger.com,1999:blog-2676650858658561710.post-41306066853726032112008-09-24T14:41:00.000-04:002008-09-24T14:41:00.000-04:00You would think that a decrease in short sales (as...You would think that a decrease in short sales (as mandated) would create a corresponding decrease in volatility. Yet that is not happening. I'm not sure why. Hmmm.<BR/><BR/>Cheers,<BR/>MarcMarchttps://www.blogger.com/profile/13935848992860543227noreply@blogger.comtag:blogger.com,1999:blog-2676650858658561710.post-26269914172791048082008-09-24T12:44:00.000-04:002008-09-24T12:44:00.000-04:00It was Pakistan, I believe, which banned short sel...It was Pakistan, I believe, which banned short selling. Then they put daily loss limits of 1% in place. When neither of those things worked they banned any kind of selling. I am not sure how they have done since then or if they have lifted the rules at all, but hey Pakistan is a great lead to follow. I hear they are as stable as it gets over there!<BR/><BR/>Cox is a joke and deserves to be fired.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2676650858658561710.post-81193525281798851992008-09-24T12:32:00.000-04:002008-09-24T12:32:00.000-04:00Besides prudence and risk management concerns anot...Besides prudence and risk management concerns another volume factor is that nobody with a sweep that uses ANY of the Reserve funds can get their money to trade.<BR/><BR/>Every short is an eventual buyer so banning shorting obviously eliminates a large pool of buyers - who typically would buy when it's close to the worst - and that's gonna leave a mark. All gov't intervention in markets makes things worse so no surprise things will be even uglier down the road.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2676650858658561710.post-60143191017572863572008-09-24T09:33:00.000-04:002008-09-24T09:33:00.000-04:00The low volume is also from people like me that wo...The low volume is also from people like me that won't trade while the market is broken. I'm not sure I want to trade with a clown like Cox in charge of the SEC even after the ban is lifted. It's become really obvious now that he doesn't understand market structure at all, since they keep saying that they hadn't anticipated the effect that banning shorts would have on market makers. I wonder how many prop trading firms decided to take a two week vacation instead of dealing with a market that has no historical comparisons to backtest against.<BR/><BR/>jkwAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2676650858658561710.post-17959933558144304172008-09-24T09:02:00.000-04:002008-09-24T09:02:00.000-04:00Agree with you on the effects of the no shorting r...Agree with you on the effects of the no shorting rule. I dont remember where, but I read that an exchange in one of the middle eastern states banned short selling, and the market actually moved lower for the next few weeks. Which was contrary to what the guv wanted to happen. Dont know what they could do to stop the beating for specific comp.. maybe put price move limits on those companies like in futures? Just a thought.Anonymousnoreply@blogger.com