Showing posts with label ban on short selling. Show all posts
Showing posts with label ban on short selling. Show all posts

No More Naked For Good - More Auctions

new homes salesI apologize for the late post tonight, as I have been very busy (and will continue to be busy throughout the week) from other aspects of my business and life. Even with the delay, not too much action was missed. Aside from another extremely low volume, flat trading day that was bolstered up the last seconds of trading and another uneventful Bachelorette finale, there was not much action today.

New homes sales data helped spark a bit of a run for financials, which in turn crushed SRS and FAZ today. Both are continuing to play the role of dogs as of late, which continues to amaze me as there continues to remain nothing but devastation in the commercial real estate market. I don't understand why people are finding it hard to realize that an increase in residential activity is mostly based on seasonal buying, as most families find it very convenient to relocate their family during the summer.

In addition to today's festivities, The SEC made their recent short term ban on naked shorting a permanent thing. Although, just as we saw before, this does not really effect the inverse etfs other than people selling them in fear that indeed it does effect them. They all have existed just fine the past four months while the ban has existed. In addition to that, The SEC will no longer require hedge funds or institutional groups to disclose their short positions. Good thing, because I'm sure many of them are about to load up.

This week will be yet another record setting week for US Treasuries. The Treasury plans to sell a whopping $235 billion in bills, notes and bonds. As a result, we saw prices for Treasuries fall in early trading. Unfortunately, our government is forced to continue to sell debt, as we cannot maintain our current pace of spending. On this track, inflation could kick in much quicker than originally anticipated. This would not weather well for our perceived "recovering" residential market.

Once again, we are seeing the market in flat, low volume trading with everyone being to scared to step foot in it. I am guessing once again it will require a rather strong significant event to push the market much higher or lower from this point. Be assured there are plenty of dollars waiting on the sidelines. As I wait, I will enjoy my 10.5% return from Lending Club. Happy Trading.

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