SHORT AND DISTORT
July 31st 2008 00:00
Now, there’s a phrase that I want my fellow stock market newbies to be familiar with. “Short and Distort.” It pertains to a game plan that some market players are resorting to in order to stay on top of the game. Unfortunately, despite all the pretensions, it is not a very friendly game.
Why spoil the game? Well, it wasn’t me. I am just emphasizing it here… Okay, okay, I wish it was me, but it wasn’t me. So the least that I can do is point it out to everybody who should see it.
US SEC Chairman Christopher Cox was quoted yesterday as saying that they extended the prohibition on Naked Selling of 19 financial institutions, which include Fannie Mae and Freddie Mac, to mid August to prevent the execution that kind of strategy.
Here’s a link to that story: Really Long Link
Obviously, the move was to put a stop to further deterioration of market sentiments – given the current world economic condition.
But that was the SEC’s objective, mine is just to make it clear to new (or, would be) stock market investors that there are market players who thrive on others’ gullibility. Those market players has a bagful of tricks (maybe even truckloads of tricks) that they can unleash to give the impression that the market is going one way when it is actually going the other way.
Sometimes, it is not enough that you know how to read the charts or that you know the fundamentals or that you are good in both in order to win. In fact, many times, you have to know how the game is played in order to survive.
Why spoil the game? Well, it wasn’t me. I am just emphasizing it here… Okay, okay, I wish it was me, but it wasn’t me. So the least that I can do is point it out to everybody who should see it.
US SEC Chairman Christopher Cox was quoted yesterday as saying that they extended the prohibition on Naked Selling of 19 financial institutions, which include Fannie Mae and Freddie Mac, to mid August to prevent the execution that kind of strategy.
Here’s a link to that story: Really Long Link
Obviously, the move was to put a stop to further deterioration of market sentiments – given the current world economic condition.
But that was the SEC’s objective, mine is just to make it clear to new (or, would be) stock market investors that there are market players who thrive on others’ gullibility. Those market players has a bagful of tricks (maybe even truckloads of tricks) that they can unleash to give the impression that the market is going one way when it is actually going the other way.
Hey pal, why bother with that little fry in that silly little corner of yours? This is a big ocean you know, you'll have better chow if you come with me!
Err...ah, don't mind that hand holding a camera phone to the left of the frame. It's not really there and we are not really in an aquarium, this is a big ocean, you know...
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