I usually don’t agree with Cramer. Usually believe you do the opposite. This time I think he has good advice since the market is over-inflated with the ban on short selling. The important take-away from today is not Treasury Secretary Henry Paulson or Securities and Exchange Commission Chairman Christopher Cox" but that rallies are for selling, Jim Cramer told viewers. Cramer said the astonishing 779-point rally over the past two days can only mean one thing: sell. He advised viewers to spend this weekend evaluating their portfolios so that they are ready to sell their bad stocks on Monday and take profits in the winners. Cramer returned to a selling strategy he’s used many times. He said to rank every stock in a portfolio from one to four. 1. The stocks you’d buy right now. 2. Those you’d buy on a pull-back. 3. Those you’d sell into strength. 4. The losers you need to sell right away. After ranking all the stocks in your portfolio, Cramer advised selling 20% of your portfolio on Monday. He said that there should not be many stocks still ranked “one,” after the huge rally the past two days.
very naive question, but did shorts have to buy, or was it just no new shorts? also, if no shorts at all, how much time did shorts realistically have? lastly, i would have thought bailout was greater impetus
The shorts did not have to cover…I think the rally was mostly due to panicky retail shorts covering who got in later in the game. Once the ban expires on Oct 2nd, the market will tank again as the hedge funds will resume hammering the stocks. This bailout bandaid cannot prevent the upcoming collapse.
louisvillegrad Wrote: ------------------------------------------------------- > The shorts did not have to cover…I think the > rally was mostly due to panicky retail shorts > covering who got in later in the game. Once the > ban expires on Oct 2nd, the market will tank again > as the hedge funds will resume hammering the > stocks. > > This bailout bandaid cannot prevent the upcoming > collapse. thanks, much appreciated… i wonder about this government rescue too.
The next two weeks will also screw over the hedge funds who have shorting as part of their methodology. October 2nd should be an interesting day.
actualli i thought the shorts did have to cover by the weeks end…can anyone verify or disprove this? Cuz if they did have to cover that is a major reason for that rally, if not then nevermind.
if you are short before friday you dont have to cover. you are not allowed to short more