# Ban of short selling of financials lifted



## Average Joe (25 May 2009)

http://www.asic.gov.au
"Key details

Covered short sales of financial securities will be permitted from opening of trade from 10am on 25 May 2009. 
The daily reporting of gross short sales will continue as will the publication to the market of aggregate short sales the day after trading."


Some downside momentum expected?


----------



## skyQuake (25 May 2009)

Upside?


----------



## Timmy (25 May 2009)

Average Joe said:


> http://www.asic.gov.au/ASIC/
> 
> Some downside momentum expected?




Link doesn't work


----------



## Real1ty (25 May 2009)

Timmy said:


> Link doesn't work




http://www.asic.gov.au/ASIC/asic.ns... selling of financial securities?opendocument



> 09-94 ASIC lifts ban on covered short selling of financial securities
> 
> Monday 25 May 2009
> 
> ...


----------



## Timmy (25 May 2009)

Real1ty said:


> http://www.asic.gov.au/ASIC/asic.ns... selling of financial securities?opendocument




Thanks Real1ty


----------



## MRC & Co (25 May 2009)

Looks like a few shorts going onto the banks today, probably long on commodities also.

Wonder though if after a few days of shorts going on, if we will get a short squeeze so some of the bigger guys can get better fills?  

Should be good to watch and I hope so, so I can get some on myself at a bit higher prices.


----------



## investorpaul (25 May 2009)

MRC & Co said:


> Looks like a few shorts going onto the banks today, probably long on commodities also.
> 
> Wonder though if after a few days of shorts going on, if we will get a short squeeze so some of the bigger guys can get better fills?
> 
> Should be good to watch and I hope so, so I can get some on myself at a bit higher prices.




I have shorted WBC today and have an order in to short sell ANZ if it goes below $15.


----------



## skc (25 May 2009)

I suppose the A REIT sector is also shortable. Now who hasn't done their n'th round of capital raising?

MGR?
WDC?


----------



## white_goodman (25 May 2009)

investorpaul said:


> I have shorted WBC today and have an order in to short sell ANZ if it goes below $15.




$15 i agree is key level. long if it resists however....


----------



## MichaelD (25 May 2009)

Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.


----------



## MRC & Co (25 May 2009)

MichaelD said:


> Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.




On what basis do you make that hypothesis?


----------



## skyQuake (25 May 2009)

Agree, remember what happened last time? Mother of all rallies out of nowhere.


----------



## beerwm (25 May 2009)

ahh, so the ban has been lifted.

does this mean we're in a bull market now


----------



## Garpal Gumnut (25 May 2009)

beerwm said:


> ahh, so the ban has been lifted.
> 
> does this mean we're in a bull market now




Unfortunately not if you hold financials. MQG has lost significantly today and if I were trading at present I'd be inclined to short it. 

It is an extremely volatile time for financial stocks.

It would be good to see them consolidate and move sideways for a few months, but i do not think this will happen.

gg


----------



## sleepy (25 May 2009)

Does anyone have the list of all the financial stocks that were banned ... or can provide a link .... as I'm after all the symbols it applied to. 

sleepy


----------



## Garpal Gumnut (25 May 2009)

sleepy said:


> Does anyone have the list of all the financial stocks that were banned ... or can provide a link .... as I'm after all the symbols it applied to.
> 
> sleepy




Its all the banks and some others, insurnace etc. 

It should be on the asx site.

Google "ban short selling financials asx" on google.com.au and you should get the result.

gg


----------



## sleepy (25 May 2009)

I couldnt find the the list via google or ASX after 40+ mins of searching ... thats why I was asking here.

sleepy 

... until now that is ..  thanks!


----------



## MichaelD (26 May 2009)

MRC & Co said:


> On what basis do you make that hypothesis?




On the basis that I feel contrarian today and my elbow is itchy and the wind changed direction.


----------



## Aussiejeff (26 May 2009)

Of course, ASIC have stated they WILL re-instate an instant ban at anytime they feel market activity *justifies* such action. Ahhh, the Sword of Damocles rule, eh?



Caveat venditor...


----------



## nomore4s (26 May 2009)

MichaelD said:


> Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.






skyQuake said:


> Agree, remember what happened last time? Mother of all rallies out of nowhere.




lol, I can't help thinking the smart money will let the retail investors load up on shorts and then short squeeze them for a profitable covering rally.


----------



## Boggo (26 May 2009)

Don't forget that the US and UK markets are only re-opening tonight, they may be interested in a few shorts in Aussie I reckon.


----------



## skyQuake (26 May 2009)

Either way, hope we'll see some trending in the SPI tomorrow and some volume!


----------



## skyQuake (26 May 2009)

Beautiful smooth rally today 
Gotta thank the retail shorts for their kind consideration.


----------



## Sunder (26 May 2009)

skyQuake said:


> Beautiful smooth rally today
> Gotta thank a the retail shorts for their kind consideration.




Think it will continue? 

I'm afraid it will, but seeing slight evidence that it wont: SPI futures retreated 24 points between 4pm and 4:30pm on the June contract. 

US futures are almost flat (-0.13%), so we might not even get a lead from them tonight either way.


----------



## saiter (26 May 2009)

skyQuake said:


> Beautiful smooth rally today
> Gotta thank the retail shorts for their kind consideration.




How would shorting translate into a rally? 

I would have thought that the market would fall because everyone would be selling? Unless someone else is buying more than what is being sold... (if that is even possible)


----------



## skyQuake (26 May 2009)

Sunder said:


> Think it will continue?
> 
> I'm afraid it will, but seeing slight evidence that it wont: SPI futures retreated 24 points between 4pm and 4:30pm on the June contract.
> 
> US futures are almost flat (-0.13%), so we might not even get a lead from them tonight either way.





Not sure... But ideally the US tanks tonight, which means tomorrow all the shorts that got squeezed out today will come back in with a vengeance (and all those that held are super confident that it'll keep dropping).
Then we can have more fun fun squeezes.



saiter said:


> How would shorting translate into a rally?
> 
> I would have thought that the market would fall because everyone would be selling? Unless someone else is buying more than what is being sold... (if that is even possible)




Monday's lift of shorting ban saw all the retail trades come out of the woodwork. Without a US lead overnight, I suppose it must have been fairly easy for the big boys to buy it up today and squeeze the stuffing out of the bears.


----------



## nunthewiser (26 May 2009)

saiter said:


> How would shorting translate into a rally?
> 
> I would have thought that the market would fall because everyone would be selling? Unless someone else is buying more than what is being sold... (if that is even possible)





to exit there trade ie "cover" , they have to buy into the stock they have sold ie "shorted".. forcing prices north


----------



## Sunder (27 May 2009)

skyQuake said:


> Not sure... But ideally the US tanks tonight, which means tomorrow all the shorts that got squeezed out today will come back in with a vengeance (and all those that held are super confident that it'll keep dropping).
> Then we can have more fun fun squeezes.




Is it just me, or does it look like this morning was to squeeze out shorts, then allow the market to settle?

Despite US confidence last night, that did seem like an overly optimistic rally this morning.


----------



## skyQuake (27 May 2009)

Sunder said:


> Is it just me, or does it look like this morning was to squeeze out shorts, then allow the market to settle?
> 
> Despite US confidence last night, that did seem like an overly optimistic rally this morning.




Lol I was wrong about how speculative the short crowd were... Jumping in rain hail or shine.


----------

