Should shorting be suspended/banned?

[lesm]

In light of recent comments, can some of the anti shorts answer two questions

Should shorting be banned in the futures markets?

Does shorting cause futures prices to go down?

Please... I am aching to hear answers to these so we can go for the season duck.

Hey Wayne,

Can we add spot fx, as well?

The answers and rationale will be intriguing.

 

[subi1]

In light of recent comments, can some of the anti shorts answer two questions

Should shorting be banned in the futures markets?

Does shorting cause futures prices to go down?

Please... I am aching to hear answers to these so we can go for the season duck.

Wayne

Why don't you save us all the trouble and just let us know what you think.

I thought this thread was on shorting ASX stocks but if you have to enlighten us on the futures market go ahead.

 

[wayneL]

Wayne

Why don't you save us all the trouble and just let us know what you think.

I thought this thread was on shorting ASX stocks but if you have to enlighten us on the futures market go ahead.

I want answers to these fair questions first.

After several days of myself and others asking them, not one supporter of the short ban has been forthcoming to answer.

Something in that maybe?

 

[subi1]

I want answers to these fair questions first.

After several days of myself and others asking them, not one supporter of the short ban has been forthcoming to answer.

Something in that maybe?

Fair enough. I woke up with a headache and couldn't be bothered.

I don't know how the futures market works although from my point of view it does seem a good way for the big boys to control prices.

I will wait for your answer.

I still believe that people shorting who don't own the stock should be banned.
ie naked shorting. I also believe that super funds should be banned from lending out stock to hedge funds and broking firms that support the hedge funds.

Have a good day

 

[lesm]

Wayne

Why don't you save us all the trouble and just let us know what you think.

I thought this thread was on shorting ASX stocks but if you have to enlighten us on the futures market go ahead.

pretty simple question really...

let's say world wide...

The above is the OP's initial post that started this thread. It was never restricted to the ASX. Hence, Wayne's questions are actually in context with the initial post and the question it raised.

 

[Bushman]

I want answers to these fair questions first.

After several days of myself and others asking them, not one supporter of the short ban has been forthcoming to answer.

Something in that maybe?

Wanting to avoid entrapment I would say.

 

[It's Snake Pliskin]

I want answers to these fair questions first.

After several days of myself and others asking them, not one supporter of the short ban has been forthcoming to answer.

Something in that maybe?

When the world was flat story was being bandied about years ago I am sure there were no answers forthcoming by the group who were saying that the world was flat.

It is easy to believe without thought.

 

[subi1]

The above is the OP's initial post that started this thread. It was never restricted to the ASX. Hence, Wayne's questions are actually in context with the initial post and the question it raised.

Fair enough.

Did it say anything about futures or was just because shorting had been banned on the ASX

 

[subi1]

Wanting to avoid entrapment I would say.

It definately had occurred to me. That is why I was asking Wayne to explain

 

[nioka]

Wanting to avoid entrapment I would say.

Or attract the words Moron, Communist, Troll etc.

 

[wayneL]

Wanting to avoid entrapment I would say.

So a ban on shorting futures is untenable?

 

[chops_a_must]

Or attract the words Moron, Communist, Troll etc.

I'll gladly take those troll and communist titles back if you so desire...

 

[nick2fish]

IMO,
Naked short selling should be banned
Covered Shorting should be suspended and was. A correct move and it will be lifted once this once in one hundred year bear market occurrence subsides.

With the US one step away from depression (not recession) the deck was stacked too much in the hands of the hedge funds to print money.

The market has been operating in a normal fashion since the suspension. Once existing shorts were covered resulting in an upward move.
Nobody expected the market to go up in these times but it has been losing ground in a more orderly fashion without the pressure of short-sellers.

See shorters only contribute to a rising market if they get caught out, which is not the name of the game. You borrow, sell , buy back but not at the price you originally borrowed at but lower so when you return your borrowings you have the difference as profit.

How you think that makes for a healthy market state in the worst bear market of the century just boggles the mind.

MQG a perfect example.

One article in the Australian and the stampede was started(How much was the journo paid in the back pocket for that one is anyones guess) Just because you don't own a targeted share doesn't make it okay. Thousands of ordinary Aussies own a bit of MQG through their super and FMG and BHP.


These are dark times that need extreme measures like a 700 billion cheque for instance. To you shorters, take your profits and go to the Bahamas for a month and Relax

The suspension is lifted in the US on Thursday and ASX is bound to follow.
Thank you for your patience and cheers Smithy

 

[Trembling Hand]

The market has been operating in a normal fashion since the suspension. Once existing shorts were covered resulting in an upward move.
Nobody expected the market to go up in these times but it has been losing ground in a more orderly fashion without the pressure of short-sellers.

Normal??

Ordinary??

The stats would suggest it hasn't been like this for some time. And that is AFTER the short ban.

 

[wayneL]

Normal??

Ordinary??

The stats would suggest it hasn't been like for some time. And that is AFTER the short ban.

Well at least something is going up.:::::

(plus the biggest points fall on record AFTER the ban)

 

[nick2fish]

Yes but put that chart against the backdrop of the failed passage of congress bailout which caused the biggest one day drop on Wall Street since the Depression you expect a bit of volatility don't you. Anyway I've expressed my opinion and have not the time nor inclination to go tit for tat.

Cheers and good trading (when you will be allowed to again )

 

[wayneL]

Cheers and good trading (when you will be allowed to again )

ROTFL

The beauty of futures and options, we're still shorting the crap out of this.

...and if you trade US you can still short non-financials to your hearts content.

It's business as usual chum. :band

 

[smithy]

IMO,
Naked short selling should be banned
Covered Shorting should be suspended and was. A correct move and it will be lifted once this once in one hundred year bear market occurrence subsides.

With the US one step away from depression (not recession) the deck was stacked too much in the hands of the hedge funds to print money.

The market has been operating in a normal fashion since the suspension. Once existing shorts were covered resulting in an upward move.
Nobody expected the market to go up in these times but it has been losing ground in a more orderly fashion without the pressure of short-sellers.

See shorters only contribute to a rising market if they get caught out, which is not the name of the game. You borrow, sell , buy back but not at the price you originally borrowed at but lower so when you return your borrowings you have the difference as profit.

How you think that makes for a healthy market state in the worst bear market of the century just boggles the mind.




MQG a perfect example.

One article in the Australian and the stampede was started(How much was the journo paid in the back pocket for that one is anyones guess) Just because you don't own a targeted share doesn't make it okay. Thousands of ordinary Aussies own a bit of MQG through their super and FMG and BHP.


These are dark times that need extreme measures like a 700 billion cheque for instance. To you shorters, take your profits and go to the Bahamas for a month and Relax

The suspension is lifted in the US on Thursday and ASX is bound to follow.
Thank you for your patience and cheers Smithy

Thanx Nick2. Agree & very well elucidated IMHO.
Cheers. Smithy ........
(Message for Trembler & Wayne - Old dogs do learn new tricks plus retain old ones that worked ! The big plus that allows us to flex is that we are not burdoned by massive egos such as yours :0) ............. )

 

[smithy]

Well at least something is going up.:::::

(plus the biggest points fall on record AFTER the ban)

Exposed !!! How embarrassing for all of us.
Please pull your pantoys up now Wayne ........ terurrrrck. It's enough. Your position is indefensible.
As for u Trembling Knees ...... marvy holiday shots from NZ ...... how kind of u to share them with us all. (help is available).

 

[wayneL]

Exposed !!! How embarrassing for all of us.
Please pull your pantoys up now Wayne ........ terurrrrck. It's enough. Your position is indefensible.
As for u Trembling Knees ...... marvy holiday shots from NZ ...... how kind of u to share them with us all. (help is available).

Hi smithy,

Sledging from the Grandstand after being bowled out for a duck, eh?

Well it's all business as usual for me, criticism from losers is par for the course really.

Happy trading to you.