shorting

[niketennis1]

So when is this ban on shorting over exactly? And if its over, anyone short stocks now bc it really looks like easy money shorting financials (GS, C). Obviously you have to be careful doing this though because the market should become undervalued sooner or later (hopefully haha) I'm very angry I never shorted F bc I was thinking about shorting it around $5-6 and now its at 2.

[Bolimomo]

The ban expired last night. So today is the first day that people can start shorting financial stocks again.

That is if your brokerage firm has shares for you to borrow. These financial stocks are so heavily shorted and with SEC tightening on the shares delivering rule, some brokerage firms just flat don't have shares for you to borrow. You can't borrow it, you cannot short it (or else that would be "naked shorting", which is what SEC is trying to crack down on too.)

Also, for a stock to be shortable, it must be marginable. Any stock that is below $5 is unlikely to find a brokerage firm that would let you borrow money (on margin) using that stock as collateral. So when a stock declines to below $5, you can forget about shorting on it.

You also must have a margin account to be able to short stock too. Cash accounts (and IRA)... can't do it.

[niketennis1]

I would be shorting but I got out of the market a few months ago. IMO a few good shorts right now are SBUX, GS, C, (all financials) ANF (will go down in the short-term), and almost any stock due to the mess. Obviously though, if your shorting any stock, you should be watching the market atleast 10 times a day to see no real confidence in prices.

[Bolimomo]

I would be shorting but I got out of the market a few months ago. IMO a few good shorts right now are SBUX, GS, C, (all financials)


????? SBUX???? When did Starbucks start taking deposits and lending people money?

[aiki14]

????? SBUX???? When did Starbucks start taking deposits and lending people money?

I think he meant all financials in addition to the others, not that SBUX was a financial. At least I hope that's what he meant.

[GDFLS]

I think he meant all financials in addition to the others, not that SBUX was a financial. At least I hope that's what he meant.

I think that is what he ment as well, LOL, but I have to say Boli's post at least got me to laugh during a really ugly day!

[Bolimomo]

I think that is what he ment as well, LOL, but I have to say Boli's post at least got me to laugh during a really ugly day!
Glad that I can inject some humor into these serious discussions. Sorry to hear this is an "ugly" day. I thrive in this environment day-trading. Plenty of volatility and sharp reversals. Today is my third best day for the year. Yesterday was second. And on 9/18/08 it was the best - the day that AAPL's prices on the tape were jumping up and down by $1.00 every 2 seconds.

It's too late to sell, too early to buy, perfect to trade.

[GDFLS]

Glad that I can inject some humor into these serious discussions. Sorry to hear this is an "ugly" day. I thrive in this environment day-trading. Plenty of volatility and sharp reversals. Today is my third best day for the year. Yesterday was second. And on 9/18/08 it was the best - the day that AAPL's prices on the tape were jumping up and down by $1.00 every 2 seconds.

It's too late to sell, too early to buy, perfect to trade.

I am happy to hear this Boli! Yeah I have been saying this volitility is great for traders. However, I am small potatos, hash browns actually, LOL. I mostly follow the market and research stocks as a hobby, I don't have the cash needed to trade.

I have come to the realization that I fund my IRA and once I have enough dry powder, I look for good bargins for the long haul.

I wish you continued success!

[niketennis1]

yea haha I know SBUX isn't a financial. I just think its a good short bc people will probably start to tighten up with money and stop spending on unneccesary items.