Monday, April 26, 2010

Treasury Dumping C Shares

We knew it was coming.  The Treasury is dumping up to 7.6 billion shares of C through Morgan Stanley.  This adds up to over $35 billion in C shares being dumped on the market if the whole lot is sold.  That is a massive sell order and presents a significant headwind for the market in the coming weeks.  Add to that the other IPOs and secondaries that are popping up left and right and you have a supply shock coming.  I would expect there to be a correction in the face of all this supply.  As for today, its Mutual Fund Monday, of course we are going higher.  I am watching and waiting for higher prices to short.

3 comments:

Anonymous said...

What is the timeline to finish the sale?

Anonymous said...

Hey man, market is about to pop.

Market Owl said...

The filing said they would be selling from time to time.