Tuesday, May 18, 2010
Germany Bans Short Selling
This is big news. I think it is an admission that they need to manipulate the market to maintain low credit spreads for the PIIGS, as well as trying to protect their banks. I think this only puts pressure on the related instruments that will be shortable, such as DAX futures. I think Europe will view this negatively when their markets open tomorrow, the opposite of what these regulators intended. The euro is already selling off.
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2 comments:
There is interpreting the economic effect of all the news like an economist and strategist or even journalist. And then there is trading. Maybe a little bit more than a clock around twice or more every day the two come in contact. The other times trading makes money while the former is just opinion.
Long SCOK @ 12.36
Ol Dawg
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