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.
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3 comments:
What is the timeline to finish the sale?
Hey man, market is about to pop.
The filing said they would be selling from time to time.
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