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.

2 comments:

Anonymous said...

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.

Anonymous said...

Long SCOK @ 12.36

Ol Dawg

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