Ban on shortselling ends at midnight

The US ban on shortselling ends at midnight. What are everyone thoughts on the impact this will have on the market tomorrow.

After the intrest cut it looked as if the market might get a short gain today, the DOW was even in triple digits gain for a short time but has since dropped into negative numbers again.

I'm not exactly sure what bringing short selling back into the market will do, I'm guessing it's def not going to help things much.

What are veryones thoughts.

Stocks will decline because of shorters but it is necessary to maintain a balance and keep things in check. Wait until after the ban, don't purchase anything today that could be risky/volatile and shorted like hell tomorrow.

I am going out on a limb here... I expect a crash. BIG time.

But I could be proven wrong... Somehow, I doubt it.

This sounds like a job/question for MemoryShock -- I just U2U'ed him -- as he always seems to have an informed balanced POV on these types of things.

There is another great thread around here, I saw it yesterday, on Naked Short Selling. Anyone who is interested in this topic should probably check that out too.

Cheers!
TWISI

Well the market looked like they would get a gain today, but the lack of confidence was apparent in the last 30 mins of trading.

So couple that total lack of confidence now with shortselling tommorow and that could make for a very volitile situation to say the least.

What do you guys think the possibility that shortselling will be banned yet again after a few hours tomorrow in the markets if it has a very bad outlook.

Or can they even ban it totally? Is that sort of mandate allowed?

Here is my take. You have some people that just like to short. I'm one of them. It's easier to predict that a stock is going to go down than it is to predict a stock to go up.

C
BAC
MS
GS
JPM


These stocks need to be shorted. Even with no shorting, the last 2 days have been devastating.

I think you might see some stocks actually go up tomorrow, as people cover their shorts in other sectors.

F
GM
Ford and GM may really go up tomorrow.

You might see gains in some tech stocks such as AAPL as well.

My bet is that we will see a holocaust in the financial sector tomorrow.

Doesn't it seem a little too coincidental that people weren't allowed to short sell during this past week given everything that's happened?

I am no way market savvy but it seems natural that everyone (the public)plans on shorting tommorow. Could we see one day of massive gains followed by a collapse? I really have no clue.

The overnight markets should be interesting.