|
PureBytes Links
Trading Reference Links
|
Theo,
I am just starting on this list and your were the
first message. Interesting observation about what the "pro's" are doing. Have
you read Reminiscences of a Stock Operator. If not it will go a long way in
helping understand what the "pro's" are up to. In reality being a professional
means that they want to make money. Just hypothetically thinking. If the
brokerage house had a lot of shorts they needed to cover would they tell the
public to short / sell these stocks or would they tell them to buy, or hold
them? It's kind of a contrary approach, but if the broker purchased a large
quantity of stock when a company is new, or at a low point. Who does he then
sell them to after they have gone up. In the same regard. After he has short the
market Who does he get to sell him stock for the cover. I would think it would
be the general public. The ones that are being told to buy, hold , or
sell.
Also, If the unknowing are holding and buying a
stock I think this also allows brokers to then loan a percent of those
stocks to the knowing so they can sell short. I think brokers have to
have stocks in there account in order to loan them to some one wanting to
short sell the market. Kind of like a bank needs to have money in its account so
it can loan cash out. The bank has its set reserve limits on how much
of its customers money it can loan out. I don't know, but I would also think
that a broker would also have a reserve limit on how many of its customers
stocks it could loan out. I don't think that a broker would go to the market
place and by stocks at a high price knowing that the market is going down to
loan you the stock so you can sell short. I would think that the broker would
want to pass this loss on paper on to someone else. I don' t know this for sure.
Maybe someone else in the list does. I think I am thinking about this from the
right perspective. Any comments? Thoughts? Ideas? Where do Brokers get their
stocks to loan to people wanting to short sell the market?
Jerry Medlin
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Theo
Lockefeer
To: <A title=metastock@xxxxxxxxxxxxx
href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx
Sent: Thursday, October 10, 2002 3:02
AM
Subject: Oh Boy , Oh Girl , Oh God
Hello all "lefters"
This list is dying or ?
I recently studied the Buy, Hold, Accumulate,
Markt
outperform ratings etc of all those so-called
professionals
and they are all making the same mistakes over
and over
again : unbelievable.
The Prices of many stocks go lower and lower and
they
keep all saying things like : upgrade from Hold
to Buy :
This is principally wrong because we are in a
Bear market
Boys and if you buy in a bear market you are
going against
your friend (the trend).
If a stock is in a DownTrend you NEVER
should buy it !!!!!!
But they really donot see it : ok : for me no
problem but
those heavenly paid professionals are making such
terrible
mistakes again and again : unbelievable as
said................
OK for some stocks it looks like we are reaching
bottom-
levels : so bears be carefull here and donot
short the bottom
because it is essential the same as when you are
buying the top....................
They never did see the other side of the coin
:)
Good Trading ,
Theo
---Outgoing mail is certified Virus
Free.Checked by AVG anti-virus system (<A
href="http://www.grisoft.com";>http://www.grisoft.com).Version: 6.0.394
/ Virus Database: 224 - Release Date:
3/10/2002
|