so what do you in a situation like this ?
The market is down and all analysts and economists are saying there is no immediate recovery and there is only a gloomy forecast. But then a sudden billion dollar rescue plan is announced to save the worlds biggest economy and stock prices shoot up… yeh Shoot UP.. so what do you do.
Lock in your profits ??
. ? sell while the going is good.. is the Big rescue plan gonna bring everything to normal… well i dunno about you , but i put my WBC shares that i got at 20.60 a month ago to sell today for a nice handsome windfall… so what are you waiting for lock in those profits while you can.
Our market is up a massive 190 or 3.8%. It was an unusual start to the day with the market opening 10:40am after ASIC banned short selling for 30 days effective this morning. They will review the practice once the 30 days are up. ASIC originality announced on Friday that all “naked” short selling (investors selling shares they don’t actually have) would be banned but upgraded the restrictions to all stocks (not just financials like in the US, Canada and Britain) because of the risk of hedge funds going go to town on our relatively small market. Babcock & Brown was up 110% in early trading.
- Both BHP and RIO up in ADR form on Friday, 9.59% and 14.71% respectively.
- Metals all up – Copper up 4.64%, Zinc up 3.79% and Aluminium up 1.64%. Nickel up 1.32%.
- Oil price up $6.55 to $104.50 – the price is up $13 in the past 3 days but analysts’ warn it could resume its downward trend.
- Gold down $32.30 to $864.70 breaking a 2 day $116 rally after the government announced a plan to ease the credit crisis.
- Bonds down with the 10 year yield up to 3.81%.
Ban on Naked short selling
Australia extended a ban on short selling to so-called covered transactions, following similar moves in the U.S. and U.K., in an attempt to arrest a more than 20 percent slide in its stock market this year.
Taiwan’s financial regulator banned short selling of 150 stocks after the market lost a third of its value in 2008.
In Australia, traders won’t be allowed to transact covered short sales, in which stock is borrowed to bet on share price declines, unless they are hedging positions, the Australian Securities and Investments Commission said on its Web site yesterday. The regulator abolished so-called naked short sales, in which traders don’t borrow the shares, last week.
The ban, which covers all stocks, triggered a 4.5 percent rally in Australia’s benchmark S&P/ASX 200 Index, led by Macquarie Group Ltd., Babcock & Brown Ltd. and Fortescue Metals Group Ltd., which had been targeted by short sellers. Hedge fund managers said the move could drive some of them out of business.