Definitely worth knowing.........from Jim Sinclair

jmski52

So, if you're not into conspiracy but still want to know some facts - check it out and make your own decisions about silver...

From Jim Sinclair - "New Rules will cause Panic for Shorts"


I say, "it's about time!" Imagine what the market for silver would be like with some accountability.

OPA

<< <i>So, if you're not into conspiracy but still want to know some facts - check it out and make your own decisions about silver...

From Jim Sinclair - "New Rules will cause Panic for Shorts"


I say, "it's about time!" Imagine what the market for silver would be like with some accountability. >>



I'm not holding my breath waiting for it to happen. Similar "song & dance routines" have been posted on the web for years. The powers in charge will not allow this to happen.

jmski52

I'm not assuming any kind of short squeeze, but I'm very glad to see some action taken to set things right in this market. Hey, if a short squeeze happens, it happens, and it wouldn't break my heart if it did.

I'm just sayin' that these are positive developments for the silver market, in my ever-so-humble opinion.

NyKyFyR

Ok, for the layman (me) can someone explain in terms a layman (me) can understand?

Thanks

carew4me

<< <i>

<< <i>So, if you're not into conspiracy but still want to know some facts - check it out and make your own decisions about silver...

From Jim Sinclair - "New Rules will cause Panic for Shorts"


I say, "it's about time!" Imagine what the market for silver would be like with some accountability. >>



I'm not holding my breath waiting for it to happen. Similar "song & dance routines" have been posted on the web for years. The powers in charge will not allow this to happen. >>



Agreed. Same ol thing I have heard for last 10 years.

Studio60

<< <i>Ok, for the layman (me) can someone explain in terms a layman (me) can understand?

Thanks >>



Ditto.

roadrunner

In reading those references I too don't see what's really changed. Isn't there still a 13 day window for naked short sellers to hammer an equity and then cover at a much lower price? After 2-3 weeks of short selling there wouldn't be much left of the equity and the price would be cheap enough that the naked shorts would be happy to cover at that point.

I see reference to a "goal" to require covering naked shorts within 24 hrs but nothing of substance to ensure it happens. And doesn't the existing "protective" 10% daily circuit breaker still enable short sellers to hammer a stock 10% per day until they achieve their objective? Seems to me that daily 10% whacks based on naked shorting causes plenty of havoc as it is.

roarunner

jmski52

I too don't see what's really changed. Isn't there still a 13 day window for naked short sellers to hammer an equity and then cover at a much lower price? After 2-3 weeks of short selling there wouldn't be much left of the equity and the price would be cheap enough that the naked shorts would be happy to cover at that point.

Yes, however it appears there will now be a public record of the machinations that can be used to document whether something illegal has occurred. Of course, that is not to say that the banks won't find some other way around it.

Here is what I find somewhat interesting:

<<Those MMs accessing the bona fide MM exemption from executing pre-borrows or “locates” before admittedly naked short sales must now FORMALLY acknowledge the accessing of that universally-abused exemption. Being that these trades are theoretically being made to “inject liquidity” then the excuse to hide the related trade data from the public’s eyes goes out the window. You can’t have it both ways and claim the bona fide MM exemption and later claim that the related trade data needs to be kept secret because it might reveal a “proprietary trading strategy”.>>

Which results in:

<<No longer can the offers be of 1 million shares and the offsetting bid good for the minimum 5,000 shares.>>

I didn't know that the market makers had some sort of exemption that allowed them to keep their trading records secret, and that this exemption was predicated on the idea that naked short positions can be taken to inject liquidity. We know that liquidity has nothing to do with it, and if this rule is enforced it will eventually lead to someone like Ted Butler being able to analyze the data and to determine that the market is being blatantly manipulated by the banks. If that is proven, then it's possible that it opens the door for all kinds of lawsuits.

Nothing we didn't already know, but now it seems to be coming closer to a public airing of the dirty laundry. Again, nothing may come of it if the regulators don't do their jobs, but the framework is being put into place to stop the illegal and unethical practices. Maybe.