Posts filed under “Short Selling”

Cash = 100%

In light of this Wednesday morning’s commentary, a few emailers asked me were we stood after today’s action.

The short answer: We are now all cash. We have no positions long or short. We are actively looking for shorts.

I will post an update when we make a serious change in our tilt.

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UPDATE:  May 6, 2010 5:27am

Several readers wanted to know the reasoning behind this:

1) Greece/EU had nothing to do with our tactical rebalancing.

2) This was strictly a technical call — market internals, sentiment, duration of rally, volume were amongst the factors that came in.

3) This is not an end of primary trend expectation — rather, it is looking at the potential of a  secondary trend.

4) Ideally, if we get lucky, we will see a rally over the next week, with deteriorating characteristics — that sets up a better entry for shorting new positions.

5) We had a very good Q1 with a handful of strong positions — EK, MGM NYT, THOR, C — so some of the thinking behind our move was locking in a profitable 1st half of the year. We can now look be very selective in identifying trading opportunities.

6) We are now concentrating on screening and identifying new short ideas . . .

Category: Short Selling, Trading

Congress: Shorting America?

> Source: Congress Members Bet on Fall in Stocks JASON ZWEIG, TOM MCGINTY And BRODY MULLINS http://online.wsj.com/article/SB10001424052748703871904575216491495135642.html

Category: Politics, Short Selling

Ackman, Chanos on Short Selling

William Ackman, managing partner of Pershing Square Capital Management, discusses the benefits of short-selling, Goldman Sachs’ fraud charges and more with CNBC.

Airtime: Tues. Apr. 27 2010 | 7:10 AM ET

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Short selling is a key focus of the Goldman Sachs hearing Tuesday on Capitol Hill. James Chanos, of Kynikos Associates, and Bill Ackman, of Pershing Square Capital, share their insights.


Airtime: Tues. Apr. 27 2010 | 8:05 AM ET

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Hedge fund manager Bill Ackman shares his parting shots with CNBC.

Airtime: Tues. Apr. 27 2010 | 8:54 AM ET

Category: Short Selling, Video

Exonerating the Shorts

Interesting discussion by the always worth reading Mark Hulbert about a recent research paper on Short Selling. While I agree with the paper’s conclusion, it overlooks two major related issues regarding short selling. Let’s look at a few excerpts first: “Short-selling became particularly controversial during the recent bear market, when many of its practitioners turned…Read More

Category: Research, Short Selling

Waiting for the Next Inflection Point

What are the pros doing? I’ve been speaking with various institutional investors, and I can tell you there is little in the way of uniformity of thought. Here we are, up 70% or so from the lows of over a year ago, and there is no consensus — which is probably a good thing. What…Read More

Category: Markets, Psychology, Short Selling, Trading

60 Minutes: Michael Lewis’ The Big Short

Michael Lewis’ new book “The Big Short: Inside the Doomsday Machine” looks at the financial meltdown.

Part I

Watch CBS News Videos Online

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Part II

Watch CBS News Videos Online

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There are numerous web extras here:

Web Extra: Is Wall Street Overpaid?
Web Extra: Bailout Blues
Web Extra: The $8.4 Billion Bet
Web Extra: Wall Street Misfit
Web Extra: “The Blind Side”

Source:
Wall Street: Inside the Collapse
Author Tells “60 Minutes” What Led to Wall Street Collapse and Who Predicted It

http://www.cbsnews.com/stories/2010/03/12/60minutes/main6292458.shtml

Category: Bailouts, Short Selling, Video

Lehman News Round Up

“Dick Fuld is going to be bankrupted and he’s going to spend the rest of his life in court fighting legal battles. There maybe others forced to do the same.” -Dick Bove of Rochedale Securities. Bove had  all nine volumes of the examiner’s report printed and bound. (Barrons) > As it turned out, Lehman Brothers…Read More

Category: Bailouts, Legal, Regulation, Short Selling

Chanos Reduces Bets Against Health-Care Stocks

click for video

Category: Short Selling, Video

Justin Mamis On New Short Selling Rules

Here is my quote of the day: “Those so-called adults who fuss about short sales are really silly. What competent grown-up would short a stock after – that’s after – it has fallen 10%. Don’t these people understand how the stock market works? Selling short on an uptick is sound, to say nothing of having…Read More

Category: Regulation, Short Selling

SEC Short Ban: “Regulation By Placebo”

And speaking about not understanding what caused the bear market, we have this recent SEC action: “The Securities and Exchange Commission narrowly approved curbs on short selling, addressing what some consider a cause of the 2008 financial crisis despite criticism that there was no evidence to support the move. The commission voted 3-2 on party…Read More

Category: Regulation, Short Selling