Posted on 03/13/2020 12:00:46 AM PDT by bitt
Main Street investors have increased their buying of stocks during the current market downdraft.
Where is all the selling pressure coming from?
Wall Street short sellers are attacking the market to make a killing, tank the economy, and get Trump out of office.
Trump must reinstate the uptick rule to stop this now!
Recent data shows that main street investors have increased their buying of stocks during the current dramatic downturn. And yet the market is tanking—the Dow closed down 9.99% today. Where is all the selling pressure coming from? It is from short sellers who are using the coronavirus panic to attack the market in an attempt to steal a fortune from Main Street investors. Short sellers do not have to own stock to sell it. They borrow the stock, sell it, and hope to make money by buying back at a lower price. The short sellers are attacking the market by relentlessly borrowing more and more stock and selling it, overwhelming the Main Street buyers.
This is how George Soros made a fortune by short selling the British pound.
As the market goes relentless lower and lower, Main Street buyers are pressured to sell as they see the value of their retirement assets tanking. This further feeds the downdraft to the advantage of the short sellers.
A few more days in the market like today and the risk is that Main Street investors, especially those near retirement, will throw in the towel and sell, taking massive losses and giving massive profits to the short sale raiders.
(Excerpt) Read more at thegatewaypundit.com ...
“... — including those that should rise and fall in opposite directions under “normal” market conditions.”
So you’ve noticed that too???
This is the first thing I thought of when the market tanked. George Soros at work. But it may be just independent short sellers.
Soros made his killing on the pound by recognizing it was way overvalued given the strength of the British economy then, shorting it while the Bank of England was trying to support it, and then enjoying the ride down when England couldn't support it. There are at least two sides to any market manipulation.
And to put this in perspective, this market is still overpriced. Look at Schiller P/E ratios right now. They are still way above the historic trend line, there is no reason to expect earnings to resume any upward trend for some significant period of time after this is over.
Moreover we are at the beginning of a wrenching change in economies as we the global economic order is reordered to something less dependent upon China and more regionally centralized. This will be terrible for China, but good for our more reliable trading partners.
And Brexit came at just the right time for them and us.
It's going to be a very bumpy ride ahead which will last a while, but our economy will be more resilience as a consequence.
When nobody buys stocks there is no "fortune" being "stolen". When the sellers greatly outnumber buyers the price drops until the sellers are willing to buy (like me this morning). Short sellers are making their money by speculating on a price drop. They may even be part of the media propaganda machine. But they didn't steal the money.
Also the next step is the short squeeze. Undoubtedly the dumbest of the short sellers will lose a lot of money in the near future, as they will be part of a buying panic.
Short selling is not complicated.
Assuming PDJT remains President and continues to pressure China, I believe you are correct. That kind of economic reordering will be stressful, though.
> “This is how George Soros made a fortune by short selling the British pound.”
I place my bet on Soros being behind the current selloff.
Yes but naked short selling is and it’s a crime.
Years ago, I proved that short sellers can lose money.
I had ways of losing money that no one has ever thought about.
I am writing a book, that guarantees anybody that buys it, and does just the opposite, will increase profits.
As an investor, I was a great salesman, and that is where I should have stopped.
Oh, well:(
Snuffing the felon and Sonderkommando would not only solve a lot of worldwide problems, it would start both a massive power struggle, a gang war of paybacks and retribution and consolidation, among his fellow hoods, and send a message that would resonate for a generation. Of course, it would also have unintended consequences, and you know how, uh, interesting those can be.
Even if this be true, in part, the short sellers are merely taking advantage of the fact that more than 50% of the value of stocks owned today is NOT OWNED by persons or institutions that make their own decisions about what stocks to buy or sell.
The majority is now run by mathematical algorithms that index funds use to keep an index fund in proportionate sink with the index it mimics - be it the Dow Industrials, the S&P 500 or any other. Those funds - index funds - are merely lemmings that follow whatever direction an index goes, up or down. Those lemmings now outnumber the value traders and speculators. So in today’s Wall Street Markets, it only takes a minority to push strongly enough in one direction - up or down a bit - and the majority holdings will follow more or less “automatically”. Repeated often enough they can become like a snowball that can’t stop itself.
A good benevolent dictator would realize the problem of having too many lemmings making a majority of stock investment decisions, as they just provide opportunities for market manipulators.
Wall Street just LOVES Derivatives of Derivatives. Big Bux involved so some can 'chopper their butts out to the Hamptons on Summer weekends.
Welcome my son, welcome.to the Machine
“Wall Street short sellers are attacking the market to make a killing, tank the economy, and get Trump out of office.”
Absolutely correct. They also have the media, including FOX, especially most of the weekend crew, fanning the flames.
“This is how George Soros made a fortune by short selling the British pound.”
First one I thought of, no doubt about it. He should be investigated and put away. Oh, wait, he’s a democrat!
Which would kill markets. Like ‘em or not short sellers provide fluidity to markets.
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