The purpose of this blog is to retain an electronic diary/archive of key market moving news and events. The morning note includes my personal views on the financial markets and fundamental research pulled from newswires, Bloomberg, First Call, and other market intelligent websites and blogs. The note helps me prepare for the trading day and helps my PM position the porfolio for upcoming events and catalysts.
Friday, September 19, 2008
Trading on Mars - You are not allowed to manage risk!
The price discovery mechanism in the marketplace no longer exists because the SEC rule does not contain a market maker exemption. The blanket aspect of these short-sale restrictions has completely rigged the prices on your screens. For the first time in my life, I do not trust the quotes on my screen. The SEC rule not only banned short sales but it also banned effective hedging and risk management. This is a total joke.
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