Obama makes a big fuss of the BP thing again with his populistic speeches but yet as he also did with Wallstreet then it comes to walk the talk he is rather not the strong hand either.
Germany To Ban Short Selling At Midnight, Only Naked Shorts To Be AffectedSubmitted by Tyler Durden on 05/18/2010 19:20 +0300
Update 4: Merkel to formally announce naked short-selling ban on Wednesday.
Update 3: Hearing naked ban will also apply to credit derivatives, i.e. naked CDS.
Update 2: Bloomberg chimes in quoting Deutsche Presse which reports that the ban will only apply to naked shorting. We are looking for official confirmation on what the final proposal will look like as there is a lot of confusion currently and no formal announcement. Regardless, investors are wondering what has changed today to institute this now.
Update: short selling ban will apply to stocks and euro government bonds according to German N-TV station. This is an act of desperation and will force all those who are long German assets to sell asap (selling is still legal).
Reuters headline for now, that the German Finance Minister will institute a short-selling ban at midnight. If true, this is huge, as it means the market will become massively dislocated once again. We can show charts of how Thailand, US and Greek markets reacted when this was introduced (short jump followed by significant slide lower), but you get the image. One wonders just how horrible the news flow over the next 24 hours will be for this drastic measure to be introduced.
Full and most recent Reuters update below:
4. Two crash warnings today - usually that would alert me rather its not going to happen. I expect some ugly stuff myself going forward but I doubt the near future will be more than a steep correction.
BERLIN, May 18 (Reuters) - Germany plans to ban naked short-selling on stocks and euro government bonds, German all-news network N-TV reported on Tuesday.
German coalition sources told Reuters earlier that Finance Minister Wolfgang Schaeuble plans to ban short-selling from midnight.
Economy Minister Rainer Bruederele told Reuters that it was possible the short-selling ban would be quickly enacted.
No other details were immediately available.
The Man Who Called Every Major Market Collapse
Since 1999 Just Revealed That 2010's Plunge
Could Begin on June 4th
How bad will it get?
At the minimum, Adam expects the Dow to plunge from 11,115 down to
What's worse, the Nasdaq could plummet 55% and the S&P 500 could lose 59%.
And get this...
According to his latest findings, the drop should officially begin on Friday, June 4th.
But that's just the tip of the iceberg...
In fact, this story is far stranger than you think.
That's why I consider this message the most urgent warning I've sent you in the past 18 months.
Given Adam's track record of predicting major market breakdowns weeks before they occur, I'd be fiscally irresponsible if I didn't alert you to this urgent breakdown immediately.
Let's Not Mince Words: This is not something you should take lightly.
Every Taipan reader must follow these instructions to the "T."
I'll share Adam's entire note with you below.
Believe me when I say that your near-term financial future depends on it.
We'll begin by proving to you why the crash that Adam is calling for is definitely poised to happen.
Adam's "Third Wave" Indicator Predicts a
Crash More Powerful Than Any Fall Since 1999
You're probably thinking that the market has been going straight up over the past 12 months.
Now, we're telling you that a crash is days away??
Yes, that's exactly what we're telling you.
I admit, it's understandable if you don't believe a crash is imminent.
But consider this...
Adam Lass has held the coveted position of "head chart technician" at Taipan for over 12 years because he has correctly called every major market crash dating back to before the terrorist attacks of September 11th, 2001.
Now, I admit, each time Adam sent me one of his "Storm Warning" predictions, I had the same initial reaction...
"The market's on fire; it's NOT going down."
Each time, I was dead wrong.
WARNING DATE: September 10th, 2001:
Adam begged 150,000 investors to brace themselves for a massive and immediate sell-off. This was ONE DAY before the devastating terrorist attacks of September 11th.
Those who listened to Adam not only avoided the entire 9/11 disaster, but they were also completely protected from the billion-dollar market collapse by using Nasdaq 100 Put options.
*NOTE: As remarkable as it sounds, the FBI even interrogated Adam to see if he had insider knowledge of a pending terrorist attack. That's how accurate his forecasting model truly is! To this day, the FBI still doesn't believe that his prediction was generated entirely by proprietary mathematical formulas.
WARNING DATE: May-July of 2002:
Adam and Bryan predicted another market crash in early May. As the Dow fell from 10,353.08 to 7,702.34, his readers made 806% in just over two months.
WARNING DATE: Q1 2004:
In early 2004, Adam's charts gave another crushing sell signal, which indicated a sharp dip in the S&P 500. As the index fell, as predicted, the protective move he recommended gained 359% in under three weeks.
WARNING DATE: Summer 2005:
Adam's charts indicated a "mini" summer crash, which allowed his readers to gain 58% and 73% off a semi-downside fall.
WARNING DATE: November 20, 2007:
Weakness in the financial, retail and technology sectors all confirmed that another downside move was on the horizon, allowing his readers to see gains of 1,361% in just eight weeks.
WARNING DATE: February 2008:
Most recently, Adam's system identified the latest "Winter Storm Warning," which lead to gains of 307% on Kohl's, 126% on UPS and 190% on Bank of America.
With Such a Stunning Track Record,
You Cannot Take Adam's
New Warning Lightly
Dow Theorist Richard Russell: Sell Everything Liquid, You Won't Recognize America By The End Of The Year
Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:
Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.
That's pretty intense!
Update: By popular demand, here's more on what he sees in the market. The gist is that the markets recent gyrations are telling him that the economy is in trouble:
And I ask myself, "Am I seeing things? The April 26 high for the Dow
was 11205.03. The Dow is selling as write at 10557 down 648 points
from its April high. If business is even better than expected, then
why is the Dow down over 600 points? And why, if there were 674 new
highs on the NYSE on April 26, were there only 20 new highs on Friday,
May 14? And if my PTI was 6133 on April 26, why is it down 17 points
since its April high?
The fact is that I've been seeing deterioration in the stock market
ever since early-April, and this in the face of improving business
news. The D-J Industrial Average is composed of 30 internationally
known top-quality blue-chip stocks. These are 30 of "America's biggest
companies." If Barron's is so bullish on the future of America's
biggest companies, then why isn't the Dow advancing to new highs?
Clearly something is wrong. But what could it be? Much as I love
Barron's, I trust the stock market more. If I read the stock market
correctly, it's telling me that there is a surprise ahead. And that
surprise will be a reversal to the downside for the economy, plus a
collection of other troubles ahead.
About Dow Theory -- First, we saw the recent April highs in the
Averages. Then we saw a plunge in both Averages to their May 7 lows --
Industrials to 10380.43, Transports to 4298.12, next a short rally. If
ahead, the two Averages turn down and violate their May 7 lows, that
would be the clincher. Such action would signal the certain resumption
of the primary bear market.
Just as for years I asked, cajoled, insisted, threatened, demanded,
that my subscribers buy gold, I am now insisting, demanding, begging
my subscribers to get OUT of stocks (including C and BYD, but not
including golds) and get into cash or gold (bullion if possible). If
the two Averages violate their May 7 lows, I see a major crash as the
outcome. Pul - leeze, get out of stocks now, and I don't give a damn
whether you have paper losses or paper profits!