i have one phantasmal hope. My broker and i had a lengthy rap about how quietly the powers removed the tick rules for selling short(the press releases were shouting about rules now against naked shorting and whispering ' o yes, by the way the over 70 years old tick rule regards shorting has been removed').
We agreed that no way the SEC board voted 5-0 to remove an over 70 year restriction to make life easier for independent traders, the big push had to come from the most powerful on Wallstreet, such as JPMorgan/GS/ML and such.
So we then asked "Why would these giant brokers want a no tick rule when that adds a very dangerous component on a major negative event day?"
My broker went into the matter of shorting long shares against the box while having over time haivng these giant houses slowly shifting their derivatives to be overweight short sidef
On an ugly day they could short sell from an arsenal on longs against the box and drive the market down into their derivatives shorts.
Alan Newman and Barton Biggs BOTH are calling this year as equivalent to 1987.
They both, as of two weeks ago were calling for more upside to market but both see a sharp and vicious sell-off formation setting up.
Going on the principal that TheBigBoys are utterly amoral this removal of the tick rule actually makes them now crash proof on any 10 to 20% rapid drop--in fact they would make a bonanza of money, given they were slyly positioning their derivatives to overweight short equities.
Now i repeat this is ALL CONJECTURAL, virtually Phantasmal thinking--i claim no more.
But, what if the derivatives market in the Giant Houses have been shifting in the past months to short weighted in that Forbidden Zone to ALL but a Few, where all exists behind a dense fog.
The Big Houses have written in stone, "Protect ourselves and let the rest go to hell".
Marc Faber, Alan Newman, Jim Rodgers all think the game is about up, and i say, if the game is about up, The Biggest of the Bigs, know this and are prepared but telling NO ONE.
My Broker said he watched a lenghthy debate between Jim Rogers, Marc Faber and Ken Fisher via video feed from Bloomberg's this past week, and he said Rogers and Faber chewed up and spit Ken Fisher out.
Rogers stated he is now short U.S. equities.
All this i write NOT to sell that the bear is alive, as indeed TheBearis in a low oxygen Coma.
This is just trying to give it some oxygen before all we bears die:)
Now i have written there will be NO 10% correction after deciding a couple years ago the derivatives game now RULED and the masters of the derivatives world would not permit a 10% correction. But NOW i am asking are they in the process of CHANGING THE GAME just as everybody becomes pretty damn sure what the game has been these past several years?????
Would the Big Boys ever be so Machiavellian?? No, of course not(VBG:) Max
p.s. All of the above written just for the "fun of it", i like to puzzle even if there is NO puzzle:)
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