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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (81772)	9/13/2001 3:52:59 PM
From: el paradisio	Read Replies (2) \| Respond to of 99985

LG, I think the recent tragedy might be connected to stock market. I remember Canadian Biogen few years ago...the stock was going up and down because of the bomb threats and one day few bombs exploded. Soon, they found the people, who were heavy shorting Biogen by that time and making big money. This is just my speculation, but we can't excluded this possibility... If you look at TRAN chart...Sept 04 was a short term top at 2860 and by Sept 10 we had 200 points decline to 2660. The same with BA...Sept 04 was at 52 and Sept 10 at 43. Decline almost 20% in one week. Well, you never know, where you can find the key to the puzzle... God bless America! el

To: HairBall who wrote (81772)	9/14/2001 6:37:53 PM
From: t2	Respond to of 99985

LG, Good post.

To: HairBall who wrote (81772)	9/15/2001 11:47:02 AM
From: Ron	Read Replies (1) \| Respond to of 99985

Regulators to Temporarily Ease Rules On Companies Buying Their Own Stock By MICHAEL SCHROEDER Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- Fearing that a rush of orders could cause volatility in stock prices, the Securities and Exchange Commission on Friday said it would ease limits on companies repurchasing their own stock to help assure orderly markets when trading resumes Monday. "These market's are the world's strongest and most vibrant, in spite of the heinous acts of last Tuesday," the SEC said in a brief announcement. "Investors should be assured that U.S. markets will function effectively and fairly, and that market and investor protections are squarely in place." The regulation, which is designed to prevent market manipulation, restricts companies from trading in the first and last 30 minutes of each market day. The SEC said it also will set the amount of shares each company can repurchase, pegged to a formula related to recent average daily trading volume. The commissioners, who are concerned with how the markets will respond when trading resumes Monday morning after a four-day hiatus, are exercising their authority to grant relief for up to 10 days from its rules. After the 1987 crash, the SEC took a similar emergency action. The idea for the relief came from the SEC. "We reached out to the issuers for suggestions on things we could do to provide the most liquid markets when trading resumes," said Annette Nazareth, SEC's director of market regulation. She said the SEC approached pension funds, broker-dealers, and trade associations for recommendations on easing rules that could allow for the orderly reopening of markets. Harvey Pitt, who represented many major companies as a private attorney for over two decades before he became SEC chairman last month, specifically proposed the idea of easing the rule governing company stock repurchases, SEC officials said. Brian Borders, executive director of the Association of Publicly Traded Companies, said the SEC action may be coming too late for companies to make decision about repurchasing plans. He said boards of directors, who normally must approve stock repurchases, likely won't have time to meet until next week. Mr. Borders said he approached the SEC and voiced his support for easing the rule. In addition, the SEC also may lift restrictions on officers, directors and big holders from trading in their related company stock. Regulations stipulate that if insiders trade more frequently than six months, they must return profits from such trades. The SEC also is considering waving a new auditor independence rule that prohibits auditors from doing bookkeeping services. An SEC officials said the commission recognizes the need for auditors to help reconstruct books and records for client companies from Manhattan's financial district which may have lost all their records in the terrorist attack. House Financial Services Chairman Michael Oxley (R., Ohio) said, "Those are the kinds of things that can facilitate the market working better and provide some confidence, particularly in the early going on Monday." SEC officials said there have been suggestions that the regulator temporarily restrict short sales and trading by certain investment groups, such as hedge funds. Some companies fear that stock prices could be beaten down, for instance, if there were a flood of short sales, in which investors borrow shares with the expectation that they will replace them with cheaper shares if the price declines. "There will be no prohibition on short sales or trading by any other market participant," Ms. Nazareth said. Write to Michael Schroeder at michael.schroeder@wsj.com