Short-Selling Ban Does Little To Help The Stock Market

Government intervention can never supersede the powerful forces of the market.  Short-selling was not to blame for the downfall of many Wall Street institutions.  Monday was proof that curbing short-selling can do very little to support a Stock Market that is in a downtrend.  Stocks continued to sell-off throughout the entire day with little sign of strength.   Simply put:  the big institutional players are not putting their money to work in this market.  It is wise to keep your distance from this Stock Market.

Crude Oil certainly did not help the situation.  October futures were set to expire at the close of the trading session Monday.  Too bad many shorts were complacent and were run out scared as the contract settled above 120.00 a barrel.  Even the spike in the Nov contract was something to see, but Crude Oil is on a bear run and shouldn’t be deduced that crude will go higher.  All commodities for that matter are in pretty hefty downtrends and do not expect them to return to their former glory.

This market is simply not one to get heavily long, shorting is certainly a possibility.  Former agriculture stocks are setting up to be fantastic shorts:  Potash (POT), Monsanto (MON), Agrium (AGU).  These are very nice, POT being the best possible one.  Shorting is a difficult game, and should only be played by those who are very experienced.  Always look to short prior leaders:  Apple (AAPL), Google (GOOG), Research In Motion (RIMM), Baidu (BIDU), POT, MON, AGU, etc as these tend to move the quickest to the downside.

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