We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
AMTD 37.73-0.2%Aug 12 3:59 PM EDT

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: MJ who wrote (1837)2/26/2009 9:32:47 AM
From: OldAIMGuy  Read Replies (1) of 1848
Hi MJ, Re: AMTD "Accumulation".................

I, too, was surprised with the steady accumulation pressure on the stock even as the legs were being cut out from it and essentially all other stocks. Most other companies show a switch to distribution with the Oct/Nov panic.

I also share your concern relative to shorting. The dumbasses at SEC who let the hedge fund lobbyists talk them into removing the "uptick rule" for short selling in mid '07 should be canned. They claim that their test showed the uptick rule didn't do anything. But when you read deeper, you find the test period was 2005 to 2007. Hmmmmm, a bull market with very low VIX - a "perfect" time to be testing the uptick rule.

I believe the 70+ years the uptick rule was in place probably had more variety of markets than their test period. It was not that extreme a rule that stocks couldn't be shorted, but it was effective enough to make anyone interested in shorting a little more hesitant. That was all the markets needed.

We need to lobby to get the uptick rule back in place. Charles Schwab went on public record with a big ad in the W$J requesting it be put back. So, we're not alone in our concern about unlimited short selling.

In my M.O. I carry a fair amount of cash in MMFs at AMTD. They pay a competitive rate. I figure that their commission is reasonable compared to their payout on cash. The brokerages with deeper discounts for commissions usually don't pay squat for yield on MMFs. So I guess it's a trade-off.

Best regards, Tom
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext