Friday, July 25, 2008

False story being pinged about

11:52 AM Short positions in all 19 financial companies covered by emergency SEC rule fell 85% since July 14. Fannie/Freddie down 98%. (Reuters)

Rev Shark commented:

If there is any doubt that much of the recent rally in financials was due to a short-squeeze, a report from Reuters that short positions in the 19 financial companies covered by the SEC emergency rule fell by 85% should remove any doubt. That doesn't bode particularly well for continued upside in banks since there no longer are any shorts to take profits on weakness. Banks are lagging today and I expect the group isn't going to do much going forward.

Only problem is that it's not true!

Here's the story:

NEW YORK, July 22 (Reuters) - Short sells dropped dramatically in shares of the 19 financial firms targeted by U.S. regulators' emergency short-selling rule this week, a market data company said on Tuesday.

Short sells dropped 90 percent in shares of mortgage finance companies Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), and declined 70 percent in shares of the other 17 financial firms affected by the rule, S3 Matching Technologies said, citing a review of data from its clients.

Short activity dropped in their data, not short positions.

Never think that a bear would manipulate a story to help their position would you?

That's the "internet" economy, and Wall Street.

People forget to think.

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