Sunday, November 29, 2009

New Margin Requirements

If the shorts are already squeezed...perhaps they are also running low on margin reserves...The margin requirements increase demonstrated below, could easily create another squeeze if shorts are indeed over seems likely to be the case. Shorts are running low on funds, have been hammered so many times that money is running low...these are ideal conditions for people to buy too many shares in leveraged short positions to try to make money back. However, with all the bullish reading on sentiment flying around, perhaps retailers dove in hand over foot and went full margin long leveraged ETF's...but somehow I think this is just another setup intended to squeeze the shorts. So, perhaps, no matter the news...we get more up in the Goldman Sachs/PPT market...I mean stock markets. Isn't FINRA a division of GS? or has that not been announced yet.

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