Short Selling Ban Not Working
Financials led the rout on Monday even as more names were added to the list of stocks banned from short-selling.
Investors sent shares of Washington Mutual , Wachovia and Wells Fargo substantially lower despite news that the NYSE has banned short-selling of 30 additional stocks; all of whom have large financial services operations. (These stocks were in addition to those 799 stocks temporarily banned from short-selling that was issued by the Securities and Exchange Commission on Friday.)
“A lot of investors were driven out of the market by the ban,” explains a clearly aggrevated Jon Najarian on Fast Money. “If the government is going to put in a ban on short-selling it needs to be for everyone. Otherwise you pretty much get a rigged game. It makes no sense to me at all!”
Jon Najarian is clearly frustrated. But we couldn’t let him go without asking him about options action in the financials. It seems the only stock in the space that’s caught his eye was AIG . “That stock moved higher, spectacularly, for most of the day,” he says. Might be worth keeping an eye on it.
> NYSE broadens Short Selling Ban
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Trader disclosure: On Sept 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (AAPL) And (AAPL) Puts; Pete Najarian Owns (ETFC), (MYL); Pete Najarian Owns (MS) And (MS) Puts; Pete Najarian Owns (RIMM) Call Spread; Pete Najarian Owns (TSO) Call Spread; Pete Najarian Owns (WB) Put Spread; Finerman Owns (GS); Finerman's Firm Owns (RIG), (PDE), (WM), (MO), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm Is Short (VNO), (WFC), (IYR), (IJR), (MDY), (SPY), (IWM), (BBT), (COF); Seymour Owns (AAPL), (COP), (ETFC), (MER), (TSO); Seygem Asset Management Owns (PTR), (EEV); GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"
Jon Najarian Owns (JPM) Preferred Shares; Jon Najarian Owns (C) Preferred Shares; Jon Najarian Owns (MER) Preferred Shares