BERLIN, May 18 (Reuters) - German Finance Minister Wolfgang Schaeuble plans to ban short-selling from midnight, coalition sources told Reuters on Tuesday
The big question IF TRUE is why now???? Is there something going on behind the scenes and this is to preempt something? Is Germany about to make a big announcement?? There has been rumors of Germany leaving the Euro which I have strongly discounted. Trying to figure out the derivative as figuring out what is motivating this seems very important. IF TRUE this short selling ban doesn't seem to be as a result of panic like all previous short selling bans. The DAX is up close to 3% in the past two days and down only about 6% from its highs in March. There has to be something else going on???
The way these things often work is a large rally and than crash afterwards. I am not sure you get the large rally in the U.S. if there is actually a reason Germany is doing this before some big annoucement.
I have no idea. Ideas WELCOME!!!
The market looks broken. Seems like it may be better to short and ask questions later. In the end this can't be good.