So it seems that the SEC can manipulate stock prices but no one else can. This was most clearly seen by its decision to ban short selling on Friday. Real smart! In fact everything the government has been doing as of late has been questionable. If you were to ask yourself, who was more likely to nationalize the mortgage industry and to absorb the largest insurer, not to mention take on all the bad mortgage debts taken on by the banks, and then to ban a critical element of free markets by banning short selling of 799 financials stocks, and possibly GE too, and the countries which you had to choose from was Russia or the United States, I bet you would say Russia. Instead it was the United States. I would. Something you could expect out of a Vladimir Putin, but not the U.S. government. We’re not trying to sound political but this will have major long-term ramifications we haven’t even begun to understand.

Part of a free market is the ability to fail and to succeed, but what you can’t do is eliminate the potential of failure by holding all the nemrod’s hands out there who want to give doomed loans to every Tom, Dick, and Harry. In any case, enough ramblings, but it is a tough pill to swallow, when all of your research is right and your chart analysis is correct, and then the Fed takes away your ability to benefit from your analysis. Just completely unprecedented.

Here’s the Nasdaq and S&P charts…