TSG – Government market meddling reaches new highs…

Dear Trader,

TSG Stock Market Letter
Week Ending September 19, 2008
Topics Discussed This Week:

* Mother of all short squeezes (part duex)
* Leaders still struggling
* Earnings: So what next?
* U.S. Treasuries flow still falling
* Permits and starts fall a good thing…
* But builders still adding to inventories

In the aftermath of the SEC’s decision … Dear Trader,

TSG Stock Market Letter
Week Ending September 19, 2008
Topics Discussed This Week:

* Mother of all short squeezes (part duex)
* Leaders still struggling
* Earnings: So what next?
* U.S. Treasuries flow still falling
* Permits and starts fall a good thing…
* But builders still adding to inventories

In the aftermath of the SEC’s decision to finally start
enforcing Regulation Short Sales (RegSHO) on July 15 by
banning naked short selling in 19 banking and financial
stocks, regulators took yet another step in trying to calm
investors. Early Friday morning we learned that the SEC was
joining the British Financial Services Authority (FSA) in
taking another step, banning shorting for 790 financial
companies.

These moves in London and Washington follow a similar action
in Moscow to ban short selling by the Russian government in
an effort to calm panicky markets. Many including yours truly
think this move only adds greater credibility to the axiom
‘government intelligence is an oxymoron.’ I can see it in
Russia, part of the Wild and Wooly East when it comes to
financial markets and the U.K. run by a Labor government taking
such misguided action, but the U.S.?

But the real question is will government meddling in free
markets work any better this time?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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