Below is a summary of the short positions extant on companies which the FSA’s new market distorting short ban covers.
For starters, notice that percentages of stock on loan across the financials are relatively small. So today’s bounce will likely be driven more by sentiment than it will actual short squeezing.
You’ll perhaps also notice the weekly change in value of stocks on loan. Short positions have been being unwound all week, and prices have still crashed. Just look at HBOS.
Message to the FSA: you’re wrong.
Still, let’s enjoy the delusional false market while it lasts.
Table and data from stockbrokers Charles Stanley:
