Will there be any Force Selling again

Light of Hope wrote:even though we all were expecting a relaxation of credit rules, which is not happening, at least for this year. Does this mean that all brokers will have to settle their credit before ending this year? which would lead to force selling by them. If this is the case when do you guys think this would take place? I know my post is negative but I think this is the reason for low volumes.

Light of Hope wrote:even though we all were expecting a relaxation of credit rules, which is not happening, at least for this year. Does this mean that all brokers will have to settle their credit before ending this year? which would lead to force selling by them. If this is the case when do you guys think this would take place? I know my post is negative but I think this is the reason for low volumes.

Tiger wrote:More credit will be good with low interest rates for all investors. But credit with interest rates at 15-18% will be a killer for many investors.

With relaxation of credit rules where would we see the market? at 6000, 6500, 7000, 8000, or 10000 ? In each of these cases what will happen to market valuations? What would be the reaction from HNWI and foreign investors and small timers.

My feeling is that any credit relaxation will be the last nail in the coffin for many small timers. But if that is what required by them I will join to pray for more and more credit from brokers.

Academic wrote:

To put it blunt, if the market went up unnecessarily (backed by artificial money), it should be corrected itself. IMHO, SEC regulations did two good things. It

1. Stopped further undue up movement
2. Dried up the bubble without a sudden crash

Once all credit are cleared by December 31 (and no pseudo cash in the system), the market would start its own up-movement if it has corrected sufficiently (I'm in a view that we are not far-away from that point).

If credit clearance deadline is extended, the turning date will be pushed off further down the line. So I'm asking you, would you like to turn the market green sooner or latter?

rijayasooriya wrote:

Academic wrote:

To put it blunt, if the market went up unnecessarily (backed by artificial money), it should be corrected itself. IMHO, SEC regulations did two good things. It

1. Stopped further undue up movement
2. Dried up the bubble without a sudden crash

Once all credit are cleared by December 31 (and no pseudo cash in the system), the market would start its own up-movement if it has corrected sufficiently (I'm in a view that we are not far-away from that point).

If credit clearance deadline is extended, the turning date will be pushed off further down the line. So I'm asking you, would you like to turn the market green sooner or latter?

Then ur suggestion is just wait and let the market to move up on its own without doing anything ? I agree with u that credit clearance deadline should not be extended.

rijayasooriya wrote:Some are against credit relaxation and other relaxation.I would like to ask them what do they suggest to prevent this down fall ? Or do they expect market to go furthur down wiping out retailors ?

illuminati wrote:

rijayasooriya wrote:Some are against credit relaxation and other relaxation.I would like to ask them what do they suggest to prevent this down fall ? Or do they expect market to go furthur down wiping out retailors ?

For sure almost all retailors will be wiped off by end of this year.Most have vanished already.Be careful buy and hold guys.

rijayasooriya wrote:

Tiger wrote:More credit will be good with low interest rates for all investors. But credit with interest rates at 15-18% will be a killer for many investors.

With relaxation of credit rules where would we see the market? at 6000, 6500, 7000, 8000, or 10000 ? In each of these cases what will happen to market valuations? What would be the reaction from HNWI and foreign investors and small timers.

My feeling is that any credit relaxation will be the last nail in the coffin for many small timers. But if that is what required by them I will join to pray for more and more credit from brokers.

According to u also only one nail is left. What is/are ur method/s to remove the already driven nails from the coffin ? Otherwise last nail shall be driven in near future.

Appuhamy wrote:
@Academic. you suggest to wait and let the market to move up on its own without doing anything. but Some of the fundamentally strong counters have corrected over 50% from top. then what is the assurance you can give that these kind of counters don't go down further. Doesn't it have a major impact on investor confidence?

hirankb wrote:The brockers credit should be stopped completely and only financial institutes be allowed to give credit.

illuminati wrote:

rijayasooriya wrote:Some are against credit relaxation and other relaxation.I would like to ask them what do they suggest to prevent this down fall ? Or do they expect market to go furthur down wiping out retailors ?

For sure almost all retailors will be wiped off by end of this year.Most have vanished already.Be careful buy and hold guys.