some brokers’ debts are in the billions of rupees

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

mono wrote:

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

that's nonsense. Some of us have stop losses when they get hit we sell, for example I've sold over 10 mn in the last couple of weeks. And I carry no debts. there is something called momentum to the market and it works both ways. When some people start selling it triggers waves of selling. this gets compounded when people are not willing to commit to buy back again.

psst.....



you know if you ask me there might not be a credit crunch in March. a lot of the credit could have been easily cleared off these 1 & 1/2 months. That might also explain why some of these large caps are sluggish. a lot of break out are breaking down because of credit clearing. HHL being the most recent

Academic wrote:

mono wrote:

anu wrote:Thanks tubal. That is exactly what I meant.

If this 20bn is only institutional outstanding, there is no reason for small investors to sell at a much lower levels. So T+5 clearing, causing this mayhem is not logical.

that's nonsense. Some of us have stop losses when they get hit we sell, for example I've sold over 10 mn in the last couple of weeks. And I carry no debts. there is something called momentum to the market and it works both ways. When some people start selling it triggers waves of selling. this gets compounded when people are not willing to commit to buy back again.

Following is a post by you few weeks back. Is it consistent?

psst.....



you know if you ask me there might not be a credit crunch in March. a lot of the credit could have been easily cleared off these 1 & 1/2 months. That might also explain why some of these large caps are sluggish. a lot of break out are breaking down because of credit clearing. HHL being the most recent

http://forum.srilankaequity.com/t657-today-market

mono wrote:I think people are just aping the december sentiments here, about retail credit clearance. I doubt there is a lot of retail credit left over. As rajitha said most people are in a new credit cycle.

wis wrote:For some people this buying on credit, margin trading is like using drugs or playing casino. They're buying more and more even though they're facing heavy losses. They add more and more debts expecting profits in the future.

Rajitha wrote:

anu wrote:Rajitha, what you say may be logical.

But why do you think the shares accross the board were falling like in a bottomless pit on thin volumes. If forced selling is not happening, what is the fun of selling at a much discounted prices, sometimes at loss. Essentially those are not institutional investors who were selling but retail lots.

It cannot be only the T+5 case, as the period in red was too long. It cannot be explained as a pure profit taking too, when many fundamentally sound stocks have gone to pre-sept.10 levels.

We need to think

Yes think first! What drives the CSE ? Its certainly not good PE or PBV or growth . (How can you define some of the CARS shares that under perform going up then and rights trading above share price?) Its the anticipation and forums + news papers talking about the huge credit clearing that is said to happen at the end of this month! Also funny thin about T+5 is some brokers did not follow it and they were forced to few days ago! Also when you buy on credit you have to clear it now no matter how low the price is! Some like me even keep extending the small amount of credit I had buying low and selling high for few weeks now but finally sold them at a loss few days back!

Did you ask your brokers BTW how much month credit clearing he has to do ? Please go ask him that first and come here and let me know than maybe type speculations! ( Unless thats your intention) For me all my brokers have 0 credit to clear by end of the month as they all have been wiped out already.

anu wrote:
And, good to see this type of typical class-room-bully type of posts sprouting from immaturity.
May be a bit more maturity needed to respect views of others and respond, as no one is perfect and no one posts here with 100% accuracy.

Intolerance towards others views is a sign of weakness, which needs your attention my friend.

And, to the point - I did check up with my brokers.

The reasons for market down fall seem to be many - Credit clearance, margin calling, T+5 (which is not strictly adhered), selling for forthcoming IPOs, stop-loss selling etc.

And they do have credits to be cleared, which is an important factor.


For your information, I have not settled over 2Mn. for the last 2 weeks, for which I have not got a call from them still..!!

Meta Trader wrote:Wow !
what a discussion !
i think i was too late to contribute in here

tubal wrote:Guys, there is credit to be cleared. My broker says the amount is about 20 billion. While everyone keeps talking about the T+5, the ground reality is that it hasn't been strictly implemented by all brokers. Some have but some have not.

Don't also forget that purchases made before 31/12/2010 are not covered by this T+5 rule. I remember how some people at investnow were gleefully urging others to buy before the dec 31 deadline. I think a lot of people have done exactly that. To be quite frank, I did too but I sold off all that stuff in February.

Rajitha wrote:
Did you ask your brokers BTW how much month credit clearing he has to do ? Please go ask him that first and come here and let me know than maybe type speculations! ( Unless thats your intention) For me all my brokers have 0 credit to clear by end of the month as they all have been wiped out already.

mono wrote:Anu, stop playing victim. I know the booboo hurts, but deal with it. this is the internet.

So far I haven't seen any evidence from you. your 2 million story doesn't help your cause one bit. It shows how easily T+5 can get out of hand. So far most people who have been in touch with thier brokerages are claiming that their brokerages don't have credit to clear. They could be lying, but all of them lying seems a little too much.

anu wrote:

mono wrote:Anu, stop playing victim. I know the booboo hurts, but deal with it. this is the internet.

So far I haven't seen any evidence from you. your 2 million story doesn't help your cause one bit. It shows how easily T+5 can get out of hand. So far most people who have been in touch with thier brokerages are claiming that their brokerages don't have credit to clear. They could be lying, but all of them lying seems a little too much.

mono - the last thing I would want is to play victim. No member saw any evidence from you and Rajitha either. It is the opinion of every member. You and Rajitha can give your opinion. But overtures and bullying will not be taken up with folded hands.

It is not my intention to write back in the same language. I only pointed out when it leaves a bad taste in the mouth.

duke wrote:no no sir we don't have any credit sir. we're clean sir. it's probably other brokers. i have a list of good shares. (looks at the portfolio of the big investors with billions of debt) yes sir those have potential. see market is moving sir. not to worry sir. could you please excuse me sir i have lot of calls to make today. no sir nothing to do with credit clearing sir.

anu wrote:mono - Me having 2mn beyond T+5 for the purchase during march goes against your argument that T+5 only brought down the market. If you read the posts, members are not consistent in telling that there is no debt to be cleared. So it is rather opinion than being a concrete evidence!

anu wrote:That's again your opinion mono.

Read this. Not only tubal. There are other members telling about debt clearance:

http://forum.srilankaequity.com/t1894-artificial-day-low-volume-of-trades-still-credit-clearing-left

See, if T+5 was not properly implemented like in my case, whether that alone is enough to cause this much of damage is something arguable. True enough there can be other contributors like stop loss, momentum traders etc contributing to this.