Before (~50), Scottrade would indicate that there were not enough shares to short. It would tell you "only 5 shares available for shorting" or "0 shares avaliable for shorting." Today, it says "Unable to enter the order because shares of the symbol entered are not currently available for shorting." It has said that all trading day. Either they changed the syntax of the message or this is a blanket message they send when they suspend the capability of shorting a particular stock. Either way, that may be why the stock price hasn't fallen further.
Why would you want to short AIG, it is a teflon stock? Three downgrades, two with a target of 10 and 15 respectively, the third downgrade today, but I don't know the lowered target price. Odd, today's downgrade isn't even in the yahoo news for AIG? However, Barron's states the truth and said AIG has a negative $7 tangible value.
Sure AIG is trading about 300% higher than its lowered target, but the whole market is accepting this of many stocks and the Fed/Treasury encourages it!
Simple put, there is way too much cash sloshing around in the stock market, so traders are buying junk stocks. When bernake was challenged if an asset bubble was a sign of excess cash, he says it doesn’t count as inflation.
At this point is AIG STILL a systemic risk? If not dissolve it and give the taxpayers their money back. No one is even discussing this? Too much politics and not enough pragmatism.
Other than Obama that called the exact bottom in the market (when he said it may be a good time to buy stocks), no one really knows the absolute bottom or top. However, there are new ETFs that are purely based on MOMENTUM. The founder said these ETFs do not consider fundamentals, PE analysis, sales or revenues, just the upward movement of any stock. So is this a sign of an extended rally or a market top?
So what does this tell you? Many more shorts want in but can't6 get in cause no more shares left to short. So if new shorters are out of the picture, could one conclude that the reason it is moving down today is because long are throwing in the towel and selling? If so, why?