SEC cracks down on shorts; but does nothing to curb the hype

7:15 Wednesday — The Wall Street Journal has a story today, which will likely be the talk of the street, concerning the SEC warning they are going to crack down on improper short-selling of 17 financial firms. The list includes names we all know, including Lehman Brothers Holdings Inc., Merrill Lynch & Co., Morgan Stanley, Goldman’s, as well as Fannie Mae and Freddie Mac. The plan starts Monday and will only last for 30 days.
I personally hail this plan; however, I think it’s a bit lopsided. It will basically crack down on those shorting stocks, who tend to talk down a stock — while it doesn’t do a thing about the CEOs and longs who sing a stock’s praises. I know when I’m deciding whether to pull a trigger on a stock, after taking a careful look at the fundamentals, I also listen and read what both sides are saying — as the truth can usually be found somewhere in the middle.
In other news, the futures aren’t looking so rosy this morning.
On my due diligence list today are symbols that are taking a little beating now, but might be potential good long plays in wind, such as TRN, OC and OTTR.
Just remember my strict requirements for reading this forum — don’t base any of your investment decisions on anything you read in my little blog — do your own due diligence, or hire a professional to do it for you.

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