Given today's information released by Countrywide is it still worth shorting the stock?
Answers: I wouldn't touch Countrywide either way. There has been too much movement and too much volume to get in on it now. If you short Countrywide at this point, you're shorting the US home loan industry. Too much of a move for me.
Jim Cramer stated that if Ben Bernanke were to resign, the market would shoot up 1500 points. Do you agree?
Answers: of course not lol
i think what he meant is that if Bernanke wasn't chairman in the first place we would have 1500 point more above where we are right now.
Stock market is not Fed's priority the economy and inflation are
No. Ben Bernanke didn't cause the housing crisis. The fed has helped the stock market recently by lowering the federal funds rate. Don't listen to Cramer. Go to this website
www.cramerwatch.org.
It compares Cramer's stock picks with those of a coin flipping monkey.
Cramer, as usual is all hype. It is a TV show designed to get people to watch it, NOT to give you good advice. He says he is trying to make you rich, but consider this, if he had to decided between making one viewer rich and having his ratings go through the roof which do you think he would choose? Up by 1500 points would never happen for an event like that, after all what if his replacement was worse?
Doesn't somebody shut down trading on a stock when the price drops too far in a day? What is this called?
Answers: Some exchanges have a "circuit breaker" rule that trips when the market falls too much percentage-wise in a short period of time. When the circuit breaker is tripped, all trading is halted.
For a specific stock, a "trading halt" (usually temporary) may be issued when major news for that stock is about the break - to give everyone equal opportunity to consume the news. A trading halt may also be in effect if there's a great imbalance between sellers and buyers - i.e. there's only sellers but no buyers.
The term you might be referring to is called limit down, but is used to limit the downside of a commodity trading on a futures exchange, and not a stock trading on any exchange.
A company will from time to time ask the exchange to halt their stock to issue a press release commenting on any rumours in the marketplace. After that, trading usually resumes, but a stock is not shut down when it's price drops too far.
They don't usually shut down trading of a single stock for dropping in price too much. They might shut down trading of the stock for a while if they are about to make a big announcement though. I think that they halted trading for the Dow about a month ago in its last minutes of trading because it was dropping too much.