Notable Links for Thursday

Jul 17, 2008: 12:42 PM CST

Let’s read a few highlights from around the blog world from short-selling to oil & gold and beyond!

Adam Warner, a former options market maker on the floor, provides a very insightful and thoughtful discussion on the recent short-sell rule changes in his post Short Scream.

Adam writes, “The consequences? Like Mr. Practical says, reduced liquidity as a starter. And how about increased put premiums? Shorting stock gives MM’s ammo to short puts as well, especially when they already own calls against the short stock.

Higher puts of course translate to higher volatility. Which on the margins will creep into the volatility of the stock itself. And that will be the ultimate outcome.”

Rob Hanna of Quantifiable Edges has some insightful research in his post Will The Bounce Continue? which details what happens when the NASDAQ hits a 50 day low and then bounces 3% the next day.  It’s happened 28 times – did he find an edge?

Furthermore, Rob tests What Happens After Gaps Up Fail, which is a subject very near to me in studying gap trading analysis.  He has some excellent research – also check out his subscription based “Quantifiable Edges” Subscriber letter which is released each Sunday evening and contains various in-depth analysis from his current research (that so far I haven’t been able to find anywhere else).

Adam Hewison of Market Club recently released two short educational videos on gold and crude oil worth a quick look.  Hewison discusses key chart points on gold in his video “Has Gold Topped Out?” and then discusses key levels and long term charts in his inquisitive video “Is the Move for Crude Oil Over?

Hewison writes, “I have prepared a short video on crude oil to show you why we feel it is on the defensive and why we should see some lower to sideways action in the near-term

In the video I will show you precise points where I think crude oil will find natural support before resuming its upward trend.”

Barry Ritholtz provides a must-read commentary entitled The Psychology of Selling which details why we commit psychological errors in pricing and refuse to accept the inevitable.

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