Go to Jeff Salisbury LWGate Home Page.From: "Jerome Buckmelter" <jsjbuck@myexcel.com>
Subject: [CANSLIM] New NASD trading restrictions?
Date: Sat, 15 Mar 2003 21:54:59 -0800
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I recognize that this post does not specifically deal with CANSLIM, but
it could affect a lot of CANSLIM traders if it is true. Ameritrade
Client Services staff, including a supervisor, told me this evening that
a new (as of March 13) NASD interpretation of a Federal Reserve rule
prevents investors from using proceeds from the sale of stock to
purchase new stock until the sale settles. That means three days!! I
spent twenty minutes discussing with the supervisor the lunacy of an
interpretation such as this, but he insisted that it was true. He says
it comes from the NASD, not Ameritrade. That means one cannot be fully
invested - during a bull market, of course - and sell a slower
performing stock in favor of one that is breaking out on the same day.
You will need to wait three days until the sale settled before buying
the break out!! I checked the NASD website and couldn't find any
information on this, which makes me suspicious. I also talked to two
different people at Schwab, and they never heard of this ruling. The
Ameritrade people say that they are already complying with this new
ruling, and that other brokers will need to do the same soon. Has
anyone else heard of this? What can be done? Any suggestions or
comments?
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<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'>I recognize that this post does not specifically deal =
with
CANSLIM, but it could affect a lot of CANSLIM traders if it is true. =
<span
style=3D'mso-spacerun:yes'> </span>Ameritrade Client Services =
staff,
including a supervisor, told me this evening that a new (as of March 13) =
NASD
interpretation of a Federal Reserve rule prevents investors from using =
proceeds
from the sale of stock to purchase new stock until the sale =
settles.<span
style=3D'mso-spacerun:yes'> </span>That means three days!!<span
style=3D'mso-spacerun:yes'> </span>I spent twenty minutes =
discussing with
the supervisor the lunacy of an interpretation such as this, but he =
insisted
that it was true.<span style=3D'mso-spacerun:yes'> </span>He says =
it comes
from the NASD, not Ameritrade.<span style=3D'mso-spacerun:yes'> =
</span>That
means one cannot be fully invested – during a bull market, of =
course –
and sell a slower performing stock in favor of one that is breaking out =
on the
same day.<span style=3D'mso-spacerun:yes'> </span>You will need to =
wait
three days until the sale settled before buying the break out!!<span
style=3D'mso-spacerun:yes'> </span>I checked the NASD website and =
couldn’t
find any information on this, which makes me suspicious.<span
style=3D'mso-spacerun:yes'> </span>I also talked to two different =
people at
Schwab, and they never heard of this ruling.<span
style=3D'mso-spacerun:yes'> </span>The Ameritrade people say that =
they are
already complying with this new ruling, and that other brokers will need =
to do the
same soon.<span style=3D'mso-spacerun:yes'> </span>Has anyone else =
heard of
this?<span style=3D'mso-spacerun:yes'> </span>What can be =
done?<span
style=3D'mso-spacerun:yes'> </span>Any suggestions or =
comments?<span
style=3D'mso-spacerun:yes'> </span><span
style=3D'mso-spacerun:yes'> </span><span
style=3D'mso-spacerun:yes'> </span><span
style=3D'mso-spacerun:yes'> </span><span
style=3D'mso-spacerun:yes'> </span><span
style=3D'mso-spacerun:yes'> </span><o:p></o:p></span></font></p>
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Next Article (by Date): Re: [CANSLIM] New NASD trading restrictions? "Tom Worley"
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