May 13, 2009
I believe you need to go further in the short selling rules. There are too many loopholes in the system for manipulation in stocks. For example I can buy all the puts I can, then start short selling the stock until it hits my price. Uptick rule may or may not help as I can sell shares I own at a loss to make the calls come into play, until all my puts are covered. Big money can and does this. Same as running it higher with calls. So in addition to the uptick rule, firms or individuals should not allow to trade in both. I see no reason for short selling at all as that is what puts are for. Why create more loopholes or ways to scam the market? Let free markets drive the stocks. Secondly the day trading is not investment. Put a 75% tax on stocks not held for one year. That will stop alot of this nonsense going on. And try to act with a little speed. This action on the uptick rule has taken far too long. The horses are all out of the barn now and your just trying to shut the gate. Great job guys, way to ruin the finacial markets with your slowness. Most people I know have quit the markets and have gotten out entirely. I am thinking of it myself.