April 29, 2009
You MUST reinstate the uptick rule that was in place. The Bears have been in charge for over a year now, causing fear and panic everywhere they go. Without the uptick rule they have been able to endlessly knock down stocks. They are behind the demise of Bear Sterns without a doubt. They have Citigroup and Bank of America CONSTANTLY under pressure. Bank of America is in a different league than Citi, but you can't tell the difference after endless short selling. Look at the short interest in many of the stocks. Do you really think that all these shorts have located the stocks before they shorted them? The reality is that people are breaking the rules of short selling. It is a valid position in the market, but positions should have some sort of duration to them so that the market has more investing and less day trading. Even trades over a period of days or weeks wouldn't be nearly as detrimental as the rapidly changing price action we have seen day after day.
Speaking about taking a postion, long or short. These leveraged ETFs AVOID MARGIN RULES. They are cheating and they RESET EVERY DAY. They are NOT taking a short or long position, they are day trading, every day. Take a look at what the fund claims to do and then track it's performance. Say a fund that is short oil...it should be up HUGE because oil has been hammered, no such luck. Take a fund that is short financials, same thing...NOTHING. If you look at the XLF, it's down 20% in the last 6 months. That should mean that a short ETF would be UP 20%, just the opposite of the XLF. Guess what, over the same period the XKF is DOWN 60% That's nuts, and that should be ILLEGAL People depend on these products to do what they say, no collect assets and fees and lie through their teeth. Not only does it NOT do what it claims, but it is causing financial havock of the underlying stocks without accomplishing it's goals. Please ban these products and do you job over there. All leveraged ETFs need to be evaluated to see if they really accomplish what they claim. Please protect the right people, the average investors of the world, not the companies that pay filing fees.