July 29, 2010
The SEC should be regulating Short Selling and Market Manipulation by Hedgefunds, ETF's, and Large Traders. The new Weekly Options on AAPL have made Price Manipulation even easier than it was before. The Short Sellers won't even bother with making a show of borrowing stock for a One Week or less Bear Attack. When thses Options were announced, Apple experienced a large outflow -40 Million Share Plus Sold in one day - because the Mutual funds knew what would happen. Smaller investors thought a Blow Out Earnings Quarter and an Upgrade to $400 by JP MOrgan would keep the stock up were sadly mostaken. Your Hedgefunds are rolling now. No Up-Tick Rule, No Hard Borrow, No Oversight, and cheaper Weekly Options to work with makes it like shooting fish in a barrel. Investment will be over if you don't act. These Firms are all Traders, not Investors. Your Famous Circuit Breaker got used today with CSCO, and wouldn't you knaow it was on a Price Increase, not a decrease. Protects the Shorts I guess. Investor Protection is non-existent right now. The big firms are profit protected by the Comission that is supposed to regulate them. Cap Leverage and provide a real up-tick rule.