Subject: File No. S7-08-08
From: shawn patrick brandom

March 17, 2008

In a market like today, any financial is subject to tremendous volatility. Remember bigger players can call a 'desk', ie market maker center, and get a look at where you are. They'll tell you, 'seller of 20,000 right above here', or, 'stops are just below the lows of the day", things like that. So, it's very easy, like to day to start rumors questioning the solvency of MF Global, which had a big problem last week. You get short, start the rumor, and then beat the hell out of the bid because:

1: There is no uptick rule. You can short into the bid with no restriction
2: Most of the time, the locates are fake, so, you can sell whatever size you want.

Now, this makes it easy for a small trader to get my shorts off - let me rephrase that so ChaChi doesn't get the wrong idea - it's very easy for me to trade on the short side. But these operators know if they break particular price points, the stocks absolutely crater. If you go back to the previous post, look at the charts, you'll see what I mean. It's a license to steal, and they do.

It is almost impossible for a little guy to 'buy and hold' and the pundits say. They have scammed the system to the point where it's no place for an honest man. I winced when Patrick first said it, but he's right. This is an extremlely difficult environment.

We need to ask two questions. Why did the SEC allow this rule to be repealed,and still allow naked shorting. and 2. Why do they not immediately repeal it and save the markets from this volatility?

I find myself trading more into these huge gaps looking for a few points because I have to protect myself. The SEC is a total disgrace, and at the least, they shouldn't be allowed to use the "Investors' Advocate" slogan.