April 28, 2009
Look @ what happened today in DNDN today....a breakout cancer treatment announcement was to be announced and just before announcement the stock falls to 12 a share from 25 a share,only to be suspended from trading by the NASDQ, which 3 hours later opens after hours back @ 25 a share.
Like I said a red neck tired to getting screwed by lack of enforcement by the SEC.
OK lets get to naked shorting, fails to deliver, and no uptick rule, all designed to screw the retail investor, not to mention that just about all mutual funds loan out "our" stocks, for a fee, to hedge funds, and not to mention all stocks are held in stree name, again a scam to screw the retail investor, just so they can be loaned out "our shares" for a fee, to hold the price down on "my shares" and the funds get to keep the fees. Why don't "I" get the fees, they are "my" shares they are loaning out.
When the SEC first instituted the naked short rules, and uptick rules in 1937, here again, about 5 years too late, the common spreads between bid and ask prices were 1/4 and 1/8 and 1/2.....or .125,.25 and even higher. With the advent of electronic trading common spreads on actively traded stocks, are 1 cent. How ludicrous to think that any uptick will impede shorters from "walking ...i.e. stampeding a stock down." In not every phase of life do we not learn it is easier to tear down than to build up. So too, does this concept hold more true in the building up of a share price.
The SEC must give the uptick rule teeth as in "TEETH".
I propose not to even consider imposing a limit down 10% before any rules are imposed. This amounts to no rule at all
I have said all along that only a graduated "step down" will work. I propose a 5 cent uptick for stocks under a certain price such as $10, then a greater uptick for stocks under $20 such as 10 cents all the way up to an uptick of $1 for stocks over $100.
Either this or a set % of the last trade...the uptick mandates that a proposal with "teeth" be demanded. These are extraordinary times and demand extraordinary measures.
Look at it this way, a greater uptick will ensure that eventually when a short position is taken at the higher price the short position will be more profitable, not less profitable should the stock price eventually fall.
With respect to naked short sellers, this should be a criminal offense, similar to many of the oriental markets. Let us learn from China, Japan, and Hong Kong, India, and Singapore. Why do you believe that there is as much confidence in these markets as there is. Investors are tired of getting screwed on Wall Street around the world, this red neck is and I assure you that the capital flow from my double wide will be flowing overseas in the years ahead.
If there is one agency that I believe must bear the brunt to this crisis in confidence it is the SEC, and especially Chris Cox the former commissioner. Put bluntly, what the hell have you people been doing and what the hell have you been thinking.
Bring back the uptick rule , give it teeth like my pit bull, and make it mean and angry. Stop naked shorters and put them behind bars where they belong, and start enforcement. What are we baby boomers supposed to retire on: we are victims of "financial terrorists"...who make Bin Laden pale by comparrison and the SEC is directly responsible.
Signed: A nobody red'neck from southwest Virginia...