September 19, 2008
Mr. Christopher Cox says he has effected many changes on short selling recently. But let us not forget that SEC's original plans were to introduce these changes end of September or Mid-October till screams for his ouster got louder and louder He has to take responsibility for the billions of dollars small, honest, hardworking investors have lost trading small cap stocks since he changed the short only on the uptick rule that emboldened shorts and even today you can see the consequences on the one minute daily charts on any stock and the indexes. There are gaps on both the downtrend and uptrend of all stocks and indexes. My explanation is SHORTS HAVE PROGRAMMED SELL ORDERS ON ANY BID PRICE(AND ONLY BID PRICE) SO GAPS OCCUR, for example if the current bid is 10 and the next tick bid is 9.65 the sell on bid program creates the gap, as against sell short only on uptick rule of the depression era. Gaps occur on the uptrend also because of short cover after they have terrified investors into selling and the stock exhausts all sells and stabilises when shorts buy on ask upto a limit price. These gaps will disappear once the short only on uptick rule is restored and the one minute charts will start looking orderly.
How is banning short sales on financial stocks okay when the same financial companies are ALLOWED TO HOLD SHORT POSITIONS ON NON FINANCIAL COMPANIES STRANGLING THE LIFE OUT OF THEM?
True Mr.Cox has finally instituted major temporary changes on short sales recently after investors have lost billions of dollars on small cap stocks with his SHORT WHEREVER, WHENEVER rule after removal of the short only on the uptick rule. So I say Mr. Cox goes.