34CD77

Options Trader: Friday Outlook

Come on guys and Phillip. To say that it is illegal to make money on a stock going down is rediculous. Sell it and buy it back in the future. Or you are speaking about HF1 and HF2 saying" Lets short at 2:30 1MM shares each. They don't own it or they haven't bothered to borrow it since the SEC doesn"t enforce the rules. This isn't "making money when the stock goes down" this is shear driving the price down. Of course the big money paid whom ever in Washington to do away with the up-tick rule. When are the hedge funds going to have some rules.
Its time.

Options Trader: Friday Outlook

I read with great interest many of these comments, some are by frenzied investors, some by knowlegable investors.
The above comment in Phillips interesting piece about the short sale rule that makes it illegal to make money when stocks go down. The old fashioned way was to sell the stock. When sellers out number buyers, the stock goes down. Then buy it back. Short selling the way it used to be before the extreme amount of cash was paid by the hedge funds to have the up-tick rule done away with. That added to the SEC that refused to make these same groups borrow stock to short , before shorting. Here is my picture. HF A says to HF B ,lets short the hell out of LEH today starting at 2:30. HF A and HF B each short 1MM shares at 2:30. They don't own it nor did they borrow it. !0-15 days later or sooner they buy it back. That is phantom stock. Of corse the reality is that when the public sees it , they panic and the shock goes lower. Each days this is done over and over again. ie LEH 40 to 3 .
The SEC is at fault. They must be replaced.
And in parting, for the government to perhaps spend 500B now is peanuts compared to what the total cost would have been if they hadn't!