SEC suspends uptick rule according to JJC on TSC.---My take is that this will be bad for volume at the option exchanges.
Starting Monday, you could see some real nasty
things happen to companies that mess up. You will
see them banged down harder and faster than you
would ever believe.
The corollary is true, too, though. You will see
some real squeezes upward because people will be
much more reckless in what they short and when.
This rule change, of course, couldn't come at a
worse time. The market's terrible. Longs are
beleaguered, shorts are emboldened. I think it is
fair to say that things are about to get a lot
worse, a lot faster for the stocks of bad
companies without the slowdown circuit breaker of
the uptick rule. But the SEC, in its non-infinite
wisdom, dreamed this little doozy up and all I can
tell you is that you ain't seen nothing yet.