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Fri, 29 Apr 2005
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.
Posted 06:25

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