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The Stock Room page 28 |
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(Continued from page 27)
NBC sure seemed to want to seriously condemn Anderson for this and called for a ‘HIGHER STANDARD’ of journalism. They even compared it to the Hippocratic oath of, “Do no harm.” Wait a friggen’ moment! NBC is calling for a ‘HIGHER STANDARD’ of journalism? This is coming from an affiliate channel of “The Most DISGRACEFUL Quote of 2011!”
_______________________________________ apppro’s take for 10/01/2011 @09:30 am EST: Epiphany: Base SEC Trading Halts on Volatility Index VIX The other day I wrote about how the SEC was contemplating changing the %’s they use to determine when a stock should be halted to ‘calm things down’ so to speak. As I also said, these stops have really been useless up till now because the amount the stock has to fall in a short period of time is so large it rarely occurs. Also, by the time it does kick in, so much damage has already been done that any temporary halt is meaningless anyway. Most of these halts never even kicked in when the Flash Crash happened in 2010. They also do NOT take into effect the resulting damage done to those WMD ETF’s. The real issue is that when trading insanity gets worse, these swings get exaggerated. What we need is to slow things down even more when volatility as measured by the VIX gets higher. Right now a stock has to decline 10% before a halt is put in. Think about, if Apple declined 10% or $40 in such a short period of time the world would be ending. 10% is a ridiculously high level and doesn’t cut down the volatility or resulting damage. Maybe you can rationalize the 10% during times when things are acting normally. However, when volatility is as HIGH as it has been for the past 6 months 2% - 3% - 4% swings that resulted in a combined 8%-12%-16% total swings over the course of a day, we should all find it UNACCEPTABLE! Anyone remember the 500 point daily swings in the beginning of August?
How did those halts work out for you back then? What we need is to adjust those halts depending on how high or low volatility is at any specific moment. The lower the VIX – the higher the % those halts can be. Conversely, when volatility goes nuts and is at extreme levels, the VIX closed at 43 on Friday, we should substantially LOWER the halt %. This would greatly cut down on violent swings that serve as nothing more than a stage for market and confidence crashes. VIX Level Halt % 15 > 10% 20 > 8% 30 > 6% 35 > 4% 40 > 2% Getting something like this done should be relatively easy. I would prefer much LOWER % levels, but I’ll take what I can get. There are even already individual trading programs that allow people to use volatility to establish flexible trading stops. “Eh, ultimate trader!” If they can do it I’m sure the SEC could figure it out! Personally, I would rather ‘TAX THE CRAP’ out of all these short-term traders/traitors through a capital gains tax of 55% on trades less than 6 months. Even if it doesn’t stop all this gambling we would at least get some much needed tax revenue! We also need the SEC to take a long hard look at the relationship of the publicly traded CBOE and the which the CBOE controls (manipulates). As the VIX goes up > options go up and so does option trading > and so does the profits of the CBOE > and so does the stock price! Whatever the case may be – WE MUST STOP OR AT LEAST LIMIT the market swings of this insane ‘Karate Kid’ market. This is killing us all! What is wrong with all of us? _______________________________________ apppro’s take for 09/30/2011 @07:30 am EST: Technicals… Schmechnicals! “It’s The Mentality Stupid!” I’m sure the point that the writer of this article wants to make is absolutely correct. Dow Theory Dead? Greece Trumps Reliable Stock Signal - CNBC However, the technical disruption that he alludes to is NOT the issue or the point or the cause or even the problem! It all comes back to this insane HFT trader/traitor market that we have allowed a few to inflict upon all of us. It is destroying our desire to promote growth, to invest in our future, to create jobs, to do whatever we have done in the past that enabled us to become greatest nation on this big blue marble. I want to paraphrase a comment that the author made on CNBS for which the video is not available. “Exactly what has happened between 9:30 am and now to cause this 300 point swing?” His own answer to his own question, “NOTHING!” This HFT trading is sucking the very life out of our will to survive. A little bit of an over-kill, maybe so, but how long have I been screaming for someone to “Pull the damn plug on SkyNet before it is too late!”
Wall Street Journal On The Systemic Threat Posed By Quants | ZeroHedge Please don’t forget that we MUST include in this those option traders that are trading short-term gambles as if they are lottery tickets bought at 7-11. All we hear now is how a company’s stock is trading ‘lockstep’ with all other stocks in that sector, and that they are all trading on macro issues. What the ‘flavor of the day’ macro issue is for that brief moment in time only seems to depend on which ETF is being shorted or manipulated at that specific nanosecond by HFT traders/traitors. SkyNet has truly become so adept at this that the gullible media just reports it as a ‘matter of the fact’ occurrence instead of the fact that it is a true “tail wagging the dog” horror. I am not sure why we can’t seem to get the will to stop all this. It’s not helping our nation and does nothing to promote prosperity. I am sick of the arguments that some make to justify this short-term trading. BS! When are we all going to do something about it? When? You don’t want to get rid of it… then ‘TAX THE CRAP’ out of it and make it pay for the damage it is doing! These violent market swings orchestrated by HFT traders/traitors are causing more damage than any Al Qaeda fear. What’s worse is that we really can’t depend on anyone in Washington to fix this, as you will see in this response I got from the SEC: Dear Mr. XXXXXXX: Thank you for your additional communication. The SEC is taking steps to address concerns about market volatility. Please see the following link for one example: http://sec.gov/news/press/2011/2011-190.htm I hope this information is helpful. Sincerely, XXXXX X. XXXXXXXXX Special Counsel U.S. Securities and Exchange Commission (800) 732-0330 They just don’t seem to get it! Like lowering those useless circuit breakers from 10% to 7% would do anything! HFT traders/traitors have that already programed in! Just ‘Clueless in Seattle!’ More than ever do we need Golden Rules #2a & especially #5. The 5 Golden Rules 1. Immediately, reinstate the Up-Tick Rule. 2. Crack down on naked short selling. Require stock certificate #'s when a short sale needs to be covered, including ETF’s. a. Stop shorting of ALL ETF’s. This is just legalized naked shorting—makes no sense. 3. Institute some rules on how the media ’reports’ news in order to prevent rumor-boarding. Not censorship… just sensibility & responsibility. 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund! 5. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. NO pre or after market trading. _______________________________________ apppro’s take for 09/28/2011 @09:30 am EST: “…2.8 months”
This SHORT-term mentality and trading (Not that the person in the video is promoting that at all… quite the opposite!) is NOT the way we should be investing in growth & jobs, and this is certainly NOT the way we should be enabling a few to force us all to live. I may be wrong, but 2.8 months is about the same time that something else needs to be determined. Why we are allowing this financial abortion to continue in our markets and lives is truly an ethical & moral disgrace! We did it to our housing markets! We did it to our banking system! We are doing it to Europe! We are doing it to our own economy! We are allowing a few narcissistic media reporters and psychotic hedge funds to force down our throats this short-term trader/traitor mentality and all we do is sit back and blame government or banks or each other. NEVER the true villains! “IT’S THE MENTALITY STUPID!” and we have all proved just how naďve (stupid) we all have become. STOP THE INSANITY NOW! Revised Tax Rules: 1. Capital gains 5+ years* - 5% tax on capital gains 2. Capital gains 2 > 5 years* - 15% tax on capital gain 3. Capital gains 1 > 2 years* - 35% tax on capital gains 4. Capital gains 6 > 12 months - 45% tax on capital gains 5. Capital gains under <6 months - 55% tax on capital gains 6. Most critical of all — Institute a capital gains tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund. *Anyone whose main source of ‘income’ (retired persons excluded) that comes directly from capital gains, should be taxed at never less than the 1>2 year 35% rate—no matter what the cg term length. The 5 Golden Rules 1. Immediately, reinstate the Up-Tick Rule. 2. Crack down on naked short selling. Require stock certificate #'s when a short sale needs to be covered, including ETF’s. a. Stop shorting of ALL ETF’s. This is just legalized naked shorting—makes no sense. 3. Institute some rules on how the media ’reports’ news in order to prevent rumor-boarding. Not censorship… just sensibility & responsibility. 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund! 5. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. NO pre or after market trading. And in the 2012 elections vote for: _______________________________________ apppro’s take for 09/26/2011 @08:30 am EST:
What the Fed and everyone else should have been doing is NOW hopefully being done!
“Should have declared a war on gold!” _______________________________________ apppro’s take for 09/25/2011 @09:30 am EST: “When the moon is in the Seventh House Age of Aquarius” (Continued on page 29) |
