Uptick Rule Could “Save” Sirius Nasdaq : SIRI
The commenting period for the uptick rule ended June 19, which means we will see action very soon after. If this happens, there could be severe restrictions on short sellers, meaning the market will climb. Short selling is very important for a healthy stock market, we saw how out of hand it got in china when it was not allowed. These proceedings will not take away short selling, but limit the damage that can be done to a stock and the markets by short selling. Which is just what this bear market needs.
This is very big news for Sirius XM Satellite Radio (NASDAQ: SIRI) SIRI has been trounced by shorts for a long time. The impending proceedings will provide fresh air to this market, and potentially save it single handily.Small stocks like SIRI really need rules like this to be in place. Stocks that are heavily shorted will see a quick bounce if these rules go through, the rest of the market will catch up soon after.
“As discussed in detail below, concurrent with the development of the subprime mortgage crisis and credit crisis in 2007, market volatility, including steep price declines, particularly in the stocks of certain financial services issuers, has increased markedly in the U.S and in every major stock market around the world (including markets that continued to operate under short sale price test restrictions). As market conditions have continued to worsen, investor confidence has eroded, and the Commission has received requests from many commenters to consider imposing restrictions with respect to short selling, in part in the belief that such action would help restore investor confidence.
Due to the extreme market conditions that we are currently facing and the resulting deterioration in investor confidence, we believe it is appropriate at this time to re-examine and seek comment on whether to restore restrictions with respect to short selling.”
*Sirius ( Nasdaq: SIRI ) was up at .35 the time of writing. The writer is Long on SIRI, averaged down to .28.