Tactical Trading Outlook

The fact is that day trade shorting has a systemic flaw in that the clearinghouse or whomever is in charge of watching a stocks float doesn’t have to track the liquidity of shares traded short vs float available to short until the end of the day, giving some slime bags the ability to sell short naked, more than is humanly possible because the float won’t allow for it.

Therefore, there needs to be a circuit breaker and a real time monitoring system of the total amount shorted vs total float at any given moment for everyone to see. This amount should be published with the quotes so that everyone knows where they stand when they trade a stock. For example there could be the current float 5,617,433,211 vs short interest 1,628,133,080 and that should change real time every time someone goes short or buys back a short.

It is high time that the marketplace became more efficient, transparent and monitored better in real time. I have working knowledge of the fact that something like this could be easily implemented. Let’s face it, wouldn’t you want to know when all of the legal shorting is over so that you could pile in long?

For this to work, the entire float would have to be allowed to be shorted making this an efficient price discovery system as well. Also it would be a boon for brokers who make money in their stock loan department. In addition, this system would stop naked short selling which I believe is just mathematically wrong as there should never be more shares allowed to be traded in one direction and naked shorting allows for that absurd overselling thus allowing manipulation of a stocks price and should not be taken so lightly from regulators. Also loading up stock in a cash account, so that it can not be shorted has the opposite effect of driving a stock price up which is just as manipulative in my opinion. Trade only the float long or short and monitor it real time.

If this wouldn’t work, please explain why? If you think it would work, spread it around before they over regulate everything so that true discovery of pricing will be eliminated by legislation arbitrage.

legislation arbitrage creates a fake market price for all stocks. We all know what happens when falsity becomes reality, it is then only a matter of time until the house of cards collapses in on itself. This system would work fairly and would not allow naked shorting to manipulate, but rather would let the free market discover true price.