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Reinstating the uptick rule

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Gordon Gekko

Gordon Gekko

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HI All,

I was just wondering what your thoughts are on the SEC plan to reinstate the uptick rule? For those not familiar with the uptick rule see link.

"On July 6, 2007, the day the uptick rule was repealed, the Dow Jones Industrial Average stood at 13,611, just three months away from its all-time high of 14,198. The timing of the repeal was absolutely perfect. Repeal of the uptick rule sent a clear signal to anyone paying attention that the party was now over and it was time to establish a short position to be sure of benefiting from the market's coming drop."


www.naturalnews.com/025003.html

They will meet tomorrow and should have it back up by the end of the month.

www.ft.com/cms/s/0/89779be2-2242-11de-8380-00144feabdc0.html

This should I believe resume confidence to the markets by lowering volatility. Short selling has a part to play in normal market function but hedge funds have been manipulating the markets for far too long.

my:2twocents

G
 
Hi, I don't think that they should remove it. It is meant to be a free market and represent the sum total of the psychology/wisdom/stuptidy of all that is in it.

I would think that if they bring this rule in there should be a down tick when ever someone wants to buy a share. Of course that would never happen though.

:2twocents Wonder
 
im not familiar with the rule, but couldnt you just,

buy 1 share, -- enforce an uptick

then,

short 1,000,000 shares.
 
beerwm said:
im not familiar with the rule, but couldnt you just,

buy 1 share, -- enforce an uptick

then,

short 1,000,000 shares.
Click to expand...

Not really - exchange rules prohibit this sort of 'manipulation'.
 
What happens if there are multiple orders to short sell XXX at price $40.00, when the last price was $39.98. Does that mean the price has to drop back to $39.98 (or under $40.00) for each short sell order to be executed at the price of $40.00?

Or, does it mean that every short sell order at the price of $40.00 benefits from the one single uptick from any price under $40.00?
 
Gordon Gekko said:
This should I believe resume confidence to the markets by lowering volatility. Short selling has a part to play in normal market function but hedge funds have been manipulating the markets for far too long.
Click to expand...

Oh!! too funny.

Yes watch the banks balance sheets spring back from the dead once those bloody evil manipulators have to sell on the ask instead of the bid.
 
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