So seeing a huge resizing offer that steps down a penny in front of whatever the low tick is won't cause panic? Anyone ever notice that when news comes out, those crazy market buy/market sell programs are actually by and large ADDING liquidity? For the record I post more than I take.
Agreed 100% As usual, yet another Bush appointee ( SEC Chairman Christopher Cox ) is asleep at the wheel. When you see a market plunge 200 points in the last 7 minutes of a trading session because shorts and Ultra Pro Bear ETF Funds are simply machine-gunning down the bids, people are unable to "process" the market data that they are seeing before their eyes. Why Cox doesn't realize this is absolutely beyond me . . . He should go back to the OC and never be heard from again. He has not defended capitalism.
We can see from this thread who's lost money on long positions. Shouldn't have an uptick rule for shorting without having a similar downtick rule for buying.
This volatility has nothing to do with manipulators, its what happens in bear markets. Please provide empirical evidence that it's the shorts causing this sell off and not longs getting out of their positions. It would also help your case to provide fundamental evidence to support higher prices. Maybe the shorts are right and any rise in price at this moment is unjustified... -Neo
I strongly disagree. You are failing to make an important distinction between volatility and VELOCITY. Even given the bear market environment that we are currently in, the market has NEVER historically displayed the kind of VELOCITY and speed at which prices are being printed . . . even in the modern electronic era. That's my point.
That might be so, but that does not mean anyone has proven a correlation between the uptick rule and velocity. People are coming to a conclusion without PROVING cause and effect. Just because some one says it is so, does not make it so. If science used the same thought process we would still believe that the sun revolves around the earth. Either way, no one has proven that removing the uptick rule has caused nor increased volatility. -Neo
I've been trading everyday during this entire decline and I only trade equities. I'm just speaking from experience based on what I have seen. Rumors by themselves did not cause the declines but contributed to it. No uptick rule was tested for some time before being implemented, but it was NOT tested in volatile times where fear prevails. No ONE thing caused the declines. Here is the formula: (NO UPTICK RULE + NAKED SHORTING + RUMORS) x FEAR = 50% decline in 15 minutes. Defending getting rid of the uptick rule is like defending naked shorting or spreading rumors.