The Uptick Rule - Your Thoughts

Discussion in 'Wall St. News' started by tomahawk, Apr 9, 2009.

  1. The Chinese market is also mostly made up of small retail traders, unlike fallstreet where the big money controls the action. The uptick rule was there for a reason to begin with, and of all the times to remove it they do it right as a major global financial meltdown is about to occur. If that doesn't make you stop for a minute and think about corruption then I don't know what would.
     
    #11     Apr 9, 2009
  2. patchie

    patchie


    I believe she used the phrase 'emperical data'. The problem is, she has no emperical data that says it is not either.

    Political pressure, circumstance, what ever you choose. There has been no real study out that looked at the isolated cases and determined the impact on the lack of an uptick rule since it was repealed.
     
    #12     Apr 9, 2009
  3. CET

    CET

    The people that whine about the uptick rule don't know how to trade or can't take advantage of opportunities that the market provides. It is basically a useless topic.
     
    #13     Apr 9, 2009
  4. Having an uptick rule is no problem. The problem is that the big players with money will be able to manipulate the market more and have a bigger advantage compared to the small players.

    Big hedge funds/market makers and others will just have another weapon to skin the daytrader.
     
    #14     Apr 9, 2009
  5. patchie

    patchie

    I don't disagree which is why it is so confusing to see so many short interest funds coming out condeming this move. James Chanos and Richard Baker are already out on a full PR campaign with all sorts of rhetoric about how this single change will impact short selling and market price efficiencies forever. Funny how before last year they had an Uptick rule and they never once complained about it.
     
    #15     Apr 9, 2009
  6. eagle

    eagle

    In a messy complex problem, you need to isolate the suspected issues in order to figure out where the root cause of the problem. However, the way law makers are questioning whether Uptick Rule could have significant weight mean that they still haven't figured out yet what was really the problem that made banks became zombie.

     
    #16     Apr 9, 2009
  7. The sad part about these stupid "law makers" is many of them actually believe the market fell more because of the absence of the no-uptick rule.

    What good did the rule do back in 1987 when the market collapsed *huge* in 1 day?

    It seems the dumb bagholders prefer to bleed a slow agonizing death as opposed to a quick stab!
     
    #17     Apr 9, 2009
  8. gnome

    gnome

    "They" want to vilify repeal of the uptick rule for "contributing mightily" to the decline.

    Fine. Reinstate it. Should install a downtick rule at the same time...

    I don't know for sure, but I suspect "naked shorting" has caused 10X the impact of repealing the uptick rule.
     
    #18     Apr 9, 2009
  9. patchie

    patchie

    They haven't figured it out because they are short the talent to research it. there have been many accusations lobbied but only surface data presented. The SEC hasn't the skills or the desire to do a deep dive into the data to go well below surface information.

    The real emperical data involve trade tickets and verifications. It requires a staff to select certain specific markets and break them down by trade and circumstance. Why did fails rise? To what extent was short selling or market making participating in the slide? Did the short sale initiate a slide or a radical change in the markets or did it follow the markets? To what extend did short sales block out the long sales during the free fall? Unless the SEC understands this they can not say for sure whether they had no impact, little impact, or a major impact.

    The SEC chooses not to run such a study because it is difficult. So instead the SEC manifactures results by looking at a global picture and averaging the numbers out like that is how a market works.
     
    #19     Apr 9, 2009
  10. eagle

    eagle

    Our stock_trader will fiercely oppose. :D

     
    #20     Apr 9, 2009