it hardly seems possible that the passing of the uptick rule has not been reported in the financial press. please post any links to the general press eg. bloomerg, ft , ap or newspapers. i repeat my prediction. after the next sharp downturn in the market short selling will be banned altogether.
I haven't read in depth why they are getting rid of the uptick rule, but I imagine that it no longer serves a purpose. If anything, it has served as a hindrance to price discovery. Good riddance.
Yeah, I didn't even know about till tonight, I was sleepwalking today anyhow after the holiday. Starting on my 5th million Monday.
Totally bogus. If anything , this will cause random shorters to form a base under the market. Easy to tear em a new one.
I make a living trading natural gas, a true zero sum game. So at any given moment half of the market is short the other long. I read that the equities are net short like 5% or something and people think this makes it so vulnerable to tear these guys new ones. The way I see it is that 95% of the market is vulnerable to the next wave down. Where does the risk of a major loss of capital lie, with 5% of short sellers or 95% of length holders. This is why you see bear markets/corrections demolish in very short timeframes what takes long periods to gain.
I suggest you short something crowded, then let me know how you do. If the 'market' is going to collapse , then nothing... shorts, longs, or the price of tea in Taiwan matters.
I believe this SEC rule change will create a little more volatility in the markets. This will be good for market participants who trade both long and short and slightly more difficult for market participants who only trade long. For myself, I like it because I believe there shouldn't be any kind of restrictions that effect the market from moving in either direction.