So it was just merely a coincidence that when the uptick rule was abolished the VIX began to uptick (pun intended)
.... also, I hate volatility unlike some of you, we all trade different strategies, I'm sure some of you are killing it out there with this volatility.
The nasdaq had no specialists forced to provide liquidity and control hyper volalitity. Also the Nasdaq didn't have the same uptick rule as the nyse. To short stock on the nasd all you had to do was trade a penny in front of the bid this could still be on a downtick. You just couldn't tick the bid to short. After the elimination of bullets I used to use BRUT routing for shorting nyse stocks. Since they used the nasd the nasd rules for shorting applied rather than the nyse it helped a lot in shorting stocks
Drukes, If you go back and look at the date that Portfolio Margin took over Reg T for most professional accounts, I think you'll find a better correlation to the $VIX inflation than the uptick rule repeal. Nasdaq wasn't courting the Philly for the stock business, its the increase in demand for options since Value at Risk margin became so widespread. And as for Jim Cramer, he has a new "axe to grind" this time around. Ratings for his long only viewers. I never hear any mention of Naked Short Sellers...
yes. the vix also upticked a lot well before that. then, the vix went into a prolonged quiet period. periods of low volatility lead to higher volatility, lead back to lower volatility.
Uptick rule for shorting without a down tick rule for buying is at least as dumb as having a "lock limit down" without a "lock limit up" rule. Glad they did away with it - good riddance! Too bad they don't fix the lock limit rule.
All you have to do is look at the charts of these companies and tell me how badly they were mauled in last few months due short sellers and bears raiding the loot wiping out investors and retail public en masse... I mean those vicious sell offs where puts were bought ahead of shorting..completely wild wild West.. GOOG, CROX, SIGM, BIDU, AAPL, DRYS IF we had an uptick rule this wouldn't have happened.
Volatility is one thing, but buying puts and than going in like a cavalry and shorting the stock with repeated blows till its bend down in 1/2 ? I mean its bordering on lawlessness.. Bring back the uptick rule and stablize financial markets, no ifs and buts none..
no actually it had something to do with 200 billion $ of bank write downs on crappy loans tied to subprime losses. and then a crappy economy. The VIX still has not reached its 2002 levels (i thought it was 50+) The reason the sec did a test of about 1/4 of all stocks for 2 years without a uptick rule was when a person like you or cramer came with this concern, they could show you evidence that there was no diffrence between the 1/4 stocks that where shortable on a down tick and all the others
this post is a joke right? you just gave us the highest beta stocks on the nasdaq during a time when the economy went into a recession, and the 4th largest I-bank went bankrupt. There where like 4 posts allready saying how the uptick rule was never an issue shortng nasdaq stocks, arca let you do this in 2005 or today. the uptick rule is only an issue on NYSE If i had money in your hedge fund i'd be pulling it out so qucik based on your market ignorance