Uptick Rule

Harry Guerrilla · 03-12-09, 04:47 PM

Quote:

Originally Posted by winston53660

There is a rule on day traders b uying and selling. Day traders have to maintain 25 k in their account.

I got ya.

It still doesn't stop something from being oversold though.

oldreliable67 · 03-13-09, 02:57 PM

The so-called "up-tick" rule is a depression-era anachronism, originally put in place to "protect" the market from bear raids from the likes of such Wall St. luminaries as Daniel Drew, Jesse Livermore, and Joseph Kennedy, among others. It was put in place during a time when market regulation/supervision was virtually non-existent, credit for market purposes was cheap and abundant and almost totally unregulated (no Reg U, T, etc). It was, thus, quite easy for individuals or groups to manipulate stock prices either from the long side or the short side. The public was all too often caught in the middle and made to pay unjustly.

Today, market and credit regulations and supervision have significantly reduced, but have not totally eliminated the ability of any group to illegally influence the market. The pools of capital are now just so huge (though not as large as they were 18 months ago!) that a resort to illegal methods is rarely needed-though many boiler-room operations persist with pump-n-dump operations. Even so, the up-tick rule has been shown by a number of academic studies to be counter-productive in today's market place.

One form of short-selling that has retained it's particularly abusive character is known as "naked short-selling." While regulatory practices and controls are in place, for some unknown reason, the SEC et al have proven ineffective at enforcing these rules. Naked short-selling would not be curbed in any significant way by re-imposition of the up-tic rule, though advocates of bringing back the up-tic would have you believe otherwise.

In sum, the up-tic rule is wanted by those who would be financially advantaged by its re-imposition, even though the abolition of the rule clearly contributes to market efficiency. More than the up-tick rule, the market needs to see enforcement of existing short-selling rules/regs.

talloulou · 03-13-09, 04:15 PM

Quote:

Originally Posted by winston53660

CNBC just reported Barney Frank said the uptick rule should be back within a month.

Barney Frank is a moron and all this to do about the uptick rule is much ado about nothing in my opinion. Getting rid of the uptick rule didn't cause the markets to nose dive and reinstating it won't have a huge effect on recovery.

talloulou · 03-13-09, 04:26 PM

Basically anything Barney Frank says should encourage you to think the exact opposite.

YouTube - Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis.

I can't stand that lispy douche. Absence of the uptick Rule didn't cause this and Uptick Rule being reinstated won't do squat to fix it.

winston53660 · 03-13-09, 04:29 PM

Quote:

Originally Posted by talloulou

Barney Frank is a moron and all this to do about the uptick rule is much ado about nothing in my opinion. Getting rid of the uptick rule didn't cause the markets to nose dive and reinstating it won't have a huge effect on recovery.

It would have a minimal effect on driving the market down. If Barney Frank said it or Dick Cheney said it it really does not matter.

talloulou · 03-13-09, 04:37 PM

Quote:

Originally Posted by winston53660

It would have a minimal effect on driving the market down. If Barney Frank said it or Dick Cheney said it it really does not matter.

I'm just annoyed that they are running around over hyping the whole uptick rule issue. They're gonna reinstate it, pretend they've done something overwhelmingly profound, and then get down on their knees and pray it has some psychological effect that makes a smidgen of a difference on the market so they can smugly pat themselves on the back.

Barney Frank is an asshole. The only person who annoys me more is Maxine Walters. Where the hell did she come from and how the hell long is she gonna be around???

Harry Guerrilla · 03-13-09, 06:35 PM

Quote:

Originally Posted by talloulou

I'm just annoyed that they are running around over hyping the whole uptick rule issue. They're gonna reinstate it, pretend they've done something overwhelmingly profound, and then get down on their knees and pray it has some psychological effect that makes a smidgen of a difference on the market so they can smugly pat themselves on the back.

Barney Frank is an asshole. The only person who annoys me more is Maxine Walters. Where the hell did she come from and how the hell long is she gonna be around???

Not only that but they are both some of the most corrupt ass wipes in the whole of the U.S. congress.

I was going to post this article in breaking news but I think its lost on most people.

Waters Helped Bank Whose Stock She Once Owned - WSJ.com

talloulou · 03-13-09, 06:47 PM

Yep, I read about it on Malkin...

Michelle Malkin Culture of corruption: Banking hypocrite Maxine Waters

Harry Guerrilla · 03-13-09, 06:54 PM

Quote:

Originally Posted by talloulou

Yep, I read about it on Malkin...

Michelle Malkin Culture of corruption: Banking hypocrite Maxine Waters

Here's another one with John Stossel. It's short but sweet.

Btw he is on tonight at 10 est about the fallacy of the stimulus

John Stossel : The Fatal Conceit - Townhall.com

talloulou · 03-13-09, 06:54 PM

One of my favorite waters moments....

YouTube - InTheirOwnWords

She's so dumb it's scary. But watch the lady next to her covering up her laughter with her hand.

03-13-09, 02:57 PM	#12
oldreliable67 Guru Join Date: Oct 2005 Last Seen: 12-23-09 01:21 PM Posts: 3,165 Thanks: 219 Thanked 343 Times in 240 Posts Gender: Total Awards: 1	Re: Uptick Rule The so-called "up-tick" rule is a depression-era anachronism, originally put in place to "protect" the market from bear raids from the likes of such Wall St. luminaries as Daniel Drew, Jesse Livermore, and Joseph Kennedy, among others. It was put in place during a time when market regulation/supervision was virtually non-existent, credit for market purposes was cheap and abundant and almost totally unregulated (no Reg U, T, etc). It was, thus, quite easy for individuals or groups to manipulate stock prices either from the long side or the short side. The public was all too often caught in the middle and made to pay unjustly. Today, market and credit regulations and supervision have significantly reduced, but have not totally eliminated the ability of any group to illegally influence the market. The pools of capital are now just so huge (though not as large as they were 18 months ago!) that a resort to illegal methods is rarely needed-though many boiler-room operations persist with pump-n-dump operations. Even so, the up-tick rule has been shown by a number of academic studies to be counter-productive in today's market place. One form of short-selling that has retained it's particularly abusive character is known as "naked short-selling." While regulatory practices and controls are in place, for some unknown reason, the SEC et al have proven ineffective at enforcing these rules. Naked short-selling would not be curbed in any significant way by re-imposition of the up-tic rule, though advocates of bringing back the up-tic would have you believe otherwise. In sum, the up-tic rule is wanted by those who would be financially advantaged by its re-imposition, even though the abolition of the rule clearly contributes to market efficiency. More than the up-tick rule, the market needs to see enforcement of existing short-selling rules/regs.

03-13-09, 04:26 PM	#14
talloulou Banned Join Date: Feb 2006 Last Seen: 03-16-10 10:39 PM Location: Tiamat's better half Posts: 15,998 Thanks: 2,995 Thanked 3,999 Times in 2,587 Posts Lean: Conservative Gender: Total Awards: 2	Re: Uptick Rule Basically anything Barney Frank says should encourage you to think the exact opposite. YouTube - Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis. I can't stand that lispy douche. Absence of the uptick Rule didn't cause this and Uptick Rule being reinstated won't do squat to fix it.
	Last edited by talloulou; 03-13-09 at 04:28 PM.

03-13-09, 06:47 PM	#18
talloulou Banned Join Date: Feb 2006 Last Seen: 03-16-10 10:39 PM Location: Tiamat's better half Posts: 15,998 Thanks: 2,995 Thanked 3,999 Times in 2,587 Posts Lean: Conservative Gender: Total Awards: 2	Re: Uptick Rule Yep, I read about it on Malkin... Michelle Malkin Culture of corruption: Banking hypocrite Maxine Waters

03-13-09, 06:54 PM	#20
talloulou Banned Join Date: Feb 2006 Last Seen: 03-16-10 10:39 PM Location: Tiamat's better half Posts: 15,998 Thanks: 2,995 Thanked 3,999 Times in 2,587 Posts Lean: Conservative Gender: Total Awards: 2	Re: Uptick Rule One of my favorite waters moments.... YouTube - InTheirOwnWords She's so dumb it's scary. But watch the lady next to her covering up her laughter with her hand.

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