April 27, 2009
The uptick rule must be restored and in place always, not after some arbitrary decline %.There must also be some limitation on what number of shares can be sold short post an upticked volume trade.We have all seen the result of the uptick tule being removed, and any who don't realize the profoundly negative impact on market and individual account values is either blind, or in the employ of the big $$ who have profited by overwelming stock specialists and forcing trends to their liking, playing off loss psychology all the way. The 'study' that used the Wilshire index? a joke pure and simple to anyone in the business actually trying to do best for real people clients.We all knew where this would go, and the SEC was where ? The rule change is not the only culprit however. The fundamental flaw is also that ETFs can be shorted. Being allowed to short stocks and the ETFs that hold them is absolute manipulation, and creates the vicious circle that causes such huge declines. ETFs are very much a mutual fund, and mutual funds cannot be shorted, can they ? and for the reason just noted.
Here is the gist. The market has to work for all, both little amounts of $$ and very large $$, or many will stop investing new money, as I have.I've seen my account value cratered.We have to start having a climate that rewards long term investing, not short term volatility.If the average person loses faith in US equity markets, then the global market will follow, and and that hurts all more than stopping small groups of BIG $$ continue to do the damage of the last 17 months, who seem to be adopting a lower profile lately with this discussion happening. SHUT them down, for all's sake and bring back a real uptick rule.