March 9, 2009
Why hasn't the uptick rule been restored? Even if it does not stop the selling it will at least slow it down which will help give the little investor a chance. Short sellers are all jumping on the back of this market and prices are being pushed down more than they should be....and the SEC is doing nothing about it.
In addition to reinstating the uptick rule the SEC should create a new rule mandating that short sellers show their positions on a daily basis-
don't eliminate short selling or suspend it just put the uptick rule back in and make short sellers publicly publish on an easy to navigate webpage their short positions daily. Lets not forget that 99% of invested Americans are better off when stocks are stable or rising and when they are falling only a small small % of Americans(short sellers) a benefiting- this is a matter national security.
Take MRK today as an example. The stock is down 10% in premarket- I would be willing to bet that much of this decline is being caused by institutional arbitrage short sellers knocking the teeth out of the stock with out a referee- how is that make for a healthy market??????
If the uptick rule is the SEC's "ace in the hole"- I'd pull it out soon!!
Chris Baratta