May 9, 2009
I am a main street investor. I would like the uptick rule re-instated as it was originally and would like the SEC to outlaw any ETF's that would circumvent that rule. I would also like the naked short selling rule enforced I have held several stocks in which I was informed that a certain number were naked shorts.
The volatility of the market increased dramatically when the uptick rule was recended in July 2007. I have been trading actively in the market for over 15 years and I know "fear" is a bigger force than "greed". Once massive selling of a stock begins, it is hard to stop. Whereas, buying does not occur with the same speed as panic selling. Also, dramatic reduction of a stock price has greater consequences credit wise than the increase of its price.
I do not believe testing the removal of this rule during a bull market constitutes a good test. I believe it has proved effective over the 70 years it was in place.