Stock Market: Will imposing the Uptick rule really Stabilize the market?
 

Today's stock market rally was partially due to the implementation of the UPTICK RULE which seeks to brake short selling of stocks. I think the effect will be temporary. It's a nice little psychological bandaid, so to speak. It won't brake the fucked effects of short selling on the general market: http://www.economist.com/displaystor...ry_id=11591349

Not that I'm saying short selling itself is fucked. It has its uses and provides the market with liquidity and efficiency.

what's the Uptick rule?

Doesn't matter long-term.

Short-term it creates more opportunities for long value investors as prices get battered down to cheaper than they would have otherwise. Difficult to know to what extent.

Doesn't matter to me one way or another.

Yeah, I think you're right. It's a temporary psychological boost but at the end of the day, it's all about fundamentals. And fundamentals don't look very good right now until the mortgage mess is cleaned up. The slow down and uncertainty in credit is affecting industrial production/services and this results in a vicious downward cycle.

We had to deal with the uptick rule for years. We had some pretty big crashes in 2001 with it. Not sure it makes a bit of difference.

Yep. It was imposed during the Great Depression, lasted until 2007. Didn't do shit to prevent the 1987 crash and other steep drops. It's announced implementation is like a short-lived sugar high.

Its a start to cleaning up the market, next Credit Default Swaps need to be outlawed again... :pimp