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TSBTV#40 - Proposed Uptick Rule Implications

TSBTV#40 - Proposed Uptick Rule Implications

I ran across an interesting article on Monday which discussed the proposed modified uptick rule.  Some of the exchanges feel like the old uptick rule would be difficult to reinstate (for reasons explained in the original article), and that therefore a modification would be in order if the uptick rule returns.

I wrote an article over at the trading blog back in 2007 discussing when the uptick rule ended for short selling, and I can’t honestly say I’ve missed it!  In fact, it’s been so easy to short sell that I’m sure many more are participating on the dark side than there used to be.  Remember, all that shorting must be undone with buying, so it isn’t a bad thing.  In fact, it’s just a part of a healthy market.

So here in Episode 40, I’ll explain a little about this proposed rule and talk about what some of the implications are for traders.  There are pro’s and con’s, but personally I’m hoping it doesn’t come to pass.  Futures can be shorted on downticks, so why can’t stocks?

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Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.

Trade like a Bandit!

Jeff White
President, TheStockBandit, Inc. (Premium service) (Trading Blog)

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