A Much More Sustainable Equity Market Advance
Goldman Sachs released a great chart in October showing S&P 500 earnings per share against the index's prices. The chart tells a ver...
Goldman Sachs released a great chart in October showing S&P 500 earnings per share against the index's prices. The chart tells a ver...
2 comments:
Would the uptick rule make it harder for falls like today for the last hour?
The rapidity of it, yes. But, the fall itself, no. The uptick rule is just a mechanism to slow the ability to initiate a short position. So, it's just tougher to get into a short. More or less, down movements would just take more time.
Yet, I'm not sure that the fall yesterday was a result of short sellers. I think it was the buyers of the last 2 hours selling. They stepped in believing they had found a reversal bottom and when, on the third attempt, the market couldn't break through the highs of the day, they panicked out of their longs.
I'm biased but I'm against re-instating the uptick rule. I think it hurts the efficiency of the market.
Post a Comment