Tuesday, March 10, 2009

US Stocks Hold Gains As `Uptick Rule` Could Be Reintroduced

You heard it here first.
(unfortunately, it was Feb. 25 and the S&P was at 752)
From MarketWatch:
Optimistic comments from U.S. Federal Reserve Chairman Ben Bernanke and news that Citigroup was profitable in the first two months this year helped banks spearhead a broad rally Tuesday, sending the Dow Jones Industrial Average up more 300 points.
"This kind of broad-based move is encouraging, but the question becomes will it be sustained? At this point, it certainly feels that way," said Gordon Charlop, managing director at Rosenblatt Securities.
Traders also pointed to comments from Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who said he expects the "uptick rule" - used to require investors to wait until a company's stock rises before it could be sold short - to be restored within about one month.
If reintroduced, the rule will serve as a stabilizer of the market "because people can't pile on a stock all at once," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. Still, the rule isn't going to prevent failing companies from going down under, Rovelli noted....MORE
Oh well, we had Sly & the Family Stone doing "I Want to Take You Higher", live, at Woodstock.