Uptick is coming back.. shorts are covering today..

[Damocles]

Tell me about it. Obviously Obama signing the Omnibus Budget Bill is causing this rally.

I think it was his strategic signing statement that basically said that 5 of the provisions were "not binding" and wouldn't be implemented by the WH at all.

Yeah. Got a page from GWB and we all know how much the markets like that.

 

[Topspin]

Tell me about it. Obviously Obama signing the Omnibus Budget Bill is causing this rally.

What in the bill do you think is so good for the Market?

 

[Annie]

What in the bill do you think is so good for the Market?

I'm glad they are up, hope it continues:

http://news.yahoo.com/s/ap/20090313/ap_on_bi_ge/world_markets

Global stock rally continues ahead of G-20 summit

By PAN PYLAS, AP Business Writer
55 mins ago
LONDON – The rally in world stock markets continued Friday as confidence remained buoyed by some signs of a stabilization in U.S. consumer spending and hopes of fresh stimulus packages in China and Japan.

Positive comments from Bank of America Corp.'s chief executive Ken Lewis also helped sustain the market optimism that was stoked earlier this week by buoyant comments from Citigroup Inc.'s CEO Vikram Pandit.

The FTSE 100 index of leading British shares was up 62.70 points, or 1.7 percent, at 3,774.76, while Germany's DAX rose 36.85 points, or 0.9 percent, to 3,993.07. France's CAC-40 was up 42.72 points, or 1.6 percent, to 2,736.97.

Earlier in Asia, Japan's Nikkei 225 stock average jumped 371.03 points, or 5.2 percent, to 7,569.28, and Hong Kong's Hang Seng climbed 524.27 points, or 4.4 percent, to 12,525.80.

Markets have responded positively to a raft of fairly good news this week, not least Thursday's U.S. retail sales data, which were not as bad as feared despite massive increases in the number of unemployed.

"In a world where we have all learned to fear and forecast the worst, a glimmer of good news is all it takes to change the mood," said Kit Juckes, head of credit research and market strategy at Royal Bank of Scotland.
Earlier comments from Chinese Premier Wen Jiabao and Japan's Prime Minister Taro Aso — that their governments stood ready to roll out even more measures if needed to reinvigorate growth — sustained the rally into the Asia session....

 

[Chapdog]

We see what happens today.. ALL i know from my perspective are that big institutions (mainly hedgies) are lowering short interest which is helping to propel the stock prices up where the interest was unusually high. This is happening because of anticipation of the April SEC rules overhaul and has very little to do with any of the daily headlines. If im right we keep moving up possibly another 1000 points within 15-20days.

 

[uscitizen]

We see what happens today.. ALL i know from my perspective are that big institutions (mainly hedgies) are lowering short interest which is helping to propel the stock prices up where the interest was unusually high. This is happening because of anticipation of the April SEC rules overhaul and has very little to do with any of the daily headlines. If im right we keep moving up possibly another 1000 points within 15-20days.

There is always a first time for everything.

 

[TRGLDTE]

they need to give time to the shorts to change there game. Otherwise would be a whole lot of hedge and brokerage houses going belly up overnight. lol could u imagine a surprise change to the rule.. Would be the short squeeze to end all short squeezes.

I don't see how the uptick rule would squeeze the shorts already in place. Covering shorts is a buying action and the uptick rule does not affect buying. Please explain.

 

[Chapdog]

I don't see how the uptick rule would squeeze the shorts already in place. Covering shorts is a buying action and the uptick rule does not affect buying. Please explain.

because of the lax rules the short interest has become upwards of +20% in some stocks. This is because there is much less risk that utilizing naked shoring large hedge funds can keep a stock price headed south to make money on shorting in the form of bear raids.

Now that the threat of April rule changes there is the need to lower the short interest from the 20% plus. This in turn as you state above is a positive movement for stocks.