The dirty little secret about the up-tick rule: rigging the market

@ 1:52 pm
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The uptick rule is designed to prevent short sellers from jumping nonstop on a declining   stock and driving it to oblivion. It was implemented in 1938 in the aftermath of the the depression and the huge market declines.   Every bear market needs a scapegoat and the public loves to blame the villainous short-sellers for everything that goes wrong.

Short sellers borrow stock from their broker and sell it at the current price, hoping to buy it back at a lower price and returning the borrowed shares to the broker.   Anyone with a margin account signs an agreement to allow the broker to lend out the shares in the account.   In truth, you never know your shares are gone because the short seller has to pay you any dividends that are paid while he has borrowed your shares.

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Market is getting stronger

@ 11:27 pm
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There were 5 new highs and 5 new lows in my universe of 4,000 stocks on Wednesday.   Still, a lot of stocks are getting stronger.   Wednesday was the 16th day of the QQQQ short term up-trend.   Three of the 5 stocks at new highs were on my IBD100 lists:   FDO, FIZZ and SNDA.   My long positions continue to prosper.

QQQQ rally continues, in 14th day and up 8.7%, but 3X emerging bull ETF, EDC, up 28.2%

@ 8:36 pm
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T210884%

There were 11 new highs and 4 new lows in my universe of 4,000 stocks on Monday.   Five of the 11 new highs were on the IBD100 list from March 30:   TNDN, NFLX, GMCR, NTES and CPSI.   All of these but CPSI hit all-time highs, an extraordinary accomplishment, given the market’s decline over the past year.   Any stock trading today at an all-time high is probably worthy of   attention.   I own GMCR and NFLX.   One other stock on the new high list Monday is TSYS, which I wrote about months ago.   It has huge recent earnings increases and has been in a steady up-trend.

I am putting more and more funds back into the market as this up-trend continues. By my indicators, the QQQQ   just completed the 14th day of its short term up-trend.   During that time, the QQQQ has advanced 8.7%, while the ultra long QQQQ ETF, QLD,   has advanced 17.6%.   During QQQQ up-trends I buy QLD.   During this same time period, the emerging markets bull 3X ETF, EDC, has advanced 28.2%.   Those who say the 3X ETF’s are worthless as trading vehicles (as in J. Cramer) should look at these data.