Go to Jeff Salisbury LWGate Home Page.From: "Edward W. Gjertsen II" <ed@macktracks.com>
Subject: RE: [CANSLIM] Shorting
Date: Thu, 29 Aug 2002 09:39:46 -0500
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Ian - the uptick, zero tick rule prevented you from going short. If the
stock traded 29.25, 29.25, 29.30 you would have been able to short -
where you get filled is another issue - could have been 29.25 or 29.30.
Now if 29.30's trade after the 29.30 print - you would still be able to
short since this was a zero tick after an up tick. Shorting is
generally done into strength (not emotionally easy) not weakness. This
is why many shorter term traders stick to the ETF's - no uptick rule and
for the most part, lots of liquidity. I believe this is off the subject
list so if you have further trading issues I can respond privately.
Ed Gjertsen II
ed@macktracks.com
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Ian
Sent: Wednesday, August 28, 2002 10:50 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Shorting
About 10 days ago, I put in a short sale order on a stock at market when
I was getting a quote of $29.25 bid X $29.30 ask. I saw several trades
go by at $29.25 after my order was entered - so I assumed I was filled
at that price. But they dropped the price to fill me at $29. There were
definitely no ticks below my fill price.
I have seen this kind of thing happen a few times too.
These kind of personal observations are why I assumed that there was no
uptick rule on the NAZ (I've never seen this happen on the NYSE).
Ian
- ----- Original Message -----
From: Edward W. Gjertsen II <mailto:ed@macktracks.com>
To: canslim@lists.xmission.com
Sent: Wednesday, August 28, 2002 6:59 AM
Subject: [CANSLIM] Shorting
The rule for shorting: NYSE, NASDAQ, AMEX - you can only short on an
uptick or zero tick. The only issues you can short without this rule
are the popular ETF's - QQQ, SPY, DIA, et al. This rule was
implemented in 1938 to prevent "bear raids" from occurring.
Ed Gjertsen II
ed@macktracks.com
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<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>Ian – the uptick, zero tick =
rule
prevented you from going short. If the stock traded 29.25, 29.25, =
29.30
you would have been able to short – where you get filled is =
another issue
– could have been 29.25 or 29.30. Now if 29.30’s trade =
after
the 29.30 print – you would still be able to short since this was =
a zero
tick after an up tick. Shorting is generally done into strength =
(not
emotionally easy) not weakness. This is why many shorter term =
traders stick
to the ETF’s – no uptick rule and for the most part, lots of
liquidity. I believe this is off the subject list so if you have =
further
trading issues I can respond privately.</span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'> </span></font></p>
<div>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>Ed Gjertsen II</span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dblue face=3D"Times New =
Roman"><span
style=3D'font-size:10.0pt;color:blue'>ed@macktracks.com</span></font></p>=
</div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b> =
owner-</span></font><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'>canslim@lists.xmission.com<=
/span></font><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'>
[mailto:owner-</span></font><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
=
10.0pt;font-family:Tahoma'>canslim@lists.xmission.com</span></font><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'>] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Ian<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Wednesday, August =
28, 2002
10:50 PM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> </span></font><font =
size=3D2
face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'>canslim@lists.xmission.com<=
/span></font><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
Shorting</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3D"Times New Roman"><span
style=3D'font-size:10.0pt'>About 10 days ago, I put in a short sale =
order on a
stock at market when I was getting a quote of $29.25 bid X $29.30 ask. I =
saw
several trades go by at $29.25 after my order was entered - so I assumed =
I was
filled at that price. But they dropped the price to fill me at $29. =
There were
definitely no ticks below my fill price.</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3D"Times New Roman"><span
style=3D'font-size:10.0pt'>I have seen this kind of thing happen a few =
times too.</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3D"Times New Roman"><span
style=3D'font-size:10.0pt'>These kind of personal observations are why I =
assumed
that there was no uptick rule on the NAZ (I've never seen this happen on =
the
NYSE).</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3D"Times New Roman"><span
style=3D'font-size:10.0pt'>Ian</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<blockquote style=3D'border:none;border-left:solid black =
1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'=
>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- ----- </span></font></p>
</div>
<div style=3D'font-color:black'>
<p class=3DMsoNormal =
style=3D'margin-left:.5in;background:#E4E4E4'><b><font size=3D2
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>From:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:ed@macktracks.com" title=3D"ed@macktracks.com">Edward W. =
Gjertsen II</a>
</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">canslim@lists.xmission.com</a>
</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Wednesday,
August 28, 2002 6:59 AM</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> [CANSLIM]
Shorting</span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> </span></font></p>
</div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue
face=3D"Times New Roman"><span style=3D'font-size:10.0pt;color:blue'>The =
rule for
shorting: NYSE, NASDAQ, AMEX – you can only short on an uptick or =
zero
tick. The only issues you can short without this rule are the =
popular ETF’s
– QQQ, SPY, DIA, et al. This rule was implemented in =
1938 to
prevent “bear raids” from occurring. =
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue
face=3D"Times New Roman"><span =
style=3D'font-size:10.0pt;color:blue'> </span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue
face=3D"Times New Roman"><span style=3D'font-size:10.0pt;color:blue'>Ed =
Gjertsen II</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
color=3Dblue
face=3D"Times New Roman"><span style=3D'font-size:12.0pt;color:blue'><a
href=3D"mailto:ed@macktracks.com">ed@macktracks.com</a></span></font></p>=
</div>
</blockquote>
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