@CNBC @WSJ @MONEY @Forbes Models have real value in decision making, showing trends & changes, but let the science, your knowledge, inform your assessments and guide judgement. @steveliesman @MelissaLeeCNBC Make decisions based on rational processes not emotion, not panic.
Volatility became a market problem again in 2007 after Chris Cox revoked the old “uptick rule”put in place by FDR asJoeKennedySr said to prevent stock market from collapsing as in ‘29. Ask @jimcramer abt that story.
There are mathematical reasons to need a braking mechanism. Without it, acceleration in a downward direction can cause a stock price to collapse. I agree with Cooperman’s view. The uptick rule prevented stock market crashes for 70+ years. The individual “circuit breakers” don’t.
So there were 2 year studies before eliminating uptick rule, but clinical trials for new remedies for human health require multiple trials of well established protocol. Our economy & market health are just as important and should Not have been changed so cavalierly. @CNBC
Redfearn is filibustering. The high frequency traders drove this. Cooperman is right and mathematics and physics confirm that. I sent email to @jimcramer in 2007-8 after hearing him explain uptick rule. Eliminating it favored the HF traders but facts & math support uptock rule.
Redfearn was filibustering again. Cooperman is right. Ask @jimcramer
Stock prices have both magnitude (price) and direction, up or down. My email to @jimcramer explained accelertion as a second derivative of velocity, that dramatically increases that velocity. When a stock is moving in downward drxn, piling-on shortsellers accelerate that move.
@CNBC That downward acceleration in price, short sellers piling on, literally drives price to collapse, then a cascade of events occurs. Markets tank. @jimcramer @steveliesman
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