Here’s One Way To Avoid The Uptick Rule
Shortly after 11:15 A.M.,
Semiconductor Index ($SOX.X) began to sell off. I don’t know the
reason for this sudden decline, but it is holding slightly above the 20-day SMA
at the moment.
11:21:14
TradingMarkets TradersWire)
Maxim Integrated Products (MXIM) has reversed and is now
approaching yesterday’s low. MXIM is down 28 cents at 42.16.
MXIM belongs to the semiconductor sector, and as you can see, the 5-minute chart
looks almost identical to the Semiconductor Index. We could try to sell MXIM at
12:00 P.M. as the stock broke down below yesterday’s low. But one problem is the
uptick rule. It is not easy to sell when a stock is selling off.
Let me show you how some other traders have sold the issue. Do you see it? MXIM
touched the bottom of a bear flag, and it was an excellent point to sell without
worrying about the uptick rule.
If you have questions, feel free to mail them to me.