An epic rise in the stock market following the worst week ever in the stock market.  That is the story here on Monday, October 13th 2008.  Many short sellers, betting that Morgan Stanley would not even make it over the weekend, were forced to cover their bets as Morgan Stanley rose 87%, in what is commonly referred to as a "short squeeze".  The overall rise in the market was the biggest since 1933.

The short squeeze has happened, compliments of the world governments helping change sentiment.  But will it last?

Investors are wondering why is there still no uptick rule with short sales - where short sales cannot just flood the market.  Why are there still companies on the Reg SHO list despite the SEC's pledge to reign in on naked short selling?  Where are the stock exchanges with regulations when a stock is destroyed by a massive flow of short sellers?

I'm afraid the problems of this market will just continue unless like in India, Italy and other countries, American regulators and authorities acknowledge the problems within the regular trading system and put in more serious reforms.