It is true that you can't make the rod move and stop using any of the mates; however, the configuration manager can help you out some. Go to the configuration manager and create two new configurations, "up" and "down". Go into the up configuration and create a mate in the...
To make my models clearer, I always begin drawing a part so that it naturally orients itself with the front, back, top... buttons. Doing so makes assembly much easier to mate.
Also, within assemblys it is possible to mate the planes of a part to the planes of an assembly. I always do this...