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Trading halted as U.S. stocks plummet

axios.com

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Re: Trading halted as U.S. stocks plummet

#21

Post by whatshisface »

aazaa wrote: post #10

This will be blamed on COVID-19, but the problems go much deeper. Last year the Fed lost control of the repo market. the event was widely discounted at the time as an end-of-tax-year fluke. It wasn't. Six month ago, the yield curve inverted. People who should have known better said "this time is different." Speculators have been trained over the course of 10+ years to buy the dip. The Fed has your back. What we're se…

>Six month ago, the yield curve inverted. People who should have known better said "this time is different."

How does your story jive with the fact that the yield curves went back to normal? Either they are an indicator or they aren't.

Re: Trading halted as U.S. stocks plummet

#23

Post by cm2187 »

aazaa wrote: post #10

This will be blamed on COVID-19, but the problems go much deeper. Last year the Fed lost control of the repo market. the event was widely discounted at the time as an end-of-tax-year fluke. It wasn't. Six month ago, the yield curve inverted. People who should have known better said "this time is different." Speculators have been trained over the course of 10+ years to buy the dip. The Fed has your back. What we're se…

I kind of think that the Fed will not let this go too far in the middle of an election year, particularly given Trump. But yeah, the market was clearly overextended, and stock price growth was accelerating.

Re: Trading halted as U.S. stocks plummet

#24

Post by aguyfromnb »

whatshisface wrote: post #21
aazaa wrote: post #10

This will be blamed on COVID-19, but the problems go much deeper. Last year the Fed lost control of the repo market. the event was widely discounted at the time as an end-of-tax-year fluke. It wasn't. Six month ago, the yield curve inverted. People who should have known better said "this time is different." Speculators have been trained over the course of 10+ years to buy the dip. The Fed has your back. What we're se…

> Six month ago, the yield curve inverted. People who should have known better said "this time is different." How does your story jive with the fact that the yield curves went back to normal? Either they are an indicator or they aren't.

>Either they are an indicator or they aren't.

Because after the inversion the market (and Fed) reacted? No indicator is infallible or static.

Re: Trading halted as U.S. stocks plummet

#26

Post by jacobush »

marzell wrote: post #19
pacerwpg wrote: post #7

Earlier quoted context omitted.

When was the last time this happened?

Apparently in 1997, so it has been quite a while https://en.m.wikipedia.org/wiki/Trading_curb#Instances_of_us...

Way before high frequency trading, to put some things in perspective.

Re: Trading halted as U.S. stocks plummet

#28

Post by cm2187 »

neural_thing wrote: post #4

Trade safe. Historic times. Wouldn't be surprised if all the volatility shorts blow up and the S&P goes down 20% in a session.

The volumes on Vix futures are a fraction of what they were two years ago. Vix is shooting up but I assume it is following the stock market rather than the other way round.
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