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Trading halted as U.S. stocks plummet

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Re: Trading halted as U.S. stocks plummet

#41

(I'm not a trader) if I wanted to watch the market with a near-real-time dashboard, does that exist?

Koyfin: https://www.koyfin.com/home

Maybe not:

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Re: Trading halted as U.S. stocks plummet

#42
post #23
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.

The multi-trillion dollar question, though, is whether the Fed actually has much ability to help much with the current situation. Flooding the economy with cash probably isn't going to make people want to book a cruise anytime soon.

Re: Trading halted as U.S. stocks plummet

#43
post #29

Slightly unrelated, but why does the stock market close each night? If trading was open 24/7, we wouldn't have large spikes like this every morning. We'd only have them when certain news is announced.

Compressing hours is good for liquidity and risk managers need to sleep, among other things.

Re: Trading halted as U.S. stocks plummet

#45
post #29

Slightly unrelated, but why does the stock market close each night? If trading was open 24/7, we wouldn't have large spikes like this every morning. We'd only have them when certain news is announced.

This is a pretty good answer: https://www.quora.com/Why-is-the-stock-market-not-open-24-7

TL;DR: Letting markets take regular breathers probably helps curb swings in the market. It also lets people who manage money get some sleep (though of course there are other markets open 24/7).

Re: Trading halted as U.S. stocks plummet

#46
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…

So what are you shorting?

Your everyday investor probably shouldn't be shorting in ultra high volatility periods like this. Markets spike for one day in the course of leading to a recession leads to a margin call and you can't post collateral, then you're done. Doesn't matter if it goes to zero a week after.

Re: Trading halted as U.S. stocks plummet

#47
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…

> This will be blamed on COVID-19

Good. Because I don't buy for a moment that without COVID-19 the situation would be what it is now. Hindsight is 2020 and predictions of doom and stock market collapse is a dime a dozen.

Re: Trading halted as U.S. stocks plummet

#48

For those unaware, this is common practice -- it a control that is working as intended. The trading was halted for 15 minutes

This is official policy, but not "common practice." According to CNBC: "These circuit breakers have never been triggered in their current form during regular trading hours." https://www.cnbc.com/2020/03/09/sp-500-futures-are-frozen-af...

The current circuit breaker rules went into effect in early 2013. There were different rules in-place prior to that date.

Re: Trading halted as U.S. stocks plummet

#49

Earlier quoted context omitted.

> 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.

I've been skeptical of the whole yield curve as metric thing because it's not directly tied to the actual state of the economy directly just to the sentiment about the market X years in the future. Given how much we know the whole market is prone to group think, self delusion, and outright manipulation I've grown very skeptical of any indicator about the market that comes directly from the market.

Re: Trading halted as U.S. stocks plummet

#50
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…

This is widely being blamed on oil prices (edit: the virus would have been priced in last week to some extent, but the decision by Saudi Arabia to increase oil production happened over the weekend and hadn't been).
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