It did the trick. Everyone is talking about it and my friends are buying.
When all of your non-trader friends are buying, it's not the time to buy.
Trading halted as U.S. stocks plummet
221–230 of 1001 posts
Re: Trading halted as U.S. stocks plummet
#222In a world with zero-to-negative interest rates, unlimited margin available for the big players and a generation
of boomers sold on the idea that stock appreciation (not dividends) is going to fund their retirement, what's the value of any company? Who knows?
Until dividends are tax advantaged vs. capital gains, the insanity will continue. Leverage, huge risks and various shades of fraud, rather than responsible business stewardship will continue to dominate the financial system.
Re: Trading halted as U.S. stocks plummet
#223Earlier quoted context omitted.
"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…
Okay thats fine, but who implements/decides these circuit breakers ? And what purpose to they serve only to limit a mass sell off ? Nice point about only 2 daily. But still seems crazy.
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Re: Trading halted as U.S. stocks plummet
#224To be honest , the market was in dire need for correction, BUT wonder where we will be when companies starts reporting their quarterly results and impact of that. So far this looked more like a correction than a precursor to the recession. To make things worse, OPEC dropped bombs which spread the wildfire further..
Why was or is the market in need of a correction? What is your evidence for that statement?
Re: Trading halted as U.S. stocks plummet
#225Earlier quoted context omitted.
"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…
> Only a single L1 or L2 breaker can occur in a single day. I don't follow. You'd hit 7% before 13%, so how would L2 ever execute?
It's only a 15 minute halt. So if you hit 7% and trigger L1, trading is halted for 15 minutes, but then it resumes. If it drops down to 13% another 15 minute trigger happens.
But each of the L1 or L2 can only occur in a single day, not one or the other. You can hit L1, and then later hit L2, but you can't hit L1 twice.
Does that help clear things up?
Re: Trading halted as U.S. stocks plummet
#226Earlier quoted context omitted.
Without going into too much detail, short answer is yes. Most people don't seem to know how far away current setup is from 'free market' touted in school. It is weird given that this information is not hidden. It is just not widely spread.
These rules are completely in keeping with the free market.
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Re: Trading halted as U.S. stocks plummet
#227It seems Mr. Market doesn't get to visit as freely or stay as long as he likes sometimes.
Re: Trading halted as U.S. stocks plummet
#228Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.
Why would they not be allowed to manage their platform in this way? I'd be surprised if they were unable to.
Re: Trading halted as U.S. stocks plummet
#229Serious question, is anyone watching this carefully and trying to determine when things will bottom out (perhaps in a week or two), to buy stocks, ETFs, and such at the bottom of the dip? Hindsight is 20:20 of course, but there's a number of equities that one could have purchased shortly after the 2008 financial crisis that proceeded to make significant gains between 2009 and 2019.
All you need to correctly pick the bottom and peak of a year is 365 people. 366 in leap years.
Re: Trading halted as U.S. stocks plummet
#230Serious question, is anyone watching this carefully and trying to determine when things will bottom out (perhaps in a week or two), to buy stocks, ETFs, and such at the bottom of the dip? Hindsight is 20:20 of course, but there's a number of equities that one could have purchased shortly after the 2008 financial crisis that proceeded to make significant gains between 2009 and 2019.
There's a colorful term for this: "catching falling knives".