Trading halted as U.S. stocks plummet • Hacker News Board

Re: Trading halted as U.S. stocks plummet

#261

Post by airstrike » Mon, Mar 09, 2020, 5:37 PM UTC

totally wrote: post #192

bilekas wrote: post #180

Genuine 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.

Would they also circuit break on 7% increase, in order to give people time to come back from positive feelings?

No, because if the market is up 50% because we humanity has discovered an immortality serum, nobody is panicking.

There's no downside in great news (other than the possibility of a quick reversal thereafer...)

Re: Trading halted as U.S. stocks plummet

#262

Post by thedance » Mon, Mar 09, 2020, 5:37 PM UTC

jaequery wrote: post #248

This is creating one of the best buy opportunity ever. It's just sad that only the rich will benefit. The poor will just get poorer.

You sound a tiny bit like 2006-edition real estate agent.

https://www.millersamuel.com/wp-content/uploads/oldimages/NA...

Re: Trading halted as U.S. stocks plummet

#263

Post by disease » Mon, Mar 09, 2020, 5:37 PM UTC

walrus01 wrote: post #188

Serious 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.

In my experience it's always good to buy when sentiment is bad. If this is just a minor dip that will bounce back up, then you got a nice little discount on your equities. If it is the start of a major downturn then you have taken the first step towards buying at a greater and greater discount and can continue buying all the way down.

I don't consider this to be timing the market. You should always be investing but when sentiment is bad you just buy more than you would normally.

Re: Trading halted as U.S. stocks plummet

#264

Post by grandmczeb » Mon, Mar 09, 2020, 5:37 PM UTC

A4ET8a8uTh0 wrote: post #231

eej71 wrote: post #205

Earlier quoted context omitted.

These rules are completely in keeping with the free market.

Would you care to elaborate? I would argue that guard rails and controlled falls are in opposition to actual free market. The qualifier 'completely' seems misplaced.

The stock market is a privately owned entity that does not represent the broader market referred to in the phrase “the free market.”

Re: Trading halted as U.S. stocks plummet

#265

Post by sgc » Mon, Mar 09, 2020, 5:37 PM UTC

newfangle wrote: post #181

76543210 wrote: post #178

It did the trick. Everyone is talking about it and my friends are buying.

I dont think its time to buy yet. If we have a multiple month disaster that requires quarantining most of the population the market will fall further.

Don't buy after the first big city is quarantined. Maybe after the second or third... But know you are taking an incredible risk unless you are using funds you can hold in that position for years.

Re: Trading halted as U.S. stocks plummet

#266

Post by aazaa » Mon, Mar 09, 2020, 5:38 PM UTC

> The cash equities market is subject to circuit breakers established by the New York Stock Exchange in the wake of the 1987 Black Monday crash. Trading will halt for 15 minutes if the S&P 500 falls 7% to 2,764.3 at any time before 3:25 p.m. in New York. ...

That's less than a 1% drop from here.

Right now, all eyes are on the Fed and the size of the bazooka they'll be deploying.

Anything short of outright stock purchases is not going to be received well. Despite the desperation that move smells like, the Fed would be merely following ground already trodden by the Bank of Japan, which now owns around 80% of the Japanese ETF market.

Edit: only 5 points to go.

Re: Trading halted as U.S. stocks plummet

#267

Post by airstrike » Mon, Mar 09, 2020, 5:38 PM UTC

wycy wrote: post #260

bilekas wrote: post #180

Genuine 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.

When you think about it, the whole market sort of follows these arbitrary-seeming rules. The actual prices of stocks are constantly changing 24/7/365, but the market is only open from 9:30am-4:00pm on weekdays excluding holidays.

The exchange is open from 9:30am to 4:00pm, but you and I are free to trade amongst ourselves at midnight on a Friday if we'd like

Re: Trading halted as U.S. stocks plummet

#268

Post by jamesjyu » Mon, Mar 09, 2020, 5:38 PM UTC

allovernow wrote: post #191

walrus01 wrote: post #188

Serious 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.

No one will be able to time this. We don't even know if this is the start of a [global?] recession or depression. If you haven't already, put your retirement into bonds and hold on. Honestly it might be a good idea to grab some cash from the bank to keep at home - bank runs are not outside the realm of possibility, although we have credit cards and other internet based payment methods now so it's probably less of a c…

"No one will be able to time this"

"put your retirement into bonds and hold on"

facepalm

Re: Trading halted as U.S. stocks plummet

#269

Post by kazinator » Mon, Mar 09, 2020, 5:38 PM UTC

HideousKojima wrote: post #257

walrus01 wrote: post #188

Serious 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.

The most important rules to follow when investing in stocks: The market can stay irrational for longer than you can stay solvent and Don't bet any more on the market than you're willing to lose

That's almost a tautology since the market never stops being irrational.

Re: Trading halted as U.S. stocks plummet

#270

Post by creaghpatr » Mon, Mar 09, 2020, 5:38 PM UTC

wincent wrote: post #249

allovernow wrote: post #191

Earlier quoted context omitted.

No one will be able to time this. We don't even know if this is the start of a [global?] recession or depression. If you haven't already, put your retirement into bonds and hold on. Honestly it might be a good idea to grab some cash from the bank to keep at home - bank runs are not outside the realm of possibility, although we have credit cards and other internet based payment methods now so it's probably less of a c…

> If you haven't already, put your retirement into bonds and hold on. Are you advising to sell equities right after they've taken a beating? Sounds awfully close to "buy high, sell low".

Depends on your retirement horizon, but if it's inside of 5 years the investor should have already tamped down the risk profile.