The market was up over 30% last year, but GDP growth was certainly not 30%.
Trading halted as U.S. stocks plummet
241–250 of 1001 posts
Re: Trading halted as U.S. stocks plummet
#242Earlier quoted context omitted.
> Only a single L1 or L2 breaker can occur in a single day. Then why does L2 exist? It seems redundant, L1 would get triggered before L2, and only one can occur in a single day, so why have L2 at all? What am I missing here? Edit: Also, anyone who downvoted me for posting the same question as someone at the same minute, you know what to do.
See my other response to a similar comment - I will edit the original.
Makes sense, thanks.
Re: Trading halted as U.S. stocks plummet
#243Genuine 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?
Now thats a really good question.
Re: Trading halted as U.S. stocks plummet
#244Serious 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.
I think you're better off trying to predict when the Coronavirus epidemic will be over. In a way it's more predictable, because we have a fairly good understanding of how it spreads and under what conditions.
Re: Trading halted as U.S. stocks plummet
#245Earlier quoted context omitted.
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.
AFAIK people can still trade in private, just not on the NYSE. So don't worry, it's only us regular guys that get screwed. Big firms can still contact each other to make deals.
How exactly are you getting personally screwed by a 15-minute stop in trading?
Re: Trading halted as U.S. stocks plummet
#246Genuine 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.
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.
The stock exchange is privately owned, the owners/management of the NYSE and other exchanges chose to implement circuit breakers like this. The exchanges still have to operate within the bounds of regulations, but nothing is stopping Joe Blow (other than capital, expertise, navigating regulations, etc.) from setting up his own stock exchange that doesn't have any circuit breakers put in place to prevent flash crashes.
Re: Trading halted as U.S. stocks plummet
#247To 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?
I am not the original poster but I think they are expressing that we were ready for some reversion to the mean after many years of gains including a spectacular 2019.
Re: Trading halted as U.S. stocks plummet
#248This 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.
Re: Trading halted as U.S. stocks plummet
#249Serious 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…
> 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".
Re: Trading halted as U.S. stocks plummet
#250It 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.
Agreed. The temptation is there though. I almost jumped in today to capture some of that, but then I saw that the things I would consider are still very much overpriced ( nnn, berkshire, apple ).
I may end up being wrong, but it seems like we are not near bottom.