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Trading halted as U.S. stocks plummet

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Re: Trading halted as U.S. stocks plummet

#281

Post by huac »

3fe9a03ccd14ca5 wrote: post #220
totaldude87 wrote: post #184

To 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..

Oil dropping because an opec monopoly explodes is good news for most of the economy (outside of oil industries obviously). But a drop in crude because of demand is bad for everybody.

no - oil dependent companies bought oil futures to hedge their price risk, so you shouldn't expect much benefit there. additionally, the high yield bond sector has a ton of energy company exposure, and those are falling through the floor. an extended price war could really obliterate those bonds, and their lenders.

see eg https://twitter.com/TheStalwart/status/1237022304510660608

Re: Trading halted as U.S. stocks plummet

#282

Post by airstrike »

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.

I've heard things will bottom out as soon as we have good news about the virus. That's not happening next week.

Disclaimer: this does not constitute investment advice in any way, shape or form. Do whatever you want.

Re: Trading halted as U.S. stocks plummet

#283

Post by bumby »

sjg007 wrote: post #224
totaldude87 wrote: post #184

To 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?

Take this with a train of salt because I’m not an economist, but one of the most often touted general points of the need for a correction is the cyclically adjusted price to earnings ratio being elevated [1].

In other words, stocks are more “expensive” and thus ripe for a correction

https://www.multpl.com/shiller-pe

Re: Trading halted as U.S. stocks plummet

#285

Post by rococode »

_se wrote: post #204
jagged-chisel wrote: post #199

Earlier quoted context omitted.

> 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?

Sorry - I meant that neither L1 nor L2 can trigger twice in a day, E.g. down 8%, up 2%, down 9% does not trigger a second L1 breaker.

Especially relevant today since after hovering around -5% for most of the session after the first halt, right now we're at -6.9% and threatening to push below 7% again.

Re: Trading halted as U.S. stocks plummet

#286

Post by kick »

isoskeles wrote: post #196
_se wrote: post #186

Earlier 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. 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.

No matter how much you didn't deserve downmodding, complaining about them only invites more. You have a better chance of recovery by not bringing them up, and the News Guidelines ask that you don't.

Please don't comment about the voting on comments. It never does any good, and it makes boring reading.

https://news.ycombinator.com/newsguidelines.html

Re: Trading halted as U.S. stocks plummet

#287

Post by Tepix »

Litmus2336 wrote: post #229
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.

All you need to correctly pick the bottom and peak of a year is 365 people. 366 in leap years.

You need 365 * 365 to get both the bottom and peak right

Re: Trading halted as U.S. stocks plummet

#288

Post by the_gastropod »

zyang wrote: post #258
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…

Please don't shuffle your retirement investments based on market volatility. Best thing is just do nothing and ride it out.

I'd tweak this advice _slightly_. After this pretty significant swing, it's probably a good time to re-visit your asset allocation. If you're, for example, holding 10% bonds, your allocation is now going to be overweight bonds. So it's a good time to sell some bonds, buy equities, and get back to your 90%/10% allocation.

Re: Trading halted as U.S. stocks plummet

#289

Post by [deleted] »

eej71 wrote: post #205
A4ET8a8uTh0 wrote: post #198

Earlier 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.

[deleted]

Re: Trading halted as U.S. stocks plummet

#290

Post by aazaa »

ipnon wrote: post #275
aazaa wrote: post #266

> 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 purch…

The circuit breaker was already triggered when the market opened this morning at 9:30 AM EST.

You're right.
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