Wall St Circuit Breakers Halts Trading
The market selloff was so rapid today it triggered the automatic circuit breaker halts to trading early today.
https://www.cnbc.com/2020/03/09/sp-5...s-kick-in.html
The rules are this:
Level 1: If the S&P 500 drops 7%, trading will pause for 15 minutes.
Level 2: If the S&P 500 declines 13%, trading will again pause for 15 minutes if the drop occurs on or before 3:25 p.m. ET. There will be no halt if the drop happens after that. (This would occur Monday if the S&P falls 386 points).
Level 3: If the S&P 500 falls 20%, trading would halt for the remainder of the day. (This would occur if the S&P falls 594 points).
We hit level 1 this morning, SP falling 7%, but briefly stopping peoples access to their stocks is like banks briefly stopping peoples access to their bank cash. The result as history showed, was a run on the banks.
So...with trading resuming, human nature is likely to trigger most people to sell, once they or their brokerage can. Stocks are sliding again to this mornings earlier lows, which brings us to circuit breaker number 2...being down 13% for 1 day???
AND...since after 3:25 PM EDT there is no halt...how low can the market sell off in the last half hour?
CURRENTLY 50% C and 50% S (as of COB 04/18/2024) 2nd April IFT
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