If you can make trillions of dollars change with only billions why doesn't some firm just try doing it on purpose.
almost everything is going to stand. They ruled everything within 60% of the last consolidated print will stand. some firms are going to be ****ed.
I think there are 3 levels for circuit breakers. The first one kicks in at 10%. The calculation of the 10% is based off the value of the DOW at the beginning of the each quarter, I think. But there are other stipulations. For example, if the drop happens after 2:30, the 10% circuit breaker won't fire.
Some of the firms in the MLP space have their numbers hedged well into the future while others are more sensitive to short term changes in commodity energy prices. Others have more of a toll collector role in the industry and suffer minimal to zero impact from price changes in the energy commodities. Indiscriminate dumping of those stocks - units makes zero sense. In Fall 2008, there was massive dumping in the MLP sector and they rebounded very nicely in 2009.
That is interesting that they don't have the circuit breakers after 230PM. I wonder what the rationale is for that.
Ok, thanks for clarifying - my mistake. I hadn't heard about the 60%. Holy crap, tomorrow morning may be an adventure. I heard Niederauer saying tomorrow morning is could be "fairly ugly".
What about those who bought below the 60% cut off and then sold before the Close? They will also have to bust the trade that the trader went Flat on?
They do have circuit breakers for after 2:30pm, they just don't kick in on the first tier. I think either at 20% or 30% they kick in after 2 or 2:30pm. As a matter of fact, I think at 30% the market just shuts down for the day.
<object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/S8H2FIf1oH4&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/S8H2FIf1oH4&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>
Then that is going to be wicked because there might be some who lack the agreement - document with their Broker to sell Short. So the Broker will want them to settle by buying and go flat ASAP.
I wonder how much the NYSE Trading Collars would have helped if they didn't scrap them 2 years ago. When I was prop trading for a living, it seemed like they made a big difference when they were on.
I am flat on all shorts after this afternoon. I expect a sizable gap down open tomorrow, then possibly a rally throughout the day, ending green. That part is just my speculation. For a bit longer term I expect a rally back up close to 1180 in the next week or two. IF and when we get there, if you are a stuck long, this would be your opportunity to exit. Personally I am shorting the crap out of 1170-80, with stops of course. This would be a much longer term trade with a possible target of 900. Good luck.
It's not the only reason, but it's certainly the cause. It took out just about everybody's stop loss. Of course there's also the ECB's idiotic decision, but that occurred before the drop so I don't think that's what you meant. 10% drop before 2PM => Market closes 1 hour 10% drop between 2PM and 2:30 => Market closes 30 minutes 10% drop after 2:30 => No halts 20% drop before 1PM => Market closes 2 hours 20% drop between 1PM and 2PM => Market closes 30 minutes 20% drop after 2:30 => Market closes for the day 30% drop => Market closes for the day At least as I can remember. It's pretty damn hard too close the market in this day and age. Um. Illegal. Not true. See above.
Hey guys what website is beneficial for trading here? I was given advise to go through share builder, any suggestions?
oh well...i was posting from my phone. didn't really feel like updating my post after DoD posted the link. next time we are down 20% after 2:30 ill thank you
