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NOTABLE! Stock Market Crashes on Open, Circuit Breakers Trip

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MJ DeMarco

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Market opened down 7% ... a complete shit show, and trading continues to be halted as circuit breakers trip.

Marketwatch.com (financial news) also keeps going down.
:wideyed:

Here are the price levels:

Based on the market regulations, the following circuit breaker rules will apply for today if met: Based on SPX prices: Level 1 - (7% decline) 15 minute trading halt Level 2 - (13% decline) 15 minute trading halt Level 3 - (20% decline) Trading suspended for the day.

More info:


These circuit breakers have never been triggered in their current form during regular trading hours. The prior circuit breaker system was revamped after it failed to prevent the May 2010 flash crash. The current set of breakers were put into effect in February 2013.
Of note, if the SPY hits -600, trading for the day is closed -- I don't remember that ever happening in history, perhaps back in the depression crash.

Folks, this could be THE BIG ONE, one that would be remembered for decades.
 

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Ernman

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Wild ride ahead for sure. I bought into the dip and looking to shift some more so I can take advantage of this. I've not educated myself on options, so not playing that game.
 

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Market opened down 7% ... a complete shit show, and trading continues to be halted as circuit breakers trip.

Marketwatch.com (financial news) also keeps going down.
:wideyed:

Here are the price levels:

Based on the market regulations, the following circuit breaker rules will apply for today if met: Based on SPX prices: Level 1 - (7% decline) 15 minute trading halt Level 2 - (13% decline) 15 minute trading halt Level 3 - (20% decline) Trading suspended for the day.

More info:




Of note, if the SPY hits -600, trading for the day is closed -- I don't remember that ever happening in history, perhaps back in the depression crash.

Folks, this could be THE BIG ONE, one that would be remembered for decades.
Thank you for the alert. Please keep us posted of developments throughout the day.
 
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MJ DeMarco

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Robinhood, the trading app of millennials and Gen-Zers also keeps crashing.

Second time in so many months. Proof that anything FREE tends to have a hidden cost.
 

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Robinhood, the trading app of millennials and Gen-Zers also keeps crashing.

Second time in so many months. Proof that anything FREE tends to have a hidden cost.
I heard the app crashed because they hadn't coded for February 29.

They now have a gold version of the app, $5 a month. Still better than $5 a trade I guess.
 

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Wild ride ahead for sure. I bought into the dip and looking to shift some more so I can take advantage of this. I've not educated myself on options, so not playing that game.
I'm interested in puts as one of the hedging strategies to try out against adverse movements...but I don't think I'd be able to learn and put it out in action in time, and I haven't many positions to hedge. :(

In my own home country though, stocks are taking a quadruple whammy, especially when the government went to crap overnight, oil price tanking (means my country as an oil producer banks in less oil money), and the virus...

I heard the app crashed because they hadn't coded for February 29.

They now have a gold version of the app, $5 a month. Still better than $5 a trade I guess.
It's a matter of time before the SEC swarms in.
I read r/wallstreetbets for the memes and crazy trades, and those folks just never stop exploiting for 'unlimited margin' and 'box spreads'.

Robinhood, the trading app of millennials and Gen-Zers also keeps crashing.

Second time in so many months. Proof that anything FREE tends to have a hidden cost.
Eh, I thought RH gets its earnings from interest on the folks' cash accounts and stocks? Not enough revenue from there?
 

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Market opened down 7% ... a complete shit show, and trading continues to be halted as circuit breakers trip.

Marketwatch.com (financial news) also keeps going down.
:wideyed:

Here are the price levels:

Based on the market regulations, the following circuit breaker rules will apply for today if met: Based on SPX prices: Level 1 - (7% decline) 15 minute trading halt Level 2 - (13% decline) 15 minute trading halt Level 3 - (20% decline) Trading suspended for the day.

More info:




Of note, if the SPY hits -600, trading for the day is closed -- I don't remember that ever happening in history, perhaps back in the depression crash.

Folks, this could be THE BIG ONE, one that would be remembered for decades.
Heard a guy say, “Oh the markets going to hell. Guess no one can retire.”

Guess people should have read the millionaire Fastlane.

Such slowlaner mindset.

I’ve sat out of the market 3 years because I thought it was overpriced in Aug 2015.

Even when I was a teenager who loosely followed stocks in 2006 I thought things were overpriced.

Seems I’m a few years ahead of the herd in realizing. I have never been right about the exact thing that causes a crash.

Just like Nassim Talib’s Black Swan concept states.
 

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This is crazy.

Last month I pulled several thousand dollars out of mutual funds. I'm planning to use the money in a few months and I figured the market would dip soon, wanted to be safe.

The market kept going up instead, husband would make jokes about how I should have waited a few more days ...
 

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Everyone knew the market was overpriced for far too long, yet the different mechanisms installed after 2008 made a bubble explosion difficult (read articles published in 2019 on the "possible" upcoming 2020 recession, it is quite interesting). What we see here is a slow "explosion" of the market triggered by the coronavirus epidemic. Tbh, it could have been triggered by anything else, but well, it is like that.
Now, why was the market overpriced? Money has been cheap for a long time now, this money was invested into the market which saw itself having "too much money" and inflated and inflated stock prices. As long as companies were profitable, why stopping? Then the virus appeared in China, markets panicked to see companies profits falling because of the disappearance of Chinese consumers and suddenly, everyone remembered that in fact, the stocks were overpriced anyway. We now know that what happened in China will also happen in th rest of the world, which means an even bigger blow for companies. Imagine: after not being able to sell because China couldn't deliver, your own clients are placed in quarantine!! So overpriced stock market + impossibility to get supply + impossibility to sell merchandise + future recession = a financial balloon slowly deflating to come back to "actual" prices. Although as we speak, many companies are undervalued, the time to buy is between now and the next three months!!

It is interesting because quite unique: in the 1929 or 2008 crash, the economy was down because people did not have money to buy. In our case, people have the money....but cannot physically go buy!! So more money is only going to partially solve the problem, what we need is to get people out of the house and into the shops!!

I am pretty sure we'll remember this day for a long time, it is historic. Sad...but historic!
 

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Can you imagine trying to retire by going all in on these indexes. Two months ago at an all time high your planning your vacation on the beach and two months later it’s all gone and then some. Wow.
 
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Futures are up a few % on the Trump's mention of payroll tax relief.

30931

MY guess is that strength won't last until morning. I think the bottom (as I mentioned last week) is around SPX 2500.
 

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I think the news of crude dropping along with the growing fear of the threat of CV worldwide really set the stage for the plunge this morning. I watched it open, and it almost seemed as though everyone just knew the circuit breakers were going to trip, and within just a few short minutes it happened.

The huge concern regarding CV was the driving force, but oil prices plummeting overnight was the straw that finally set it in motion.

I for one don't believe this is anywhere near the bottom yet, and tomorrow (Tue.) my guess is it will gap up in the a.m. and open at 3100 or so. I think there is a bit of wind in them sails yet, but won't last the day and close out again lower, but not much.
Have done quite well the past few weeks but this drop today was a punch in the gut. OPEC wasn't even considered in the equation 48 hours ago, at least for me. Hope to pull off a hail mary in the a.m. with a few stranglers.
Then all cash on the sidelines for fire sales...
 

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If anyone's looking for UK news and views then the Financial Times has started a couple of group chats on Telegram 'FTAV Markets Live' is where they give commentary on what's happening, and 'FTAV readers' is where anyone can post. Lots of interesting chat and people more in the know than me there. I don't think you need to be an FT subscriber to join.
 

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View: https://www.facebook.com/1291881054243432/posts/2635512646546926/?vh=e&d=n


Here’s a wild video about the lengths they might go to to prevent a recession.

If they don’t do this well yeah it’s recession time baby.

TLDR:
-they are passing a law in aus banning cash transactions over 10k to “prevent people avoiding tax”
-ocr is already .5%, needs to drop 3% to prevent recession (something like that)
-you’d have to pay banks to keep your money as interest rates would be negative
-new law means you couldn’t just keep your cash under your mattress
-there’s an official report with a bunch of other ideas for how to prevent people using and hoarding cash if interest rates went negative, they talk about some of the ideas in the video
-the idea of negative interest rates is to force you to spend money and consume to keep economy alive
 

BellaPippin

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So like, I haven't really been following the recession thread but I've noticed everything crashing and what not.

Obviously for some industries this is temporary as in, airlines. At some point they WILL bounce once this is all over. So like, would this be a "don't miss this" time to buy type of thing? Airlines were the only industry I could come up with but do name more. Thoughts?

I just broke 10k in savings for my down payment so like, my OCD me wants me to stay at 10,000 even lol.

P.S. My procrastination in rolling over my little 401k paid, I wonder how much value I would have lost on the little 5k sitting there. --on second thought what if I used those 5k to buy some
 

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exclusives88

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I just purchased shares of airline stocks and selling calls expiring each Friday. What do you think of this strategy? AAL is already down 50%. If it keeps going down, I will just recoup my money with selling calls since volatility is so high. So I buy 3000 shares, and sell 30 16x calls for $2,700.

Scenarios:
If AAL stays flat, I will make $2,700
If AAL goes up more than $16.90, I will make $3,500
If AAL goes down $14.80, I will break even
If AAL goes down even more, I will sell more calls next week.
 
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BellaPippin

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I just purchased shares of airline stocks and selling calls expiring each Friday. What do you think of this strategy? AAL is already down 50%. If it keeps going down, I will just recoup my money with selling calls since volatility is so high. So I buy 3000 shares, and sell 30 16x calls for $2,700.

Scenarios:
If AAL stays flat, I will make $2,700
If AAL goes up more than $16.90, I will make $3,500
If AAL goes down $14.80, I will break even
If AAL goes down even more, I will sell more calls next week.
My common sense would be that even if it goes down some more this month and the next, at some point it's going to rebound, it just has to. This will be "over" at some point. Then again idk about trading.
 

mon_fi

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I just purchased shares of airline stocks and selling calls expiring each Friday. What do you think of this strategy? AAL is already down 50%. If it keeps going down, I will just recoup my money with selling calls since volatility is so high. So I buy 3000 shares, and sell 30 16x calls for $2,700.

Scenarios:
If AAL stays flat, I will make $2,700
If AAL goes up more than $16.90, I will make $3,500
If AAL goes down $14.80, I will break even
If AAL goes down even more, I will sell more calls next week.
I bought shell and Abinbev thinking they couldn't go any lower and it taught me two things:
1. Don't hope stocks will soar at the beginning of a bear market.
2. It can always go lower as long as it has not reached zero.

Based on recent events, airline shares will actually keep on diving as the who has just declared world pandemic on corona. I would buy puts on shares that have not suffered too much yet (the infamous stay at home index) because as the world paralyzes, they ll dive like anyone else.
 

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I bought shell and Abinbev thinking they couldn't go any lower and it taught me two things:
1. Don't hope stocks will soar at the beginning of a bear market.
2. It can always go lower as long as it has not reached zero.

Based on recent events, airline shares will actually keep on diving as the who has just declared world pandemic on corona. I would buy puts on shares that have not suffered too much yet (the infamous stay at home index) because as the world paralyzes, they ll dive like anyone else.
Well, one thing is that many people will not be invested in single stocks but in index and high yield etfs. Which makes the movement of courses somewhat counterintuitive. You might think that food goes up in such a situation? Nope, it is a major part of most etf shares. In my opinion, you see here not just the effect of the corona virus going on but what some people called the ETF bubble. I mean, downturning in recessions is normal - the question is in which dynamic and we have seen now a decline of 20% within 4 weeks. A median bear market is around 4 months. Now you can make your estimates :)
 
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MJ DeMarco

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Looks like tomorrow might be PART 2 of the crash. Futures down big again with the European travel ban. Could have an open in the 250's (SPY).

If it keeps going down, I will just recoup my money with selling calls since volatility is so high.
Selling calls in a blood bath is like bandaging a gun shot wound, sure the bleeding slows, but the dying just takes longer. It helps minimize losses, but it is not necessarily a sure thing. Your post seems confident in the strategy, hope it works out.
 

exclusives88

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Looks like tomorrow might be PART 2 of the crash. Futures down big again with the European travel ban. Could have an open in the 250's (SPY).



Selling calls in a blood bath is like bandaging a gun shot wound, sure the bleeding slows, but the dying just takes longer. It helps minimize losses, but it is not necessarily a sure thing. Your post seems confident in the strategy, hope it works out.
hah! Not with the travel suspension to Europe. Oh well, I’ll just hold and keep selling calls.
 

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Looks like tomorrow might be PART 2 of the crash. Futures down big again with the European travel ban. Could have an open in the 250's (SPY).



Selling calls in a blood bath is like bandaging a gun shot wound, sure the bleeding slows, but the dying just takes longer. It helps minimize losses, but it is not necessarily a sure thing. Your post seems confident in the strategy, hope it works out.
I really like trump on policy, but he’s just not the kind of person who’s good at this kind of thing.

whatever the markets were expecting to hear, they didn’t hear it.
 

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I expect this to be a Level 2 day.

Turmoil.
 

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I have never seen anything like this before.

Everything is hemmoraging.

Watching people say buy the dip!

It's time in the market, don't time the market!

All of it makes me want to vomit and slap them lol.
 

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