If you were trading in 2020, you were a part of a generational event...

Overnight said:
While perusing charts and trading stats and other boring shits, I thought back to cows. I love cows (CME live cow futures, LE). Its a funny instrument, with the tightest breakers in futures at the CME. It used to be 3 points up or down, BAM! Shut down. Now, last I recall, it is 4.5 points. Those breakers (trading halts) have fired off many many times in the last 5 years.

And that got me thinking to the horror of March 2020 on equity indices.

When the breakers were created after the 1987 crash, how many times did they ever trip? I came into trading in 2014, and know the breakers never tripped between 2014 and March 2020. And they tripped hard, 4 separate times in March 2020. Yikes.

Turns out, they tripped one other time, in Oct. 1997.

I think that history is important to recall, because the higher these markets go, the easier they become to fall to the breaker level of 7, 14 and 20%.
Or maybe I am just sillyshits. I dunno'. Just thinking out loud.
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Well, 2020 was peanuts compared to the days that followed Lehman's collapse in 2008. It's like night and day. Turns out, NYSE tripped on December 1, 2008 as well.


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Cabin1111 said:
I remember on these boards (ET), we had people who owned oil futures during the pandemic. They may have had them on margin!!

They got very mad here...Then very quiet.
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I wonder if it was a blessing in disguise, because CL was my trading du jour back before the nightmare.

Memories!
 
Speaking of halts I think HOLO was halted about 10 times IN ONE DAY last week. Talk about volatility,yikes.Never a dull moment in the world of stock trading. Wouldn't be surprised if it goes nuts again when the market opens on tuesday.
 
They need to eliminate breakers.......have you noticed everything is in place for sell offs and market drops of just a few percentage points..breakers. emergency fed meetings. QE, TARP, 0% rates for 20 plus yrs. Backstopping, stock buy Backs to inflate earnings, the federal reserve. Bank bailouts, over 4 trillion In assistance during covid, more bank bailouts in 2023 etc etc....the list keeps going going and going.....

These markets aren't real, they never will be since there is always something involved in keeping the propped up.

If markets need to fall let them fall, breakers should be totally eliminated from wallstreet, if stocks sell off let them find a bottom without manipulation on their own. I can just imagine what the next collapse is going to look like and how they will Backstop the next one. They always have a magic trick to reverse any downturn!
 
We hit the breaker in 2016 when trump was elected. Futures were stuck at -5 (until they recovered throughout the morning)

I believe we hit a breaker in late 2015/early 2016 as well. I remember talking to my business analyst about it.
 
Overnight said:
I am a bit more visceral in this sort of thing., When that bell went off on the NYSE floor after the open, two more timers? That had a clang of "finality". Like holy shit, this is happening, everyone is panicking to the point they gotta' halt the markets in the middle of everyone's eggs Benedict.

The death bell!
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Halt the markets, as in what happens when a circuit breaker gets triggered.

Agree with SLE.
 
schizo said:
Well, 2020 was peanuts compared to the days that followed Lehman's collapse in 2008. It's like night and day. Turns out, NYSE tripped on December 1, 2008 as well.


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I was in the .com bubble, LTCM, 08, flash crash and COVID. What I saw in 08 was the scariest of all. It was uncharted territory. Oh and 911 I was actually studying for my 55 that day
 
S2007S said:
They need to eliminate breakers.......have you noticed everything is in place for sell offs and market drops of just a few percentage points..breakers. emergency fed meetings. QE, TARP, 0% rates for 20 plus yrs. Backstopping, stock buy Backs to inflate earnings, the federal reserve. Bank bailouts, over 4 trillion In assistance during covid, more bank bailouts in 2023 etc etc....the list keeps going going and going.....

These markets aren't real, they never will be since there is always something involved in keeping the propped up.

If markets need to fall let them fall, breakers should be totally eliminated from wallstreet, if stocks sell off let them find a bottom without manipulation on their own. I can just imagine what the next collapse is going to look like and how they will Backstop the next one. They always have a magic trick to reverse any downturn!
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I like to see the breakers stay...Just me. I would like them to change everything to the 15 minute rule...It shouldn't matter on the size of the drop.

My thoughts...You need the human element (brain) to absorb the market for a few minutes. No, don't go hog wild on time...But to say "I see value in this equity at this price". Allow all the market (mutual funds, international money, pension funds, dark pools, retail investors) to look at their programs and see if they want to make a modification to their trades.

Then let the action proceed...
 
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