Market halt coming?

[athlonmank8]

This is setting up for a crash scenario. E/U below 1.400 and they're going to have to step in. IMO we're gonna see it. I hope I'm wrong.

With the rush to treasuries I don't even see how QE3's gonna have any impact.

 

[bond_trad3r]

Huh? You mean after-hours limit down in futures. Yeah it's possible.

 

[Random.Capital]

I'm not sure what the OP was thinking specifically.

It seems to me we're setting up for, potentially, an outright closing of the markets, to be perfectly honest.

 

[Larson]

As Jim Sinclair stated, the king has been exposed to have no clothes. The heavy distribution from last week was the warning. Dark days await.

 

[denner]

Quote from Random.Capital:

I'm not sure what the OP was thinking specifically.

It seems to me we're setting up for, potentially, an outright closing of the markets, to be perfectly honest.

Yes, eventually, I don't know about in the next few days. But hell, even though supposedly everybody is "bearish", all I saw today were guys going long and getting longer.

The entire world bets on the side of the Fed saving the markets for the umpteenth time.

 

[Random.Capital]

I agree, it seems an awful lot of folks were out there trying to catch falling knives.

 

[shortie]

Quote from denner:

Yes, eventually, I don't know about in the next few days. But hell, even though supposedly everybody is "bearish", all I saw today were guys going long and getting longer.

The entire world bets on the side of the Fed saving the markets for the umpteenth time.

of course, they will save the market. the question is starting at what level? my understanding is that Fed is more or less out of bullets, so THEY will only shoot when they can make a difference. Naturally, the lower the market, the easier for it to bounce (other things being equal).

 

[denner]

Quote from shortie:

of course, they will save the market. the question is starting at what level? my understanding is that Fed is more or less out of bullets, so THEY will only shoot when they can make a difference. Naturally, the lower the market, the easier for it to bounce (other things being equal).

Right, "starting at what level", which is why that article you posted over this weekend was so utterly ridiculous. You realize that the hordes of guys getting long on each decline and "longer" on the way down lose more in a single day than they probably could have made in months with low volatility churn higher.

And I'll tell you what happens when we get that "Fed rally"; they won't sell because they have to make up for all those losses on the way down. The rallies are so sharp and so convincing, that everyone will stay long figuring 1250, 1300, etc will come in short order.

 

[kxvid]

This is all too reminiscent of the 2008 crash. If investors are twice burned, I would imagine the capital markets of 2015 will be very different from those of 2005. Lower liquidity, higher flotation costs, general stagnation or worse. There is only so much pain the longs can take before they either throw in the towel or go broke. A market halt is always possible, but exchange "circuit breaker" implementation IMO is more likely.

 

[athlonmank8]

No over the next week or so. E/U hasn't shown anything close to a bottom yet and until it does the Dow could easily puke up another 2000 pts. I could be totally wrong here, but I can't think of another scenario at the moment UNLESS someone comes up with something creative.