Money & Economics
- Thread starter bigredfish
- Start date
What happens to Wall Street if BLACK MONDAY 2.0 ever hits?
Wall Street has 3 emergency brakes for this, and the last one has NEVER been pulled.
If the S&P 500 falls:1. 7% before 3:25 PM ET: all US stock trading halts for 15 minutes2. 13% before 3:25 PM ET: another 15-minute halt3. 20% at any time: trading stops for the rest of the day
S&P 500 futures are also capped at a 7% move overnight, per CME Group.
There were no such brakes on the original Black Monday, which turns 39 on Monday.On Oct 19, 1987, the Dow crashed 22.6%, the S&P 500 fell 20.5% and the Nasdaq dropped 11.4% in a single day. About $500 BILLION in US stock value was wiped out.
When Hong Kong shut its stock exchange for 4 days, the Hang Seng crashed 33% the day it reopened.Wall Street added circuit breakers in 1988.They weren't triggered until Oct 27, 1997, when the Dow fell 554 points and trading ended 30 minutes early. The rules were tightened in 2013, after the breakers didn't trigger during the 2010 Flash Crash.
In March 2020, the first brake tripped 4 times in just 8 trading days.
Now, stocks have also started trading 24/7 on crypto exchanges as tokens and leveraged bets, with none of these brakes.On Saturday, with US markets shut, $51.6 MILLION of leveraged chip-stock bets were liquidated there in just 10 MINUTES, per CoinGlass data.
Wall Street has 3 emergency brakes for this, and the last one has NEVER been pulled.
If the S&P 500 falls:1. 7% before 3:25 PM ET: all US stock trading halts for 15 minutes2. 13% before 3:25 PM ET: another 15-minute halt3. 20% at any time: trading stops for the rest of the day
S&P 500 futures are also capped at a 7% move overnight, per CME Group.
There were no such brakes on the original Black Monday, which turns 39 on Monday.On Oct 19, 1987, the Dow crashed 22.6%, the S&P 500 fell 20.5% and the Nasdaq dropped 11.4% in a single day. About $500 BILLION in US stock value was wiped out.
When Hong Kong shut its stock exchange for 4 days, the Hang Seng crashed 33% the day it reopened.Wall Street added circuit breakers in 1988.They weren't triggered until Oct 27, 1997, when the Dow fell 554 points and trading ended 30 minutes early. The rules were tightened in 2013, after the breakers didn't trigger during the 2010 Flash Crash.
In March 2020, the first brake tripped 4 times in just 8 trading days.
Now, stocks have also started trading 24/7 on crypto exchanges as tokens and leveraged bets, with none of these brakes.On Saturday, with US markets shut, $51.6 MILLION of leveraged chip-stock bets were liquidated there in just 10 MINUTES, per CoinGlass data.
Chokolinho
Known around here
Well futures are green so far.
About 1/2 the Interwebs are saying we're gonna have a really bad day tomorrow and the other half saying its the start of a big bounce up
Who knows?
I'm sitting on the sidelines with popcorn this week
About 1/2 the Interwebs are saying we're gonna have a really bad day tomorrow and the other half saying its the start of a big bounce up
Who knows?
I'm sitting on the sidelines with popcorn this week
MikeLud1
IPCT Contributor
I will be watching to see if the right opportunity comes to buy SPYM, SPMO, and QQQM so I can finish investing my 401K rolloverWell futures are green so far.
About 1/2 the Interwebs are saying we're gonna have a really bad day tomorrow and the other half saying its the start of a big bounce up
Who knows?
I'm sitting on the sidelines with popcorn this week
Chokolinho
Known around here
Chokolinho
Known around here
Chokolinho
Known around here
MikeLud1
IPCT Contributor
Hard to tell what going to happen at market open, futures are up also premarket is up. We may see the marker open green then quickly pull back.
" Markets are caught between extreme fear and aggressive dip buying. This kind of positioning can fuel a violent move in either direction..."