5 ms·

Would they also circuit break on 7% increase, in order to give people time to come back from positive feelings?

anarazel 7y ago
Looks like it's also on increases, yes: https://www.sec.gov/oiea/investor-alerts-bulletins/investor-alerts-circuitbreakersbulletinhtm.html https://www.sec.gov/oiea/investor-alerts-bulletins/investor-...
- evanpw 7y ago
  Single-stock volatility halts happen in either direction, but market-wide circuit breakers only happen on down moves.
- mattkrause 7y ago
  Limit-up/Limit-down applies to individual equities that are moving strongly in either direction. The market-wide circuit breakers, which triggered this morning, only apply to declines.
- andrewla 7y ago
  The limits for individual stocks are up/down limits, but the market-wide halts are only for declines.
WrtCdEvrydy 7y ago
Of course not... that doesn't help the rich get richer...
codeulike 7y ago
Now thats a really good question.
airstrike 7y ago
No, because if the market is up 50% because we humanity has discovered an immortality serum, nobody is panicking. There's no downside in great news (other than the possibility of a quick reversal thereafer...)
- throwsprtsdy 7y ago
  Piling in on the buy side because of a fear of missing out counts as panicking.
  - airstrike 7y ago
    That's hardly symmetrical to the fear of losing the money that you have already invested – investors feel they have no choice but to sell before it gets worse, whereas in the rally you can always choose not to buy.
    - throwsprtsdy 7y ago
      > That's hardly symmetrical to the fear of losing the money that you have already invested... It's pretty symmetrical. Choosing not to buy is not as easy as it looks, when you are under pressure to do so. Madoff took advantage of this. The crash of 1929 was preceded by unhinged buying.
    - sm2i 7y ago
      Actually, i think it is symmetrical. The fear of missing out on making a ton of money is just as scary for a trader.
    - totalZero 7y ago
      Short squeezes are akin to declines in terms of the psychology involved.
      - airstrike 7y ago
        The average investor isn't subject to short squeezes... Even better: the percentage split between long and short holders isn't 50%/50%

Looks like it's also on increases, yes: https://www.sec.gov/oiea/investor-alerts-bulletins/investor-alerts-circuitbreakersbulletinhtm.html https://www.sec.gov/oiea/investor-alerts-bulletins/investor-...

evanpw 7y ago
Single-stock volatility halts happen in either direction, but market-wide circuit breakers only happen on down moves.
mattkrause 7y ago
Limit-up/Limit-down applies to individual equities that are moving strongly in either direction. The market-wide circuit breakers, which triggered this morning, only apply to declines.
andrewla 7y ago
The limits for individual stocks are up/down limits, but the market-wide halts are only for declines.

WrtCdEvrydy 7y ago

Of course not... that doesn't help the rich get richer...

codeulike 7y ago

Now thats a really good question.

airstrike 7y ago

No, because if the market is up 50% because we humanity has discovered an immortality serum, nobody is panicking. There's no downside in great news (other than the possibility of a quick reversal thereafer...)

throwsprtsdy 7y ago
Piling in on the buy side because of a fear of missing out counts as panicking.
- airstrike 7y ago
  That's hardly symmetrical to the fear of losing the money that you have already invested – investors feel they have no choice but to sell before it gets worse, whereas in the rally you can always choose not to buy.
  - throwsprtsdy 7y ago
    > That's hardly symmetrical to the fear of losing the money that you have already invested... It's pretty symmetrical. Choosing not to buy is not as easy as it looks, when you are under pressure to do so. Madoff took advantage of this. The crash of 1929 was preceded by unhinged buying.
  - sm2i 7y ago
    Actually, i think it is symmetrical. The fear of missing out on making a ton of money is just as scary for a trader.
  - totalZero 7y ago
    Short squeezes are akin to declines in terms of the psychology involved.
    - airstrike 7y ago
      The average investor isn't subject to short squeezes... Even better: the percentage split between long and short holders isn't 50%/50%