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SP-500 futures halted Sunday evening, after triggering down-limit circuit breaker rules

The article below is fairly well written for a description of how the current rules function and the connection to last Friday's market activity. My recall is that the limits rules were changed or established after the October, 1987 "quick melt".

ARTICLE

Comments

  • edited March 8
    Bloodbath straight down....anyone shorting tomorrow?...

    Any one buying or thinking buying next few days

    Next few wks could be critical to whole 2nd quater/midyr
  • edited March 8
    @johnN I'm guessing it is a bit late to short.

    Even if I was really good at that, I'm not in the stage of my life to play against the algo machines.
    What say you?

    Hell, you'll be fortunate if you're able to log-in tomorrow morning for a period of time.
  • edited March 9
    Wonder what Buffett doing thinking right now
    Would not be surprised if he buys 40 Bills of XOM

    Dont really knows how to short..just holding on..watching freefalls
  • Buffett is probably sleeping in his bed and dreaming of his legacy. He prefers to buy businesses in their entirety over shares as a minority stakeholder.
  • If the energy slaughter continues I would expect to see a number of companies filing for bankruptcy. I think Buffett is more likely to be a lender of cash, for future considerations of course, to either them or the takeover candidate. Those attempting to avoid bankruptcy are going to have an awfully hard time convincing typical lenders to supply them with any credit or cash. I highly doubt he'll go after any particular company's stock but I am certainly no expert on these things.
  • edited March 9
    johnN said:

    Bloodbath straight down....anyone shorting tomorrow?...

    Any one buying or thinking buying next few days

    Next few wks could be critical to whole 2nd quater/midyr

    I don’t short. Bill Fleckenstein does. As of last week he felt U.S. markets were still “too close to the top” (and prone to a rebound) to short much. He was biding his time waiting for something like today I think. Just my impression based on reading his blog (paid subscription) over the past couple years. So a lot of today’s carnage may be the result of short sellers jumping on the train. They can really push markets around depending whether they’re shorting or covering shorts.

    None of my allocation components has even breached my pre-set perameters. Even if the quarter ended today none would warrant any rebalancing. That said, it’s tempting to want to “do something.” I’m inclined to cut back on fixed income as a “loser” going forward due to bizarrely low rates and to add to equities. In drips and drabs, I’m adding to PIEQX - a Non-North American global developed markets equity index fund. That index hardly looks “bubbly” going back a decade compared to the hot U.S. markets. Lots of great international companies - like Nestle and Diageo. And it’s off well over 10% YTD. You won’t get paid tomorrow. But I’d gamble that in 5-10 years it will reward over fixed income. If I wanted to waste even more $$, I’d start buying PRFDX - which has heavy exposure to refiners. But I lack both the money and the courage. Someone else will have to buy it!:)
  • @hank: With all the scotch that goes down the pie hole here at MFO. I'm sure Diageo will survive !!
    I did a little buying today & will see what Tuesday brings. I'm thinking of taking RMD & buying a bit more.
    Derf
  • IIRC, RPSIX has a 10 to 15% exposure to PRFDX .
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