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Why is much of the market getting crushed today?

is this just a bad Monday?


  • Nope. Everyone is worried about variants of the virus in England and South Africa where the vaccine isn't nearly as efficacious in terms of treatment. South Africa is the bigger concern right now.
  • edited January 2021
    It doesn't appear that the market is getting "crushed".
    MarketWatch percentage change info for today:

    Nasdaq +0.41%
    S&P 500 +0.13%
    DJIA -0.28%
  • And a little irrational exuberance for BB...up 30% today...173% over the last 3 months.
  • Actually, the closing market was up for me, just a couple hundred.
    ron said:

    is this just a bad Monday?

  • @Observant1 Same here. +0.07% on the day, Monday, 25 January, 2021.
  • - .01% on the day.
    Stay Safe, Derf
  • ron
    edited January 2021
    It seems to be affecting the whole market not just games or hedge funds and shorting.
  • edited January 2021
    S&P 500 and NASDAQ are down 2% on Friday. Gold and bonds are doing ok. This has been a wild week.
  • Pullbacks are healthy for the market. And we hadn't had many down days lately.

    Some sectors could go down a LOT MORE from here and still be considered overvalued.
  • beebee
    edited January 2021
    A few links related to Reg SHO, Shorting, and naked shorting.

    What Is Regulation SHO?
    Regulation SHO is a set of rules from the Securities and Exchange Commission (SEC) implemented in 2005 that governs short sale practices. Regulation SHO established "locate" and "close-out" requirements aimed at curtailing naked short selling and other practices. Naked shorting takes place when investors sell short shares that they do not possess and have not confirmed their ability to possess
    SEC Key Pints of Reg SHO:

    Naked Short Selling:
    “Naked” short selling is not necessarily a violation of the federal securities laws or the Commission’s rules. Indeed, in certain circumstances, “naked” short selling contributes to market liquidity. For example, broker-dealers that make a market in a security[4] generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks as there may be few shares available to purchase or borrow at a given time.
    Is SEC Effective in Regulating Naked Shorts?

    Patrick Bryne's Deep Capture Blog:
    In 2005, Patrick began a vigorous campaign against corruption in our capital markets through securities manipulation. His stance quickly caught the attention of Wall Street analysts and reporters and remains a point of high controversy today. The Deep Capture website grew out of this campaign.

    Deep Capture Presentation:

  • A term referred to above left me wondering for a long time: what does it mean to "make a market" in a particular security? It means 5% or more ownership (or trading volume, perhaps, too?)
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