Limit Down
Oct 24, 2008
Posted by Jody Eisenman | Filed under Uncategorized
Although the US stock market opens at 930 AM New York Time, The futures market, which is an indication of how things will open, actually trades earlier. In order to prevent a systemic meltdown, regulators have put limits as to how far these futures can trade in one day. The current limit is 6.5%. We have now traded down to this limit pre opening. This is very unusual, and a sign of complete panic in the market. If, when the market opens, we trade down by more than 10%, trading will be halted for an hour. Here is a link to the NYSE website:
http://www.nyse.com/press/circuit_breakers.html
Although I will talk a lot more about this situation over the weekend, there are 2 very troubling items to me:
- As previously discussed, layoffs are beginning to spread throughout Main Street. This will obviously impact the economy in a negative way.
- Unlike previous severe market declines, I am not seeing a widespread amount of corporate buybacks. That is to say, despite the severe declines in stock prices, companies and executives are not, by and large, stepping up to buy their own stocks. This lack of a vote of confidence is rather troubling.
We are now in a real panic mode. Where the bottom lies is anyone’s guess right now.
October 26th, 2008 at 5:25 pm
The layoffs and bank ownd homes in vegas has the strip crazy.
Hotels aren’t beeing finished .
Last night I took my family to dinnen at THE WYNN and it was very slow ,after dinner the drive home was 20 min insted od an houre on a saterday night.