Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (12569)	5/18/2010 8:23:52 PM
From: Tom C	Respond to of 12617

Regardless of the cause, there's no guarantee that stock circuit breakers will help stop severe market drops, independent market analyst Edward Yardeni said. Edward Yardeni!!! Is this the guy who made the huge wrong call on Y2K? If so, when did he crawl out of his bunker and get a job?

To: TFF who wrote (12569)	5/19/2010 6:54:30 AM
From: Eric P	1 Recommendation Read Replies (1) \| Respond to of 12617

I've heard mixed interpretations of the SEC proposal. A 5 minute trading halt anytime a stock is down 10% (between 9:45 AM to 3:35 PM) seems like a bad idea to me, since often stocks will grind lower throughout the day and eventually be down 10-15% with steady selling all day => This is a situation that doesn't need a trading halt. Another interpretation I've heard is that the halt would only trigger for stocks that drop 10% within a 5 minute period. This makes perfect sense to me, and seems a valid situation worthy of a halt. The only thing that might be a problem with this, is if they don't halt for stock spikes higher. In that case, you could have a $20 stock spike up to $24 (no halt), and then encounter a stock trading halt if the spike was to reverse back lower. In any case, I like the idea of a trading halt for any stock that drops (or rises) more than 10% within a time period of 5 minutes. I'm hoping that is what is being proposed.