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 : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (15400)	4/1/1998 8:57:00 AM
From: bobferg	Read Replies (1) \| Respond to of 68187

>The circuit breaker levels will be reset to fixed levels quarterly in conjunction with the NYSE on the first day of January, April, July and October.< It means the big boys are quietly widening the exit doors. Use that statement in concunction with this one: >Under the CME plan the actual price limits would be set by first calculating a 10-percent coordinated price limit level rounded down to the nearest 10 points. For example, if the average price of the S&P 500 lead futures contract during the previous month were 1054, the 10-percent coordinated price limit would be set at 100 points.< What they are saying is this...because the market is constanty moving then so are the 10 & 20% limits. To avoid daily confusion they are going to fix/convert the % limits to points limits, on a quarterly basis, on the first day of each new calander quarter based on the average price of the preceding month. So, as a rough/shotgun estimate of the limits, take the 20day ma of the sp500 on the first day of January, April, July, and October, times 10% and 20%. Those limits would then be fixed/at that level for the entire quarter. 20% daily limits! I can hardy wait to catch one of those, three times as much fun as the last October smash eh?