Sunday, August 7, 2011

In the Event of a 3600 Point Decline on Monday, The NYSE Will Close for the Day (DIA)

...When in doubt, go with the most hysterical headline.
(Rule one of blogging is that the End Of The World will be good for page views.)
-Joel Achenbacher
The Washington Post

From Forbes' Street Sweeper blog:
We all know the routine for this week’s stock market: fasten your seatbelts.  This is going to be a bumpy ride.

However, what many investors have forgotten is that about a year ago the Securities and Exchange Commission (SEC) responded to the Flash Crash by implementing a series of new market circuit breakers to provide a first line of defense in the face of massive price gyrations.  Read First Things’ First: Stock Circuit-Breakers in Place (June 11, 2010). As I noted in that article, ” Thankfully, someone at the SEC ran for the fire extinguisher before the small brushfire consumed the entire market. Kudos to Chairman Schapiro and the SEC.” ...MORE
HT: The Reformed Broker who goes all fiduciary on us:
...Educated guesses range from Relief Rally to End of Days but as I've been saying, most people are better off letting the speculators have at it and hugging the sidelines....
What to Expect on Monday: The Box
Markets: What to Expect Monday Morning