{"id":977,"date":"2008-10-01T07:05:55","date_gmt":"2008-10-01T11:05:55","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=977"},"modified":"2016-09-20T03:42:42","modified_gmt":"2016-09-20T07:42:42","slug":"why-didnt-the-circuit-breakers-hit-monday","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2008\/10\/01\/why-didnt-the-circuit-breakers-hit-monday\/","title":{"rendered":"Why didn&#8217;t the circuit breakers hit Monday?"},"content":{"rendered":"<p>Do you remember a time that when the market was down 100 points or so the trading collars would &#8220;kick in&#8221; to provide a relief from any unusual movement? How about the often discussed recession of the up-tick rule for short selling?<\/p>\n<p>Each of these mentioned (and surely others) are all in the investing hall-of-fame, retired and all but forgotten. They served a purpose in their time, but have been relegated to the scrap heap with other ideas that had &#8220;no verifiable&#8221; benefit.<\/p>\n<p>So, now, we are stuck with a only a 1\/2 hour trading stoppage for a 10% drop (see chart below). Notice the lack of a 2-minute rule as we have with football for market declines after 2:30pm for a <em>mere<\/em> 10% drop. Good news though&#8230; if the DJIA is down 20%, the market will close if it is after 2:30pm.<!--more--><\/p>\n<p>Do you think the removals of the trading collars and the up-tick rule have helped to exacerbate the recent market gyrations? <em>Thanks to the <a href=\"http:\/\/online.wsj.com\/article\/SB122279972314591237.html\" target=\"_blank\">WSJ<\/a> for this excellent graphic&#8230;<\/em><\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/online.wsj.com\/article\/SB122279972314591237.html\" target=\"_blank\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-978 aligncenter\" title=\"circuit_breakers\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2008\/10\/circuit_breakers.gif\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you remember a time that when the market was down 100 points or so the trading collars would &#8220;kick in&#8221; to provide a relief from any unusual movement? How about the often discussed recession of the up-tick rule for short selling? Each of these mentioned (and surely others) are all in the investing hall-of-fame, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12],"tags":[483],"class_list":["post-977","post","type-post","status-publish","format-standard","hentry","category-markets","tag-markets","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=977"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/977\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}