Don’t Call It A Reprieve.

Don’t Call It A Reprieve.

I'm not sure I'd call it a "reprieve", exactly. After all, Thursday's swings on US benchmarks were large by normal standards, but seemed pedestrian compared to recent volatility. The Nasdaq stuck out like a sore thumb, surging 2.3% (it was up much more), outpacing the broader market by the largest margin since the crisis years. Tesla, Twitter and Netflix all rose at least 7% at one juncture. Gains on Wall Street faded into the close. The Russell 2000 jumped more than 6%. As silly as this mo
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3 thoughts on “Don’t Call It A Reprieve.

  1. Normally, a bounce in Tesla would be good news but it seems there is no longer any marginal buyer of stocks. 401ks will be liquidated, and savings purged as job losses mount. I laughed when a noted Canadian blogger was picking a bottom today, claiming that because such and such big trader was covering his shorts, it must mean the end was nigh. Well, traders don’t pick bottoms, they deal with things as they are. Earlier this week I would have agreed because well, the Fed was coming to the rescue. But the market didn’t buy it, and beyond any gyrations we may see on quad witching Friday, I am stopping all trading. ( also because I have to find more hand sanitizer and basics). Just let that sink in.

    California, one of the world’s largest economies will be shutting down until further notice. Stocks will be sold so people can eat. Possibly anarchy will erupt at some point ( LA could be described as controlled anarchy on a typical day anyway). It doesn’t look good, but perhaps a ban on puts and shorts will slow the market’s decline?

    We live in a country where about half the population doesn’t have the savings to cover a basic emergency under normal times. These are not normal times.

    1. Well Bob you say that you are a trader, imagine banning puts or making half the option market not available (at least on professional side- retail uses calls) What would that do for the market?
      Puts can be sold or bought…

      1. I would never advocate shutting markets or forbid short selling except under the most dire circumstances (meteor strike?). In fact I would argue that the Fed goosing the market with several months of repo QE eliminated short selling for many months and removed the natural ‘buying’ of shorts during the decline. It sure prevented me from going short earlier this year, in a market I knew was grossly over-bought.

        Many people have been hurt, and shutting the markets or other measures might be the only hope they have. Would it work? Probably not.

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