Possible Market Closure

tom

tom

Well-known member
Administrator
I just got an email from Maverick Trading about possible market closures. I thought it was important for you to know about this:

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Hi Traders,

We are living in unprecedented uncertainty with the Coronavirus and we have already seen sports closures, travel closures, festival closures, conference closures, etc. As the markets move lower, we believe there is an increased possibility of a total stock, bond and FX market closure like we saw for 4 days after 9/11.

Personally, I think there is a high possibility it could be as soon as tonight.

If it happens, they will likely close the markets until the threat of the Coronavirus contagion is under control. In this situation, we see there could potentially be more risk to bearish positions.

If the governments around the world decide to close markets down until the situation improves, the markets could potentially gap higher 25-30%. If the situation is worse than expected, we could see the same move in the opposite direction.

We wanted to send out a message firm wide so all our traders could look at their own personal trading accounts (stock, retirement, FX, etc) and plan for this possibility. The safest thing is to be in cash and stay in cash until this volatility passes.

For traders trading firm capital, we will be reaching out to you on an individual basis if we see any trades that could be too risky in a market closure. We will be sending out increase communication during this volatility.

Be safe out there,
Robb Reinhold
Maverick Trading
 
Thanks Tom.
This is potential developement that has to be taken into serious consideration if one has significant risk anywhere in the market.

I afraid that Corona excuse is just as fig leaf.
 
Not sure about other markets but the NYSE will stay open according to the NYSE president on an interview on CNBC
www.cnbc.com

NYSE president Stacey Cunningham on why she's not closing the New York Stock Exchange

NYSE president Stacey Cunningham joins 'CNBC' to discuss why the New York Stock Exchange is staying open.
www.cnbc.com www.cnbc.com
They may close the floor but they can still do electronic trading
I think it's better if it stays open so traders have a chance to adjust their trades even though it may be a loss It also gives trader a chance to buy at very low prices which you may not see once it gaps up after staying closed for a long time
The 9/11 was a different situation because in that case they did not have the capability to trade
The only issue is fear of the unknown which is not a reason to close the market I am sure if no one heard about this virus we would not be this low
 
Thanks for link. She sounds reasonable.
My concern is not the COV-19 though.
This event we are going through is capable of flipping over the whole system.
Our economies are based on debt. Sooner or later this has to end (in opinion of some, including me). The end won't be pretty.
Fed and others throwing kitchen sink to divert this event. So, we have market forces pushing prices down and banks trying to inflate (mouth-to-mouth) debt_based_economy. This is one of the reasons we have such big swings. Some say swings can grow to even 50%+ per day...
Anyway, shutting markets can be a treated as a tool to give banks more time to prepare for whatever they are planning to do or simply to delay speed of deflation.
 
I just can't believe people are so panicked over this stupid little bug
While it should be a concern the reaction in my opinion is way overblown because of the media hype
We did not have a complete shutdown of everything with the previous deadly diseases
 
I heard on CNBC that they will close the NYSE floor starting Monday Mar 23rd because one of them tested positive for the virus
so they will have all electronic trading
Let's see how that will work out
 
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