http://www.nasdaqomx.com/volatilityguard/articleview/?contentId=31710 http://www.nasdaqomx.com/volatilityguard
Example: At 1:30 p.m., ET, the last sale eligible trades on the Consolidated Tape for a single security for the past five minutes were priced within the range of $10.00 and $9.50. At 1:30 p.m., any last sale eligible trade to the tape that is 10% or more away from either of the two reference prices of $10.00 or $9.50 will cause a trading pause to be triggered: ⢠A last sale eligible trade at or less than $9.00 will trigger a trading pause. $10.00 less ($10.00 x 10%) = $9.00 ⢠A last sale eligible trade at or greater than $10.45 will trigger a trading pause. $9.50 plus ($9.50 x 10%) = $10.45 http://www.nasdaqtrader.com/content/productsservices/trading/tradingpausefaqs.pdf
This is excellent!!!! If you go back and look at the "low" of March 2009, you will see it is what I call an "artificial" low. IIRC, the DJI was at like 6500...there was this oddball tick at 6469.95 and almost instantly another tick at around 6500 again. This (in my opinion) set off a bunch of trailing stop orders (at market) that is what we now call a "rally." The "rally" began with one of these "artificial" ticks...and now they are going to ban that second tick (the one after the 6469.95) that would trigger the trailing stop market orders that "saved the day!" Hahahahahahahahahahahahahaha. They manipulated the market with that second tick...and they just took their "saving tick" out of the game plan! The new pause will allow the rest of the market to drop like a stone!!! Watch for the coming crash kids! -gastropod