That's what I was hinting at or trying to derive, with the scenarios laid out for valid fundamental news vs. invalid fundamental news. I think it may give some people a fighting chance of getting out though. I've seen stocks get killed all the way down to zero, and it took less than 5 minutes to do it. The false news on UAUA a few years back and that thing was hammered to 0 in no time, and it was fake fundamental news. Imagine if you had a GTC stop that got triggered by that move. You'd be furious as a retail investor.
============= Good gap points,Range /Trender & Seaside hights; some do like those That rule may be a good thing; 10% per 5 minutes-thats 100% down in 50 minutes ,cash[S&P measured, rule states] ...
I like this better than the current 10% rule. The current rule is if a stock moves 10% in 5 minutes it is immediately halted. Now with this rule the stock can trade for 15 seconds before it gets halted. The 5% only applies to the 1000 largest cap stocks and high volume ETFs. As a scalper I now have an extra 15 seconds to take advantage of those price spikes. Some stocks make stupid moves from either fat fingers or algos gone awry. I like this. 5% or 10% isnt what Im focused on. I now have 15 seconds vs none to trade with or against said moves. This is huge in my opinion. 15 seconds is an eternity. I can't wait.
How right you are, but unfortunately if regulators don't regulate, they have no reason to exist. And regulation pays quite well, as a quick glance at the income levels in counties surrounding D.C. will attest. I'm trying to think of any part of my life that is not now impacted in some way by federal regulations. I'm having trouble coming up with any. So, regulators will continue on their merry way until everything comes to a standstill. Right now we can all feel the brakes being applied. Slowly but surely. Grinding, grinding to a halt.
SEC is a joke. Look at the repeat offenses and what continues today. http://www.nytimes.com/interactive/...epeat-Violations-Despite-PromisesStsssss.html
I don't mind having Circuit Breakers in place, but volatility is a function of the marketplace. The SEC can't tell investors when to buy and sell!!!!!
================ Good points; especially since it sounds the intent of that SEC rule is avoiding fake flash crash quotes.But I am still thinking about thier strange use of the word ''fundamental'', in this rule.LOL It maybe even a good rule; meaning who wants PIGS or a whole herd of PIGs jacking up a penny stock like Citigroup 100% in less than 50 minutes.[which split 10 times/reverse,so its still a penny stock even if it doesnt look it.] So after thinking technicals & fundamentals about this for 10 minutes;C & BAC deserve thier 1 year downtrends. That new 10 minute SEC rule , I am liking more all the time.
Another of the "be careful what you wish for" category changes from the SEC. Let's just put stock prices on the shelf at WalMart, you can by GE or sell GE at the same price for 30 days.... don't want volatility do we? Right? Right? Hello? I've been called a "liberal type of guy" in some ways... but never when it comes to FREE MARKETS - that's why they're called "Markets" Come on Mr. and Mrs. SEC people - think all this through. I would hate to have to go testify in DC as my brother did on other issues. FWIW, Don