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Category Archives: stock market

at the start of the global stock market sell off during october, a number of stock exchanges closed their doors in an effort to halt the crash. russia and indonesia were two of a handful who thought this might be a good idea.

as it turns out, it wasnt exactly the brightest move.

after closing for a day or so, they both opened only to crash even harder than they had before.

so they were closed again. but this time for a few more days.

and it crashed even more after it opened.

russia closed its market 20 times in the month of october alone,… and it didnt do anything to stop the slide.

i would argue that it actually made things much much worse, and here’s why:

traders are already losing money, but traders will generally still keep money in the market to some degree, because they know that if it does really get very very bad they can always pull it out tomorrow,….. ever the optimists.

when you close an exchange you basically say “no, you cant take it out until we say you can”

alot of traders are playing with borrowed money, infact the majority of traders are playing with borrowed money. so by locking up the bourse you are locking up their cashflow which is what leads to the massive sell out the day the bourse opens up again.

closing the bourse could have the effect of making the market more volatile rather than less.

what? close it so traders can regain their senses?

hahahahahahahahahahaha!

no such thing.

the panic may be greater.

its like this,….

you’ve got the choice of either

a) being cut a thousand times and slowly bleeding to death, with the hope that you might survive, but you know you will probably die,

or

b) we’re gonna slice your head off in one swift move.

which one would make you kick and scream more?

there is only one law on the markets, and that is that traders and investors are not rational.

so stupid idea or not?

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bloomberg kse closed

according to bloomberg.

thank you Ansam

apparently it is closed until november the 17th which is the date that the court will convene again.

so yay! me,… 3 day weekend!!!

whoohoo!

there are no trades tacking place or going thru right now.

and the website isnt loading.

i know the courts were meant to decide today on whether or not they would close the KSE.

it looks like they might have closed it down.

oy vey,….

they walked out again today, just as i was picking up my coffee.

i managed to preserve their moronitude for ever and ever on youtube.

serves them right for disturbing my morning cupa joe.

ooh and one guy had a bullhorn,…

so he could yell extra loud,…

appreciate the irony:

a guy who made a decision to trade the market,…

loses money,…

decides to sell and realize that loss,…

and now decides that he is the best person to tell the govt what they should or shouldnt be doing, with his track record of decision making.

oy vey

run my lovelies,….

not being leveraged is a wonderful thing.

ummm yeah,…

i’m sure half the people in the markets didnt know they had limit downs, myself included.

a limit down basically means that the futures have traded down to a predetermined limit beyond which no further trades are allowed until the market opens.

its looks like today is going to be another historic mess on wall street.