As far I can tell, trading has not resumed. I thought the rule was to pause trading for 15 minutes if a level one breach (-5%). Is it going to stay halted until stock trading resumes Monday? What does this mean for options? The time is 12:11 AM New York time and no activity. Are they going to close the whole market Monday, because they would be the only way to stop the bleeding, since there are 500 stocks. Even if you stop the derivatives, the index is tied to stock performance. If those go, so too will the index, and thus, the futures when they resume.
It appears to me that it came off limit down at 11:12 ET, ramped 10 pts higher, then fell right back to the original limit down. Meanwhile crude is down 32.5% since Friday close.
There isn't enough bid in NQ, ES or RTY right now to lift it. If not enough bid it won't go up. The Dow Jones is currently trading slightly above it's limit down. EDIT: At re-open tomorrow there's a 7% (15 min halt) 13%(15 min halt) and than finally a 20% limit down.
The CME rulebook pertaining to price limits... https://www.cmegroup.com/content/dam/cmegroup/rulebook/CME/IV/350/358/358.pdf We are here at the overnight 5% limit down... "2. Application of Price Limits from Start of Trading Day to 8:30 a.m.From the start of any Trading Day until 8:30 a.m., there shall be no trading in anyfutures contract for a given delivery month at any price that is either strictly lower than or strictly higher than the range defined by the 5% Price Limits (Rule 35802.I.1.) applicable to such futures contract on such Trading Day.Without limitation to the foregoing, the start of any Trading Day generally shall coincide with the start of the CME Globex trading session at 5:00 p.m. on the evening first preceding such Trading Day. If the Primary Futures Contract Month is limit bid or limit offered at 8:23 a.m. and remains limit bid or limit offered at 8:25 a.m., then futures trading shall halt and remain halted until 8:30 a.m. Prior to reopening of Globex trading in futures at 8:30 a.m., the Exchange shall provide indicative opening prices in accord withRule 573"
This seems shady and unethical. Basically, the house always wins. The mantra being, well if the bottom falls out we'll $%@ the shorts and Limit Down State them the #$@ until the market comes back they are .... you know. So why offer put options in the first place on indices if they don't want them to fall? "A fair and orderly" market. Nothing could be more inconsistent with fair and orderly than to pull these kinds of rules
You must be a millennial baby who thinks the world began the day you were born. These rules or some variation have been around since after the 1987 crash. If you are short, suck it up... you won't be able to bottom tick it! BUT... there is nothing stopping you from taking your marbles right now. There is no inconsistency.
And the fed was waayyyyyyyy toooo quick to cut rates by 50 basis points last week. Fools. They have no where to go now, I talked about this for years, they should have prepared for this collapse but they didn't. Everyone thought this was going to be a 20, 30, 40 year bull market....now look. The entire global market is collapsing. Any rate cuts from here will only cause panic and once a recession is here they will have nothing left to keep wallstreet happy. Oops
It is actually the longs who are fucked when it locks limit down, you cant get out of your long position. But you can get out of a short position.