NYSE invokes Rule 48, braces for volatile open

Chicago Tribune ^ | August 18, 2011 | CNN Money

[NoNAIS]

Rule 48 allows the exchange to suspend price indications that help determine the floor price at the open during regular sessions. Bypassing the requirement helps speed the beginning of trading.

Among the triggers for invoking the rule are “substantial activity in the futures market before the open,” according to the exchange's website.

U.S. stock index futures pointed to a sharply lower open as a report that regulators were intensifying their review of European banks' U.S. units shook up investors.

[COBOL2Java]

When does Obama speak live from the Bus-o-Debt.

He'll have a press conference from Martha's Vinyard, sipping from one of those drinks with a little umbrella and declaring his allegiance to "working Americans".

[WayneS]

With apologies, posthumously, to Mr. Joseph Heller:

'Doc' Daneeka: You got it, that's Catch-22 Rule 48.

Yossarian: Whoo... That's some catch, that Catch-22 Rule 48.

'Doc' Daneeka: It's the best there is.

[WayneS]

With apologies, posthumously, to Mr. Joseph Heller:

'Doc' Daneeka: You got it, that's Catch-22 Rule 48.

Yossarian: Whoo... That's some catch rule, that Catch-22 Rule 48.

'Doc' Daneeka: It's the best there is.

[GonzoGOP]

Punched through 11,000. Watch for a small uptick as the short covering kicks in.

[the invisib1e hand]

early indications reflect the standing orders held by market makers.

if there aren't many, or any, then there really can't be any early indications, can there?

[scooby321]

Gold up over 33 Dollars today.

Dow is now down 500 Points

Obama have a nice time on vacation

[GonzoGOP]

He'll have a press conference from Martha's Vineyard, sipping from one of those drinks with a little umbrella and declaring his allegiance to "working Americans".

Obama: "Everyone I have had contact with is doing well. Because if they are not doing well they do not have contact with me."

[NeoCaveman]

“How long will the one engine last?!?!? All they way to the scene of the crash!”

We should beat the paramedics there by a good half an hour.

[NeoCaveman]

When does Obama speak live from the Bus-o-Debt.

Debt Man Talking.

[GonzoGOP]

Dow is now down 500 Points

Back to only -432. That is the short cover kicking in. By 10:30 Eastern we will know what this market is actually going to do today.

[concerned about politics]

Quick! Invest in food stamps!

[NoNAIS]

Exactly What is ‘Rule 48′ http://blogs.wsj.com/marketbeat/2010/05/20/exactly-what-is-rule-48/ ------------------- I think of it as a bandage to slow the bleeding process. Once the scab forms (normal investors don't see the panic right away), then the Market will form a clot (hopefully preventing the infection of panic).

[Huck]

QE3 will be on its way shortly.

[NeoCaveman]

QE3 will be on its way shortly.

[JustAnotherOne]

From Wall Street Journal-
“BY KELLY EVANS

The recent surge in money supply is flashing a warning sign. Ironically, it is a deflationary one.

On Thursday, the Federal Reserve will issue its weekly update on a slew of monetary indicators and bank-loan data. Typically, these aren’t market movers. But a sharp recent increase in the money supply has raised some eyebrows. The benchmark M2 gauge of money supply, which includes cash in circulation plus bank deposits and retail money-market funds, jumped by $159 billion ...”

This is NOT panic. The fundamentals of money supply does not change. This is capitulation. French banks will fail. Greece, Portugal, and Italy are insolvent and must liquidate.

[Michael Barnes]

Not too long now...10-289

There's already smaller banks goin' Galt.

[John W]

So, now that its -486 at 10:43 AM, what do we know about what it is actually going to do today?

[GonzoGOP]

So, now that its -486 at 10:43 AM, what do we know about what it is actually going to do today?

It didn't immediately head back down. If it was a true panic then as soon as the shorts were covered you would have seen an immediate move back down. We now have a trading range on low volume. It will probably stay in that range until one of the talking heads comes on TV. If there isn't any news and Obama stays on vacation expect a close around 11,000 for the day. If Obama comes out of his ice cream shop and proposes more taxes and regulations then expect a continued drop.

[John W]

That makes sense. Of course, everyone knows as long as he is president just that very fact means more taxes and regulations no matter what he says or even if he shuts up for more than twenty-four hours (doubtful).

[GonzoGOP]

Of course, everyone knows as long as he is president just that very fact means more taxes and regulations no matter what he says or even if he shuts up for more than twenty-four hours

There are still a lot of people who want out of this market. But for the moment at least they are willing to wait for a better price. Yahoo has a good chart that shows not only the price, but the volume of sales. The upticks are on low volume, the down ticks are on high volume. They don't want to take the hit ans sell below 10,900 but as soon as the price gets close to 11,000 they start pulling their money back out. If they thought more bad news was imminent they would take the hit and pull the plug at whatever price they could get.

Think about it like a fish market. In the morning the guy at the table will haggle with you because he figures if he doesn't get his price from you he might be able to get it from someone else. But at five minutes to close he is either going to close the deal or get stuck with the inventory that won't be any good tomorrow. So he will take whatever price he can get.