*This blog post is my personal opinion only and contains affiliate/referral links.
Just a quick note that i received an email from Robinhood today at 0028 PST stating:
“In light of recent drops in the S&P 500, there have been market-wide trading halts, triggered by mechanisms put in place by the US Securities and Exchange Commission.
Market-wide trading halts are designed to help stabilize the financial markets during volatile periods. Halts are issued by US equities, options, and futures exchanges and can last 15 minutes or the remainder of the trading day.”
I suppose no one can blame the SEC if they conjure a halt or a pause is a necessary means to control the heavy trading in this volatile time in the stock market. I have to say it only slightly affect my trading because I am not a day trader and i usually buy and hold for profit.
The good news for everyone though is we can still place an order but it will be processed when the halt is over and the market reopens.
The price may be slightly different when an order is placed but given that most stocks are a steal right now, i really think it is an ideal and opportunistic time for anyone to add up to their portfolio.
Disclaimer: i am not a stock expert i.e. i don’t spend inordinate amount of time following the peaks and valleys of the stock market, so please, please don’t take me too seriously when i mention the sectors i think are the hardest hit and therefore the common-sense buy right now.
In random order, 1) airline 2) travel 3) energy 4) restaurant 5) consumer products. These big fives had a good run since the 2007-2009 recession, but due to the polarizing effect of the COVID-19 pandemic, the above mentioned had unfortunately taken a bigger punch on their shares.
If there’s one lesson we can learn from the previous market crash, i think it is that we are operating on a cycle, for some stocks it may take months to gain traction, while others may take even years, but the moral is as long as there is a need for these industries, the more likely these will be poised to recover, sooner than later.