What increase would trip the Toronto Stock Exchange breakers?
The TSX (and U.S. markets) do not have circuit breakers that trip on gains; they only kick in if downward movements hit a certain level. The TSX’s downward circuit breakers are linked to the New York Stock Exchange and movements in the Dow Jones industrial average. Currently, if the Dow drops 700 points, a short halt will take place on both exchanges. Longer halts kick in at 1,450- and 2,150-point drops. The only time the Canadian market has its own circuit-breaker levels is on days when U.S. markets are closed and trading continues here (such as last Monday, Memorial Day in the United States). On those days, the TSX breaker levels are 850 points for a short halt, and 1,650 and 2,500 points for longer halts. I’ve often heard that old advice about the stock markets: ‘Sell in May and go away.’ What does it mean, and is it a good idea? Essentially, that phrase means it is wise to sell your stocks in the spring, because the market tends to decline over the summer months and not rebound unt
