- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- Abu Dhabi Will Aid Debt-Fraught Dubai 'Case by Case'
- Banks With The Biggest Exposure to The UAE
- Dubai's Debt Woes Signal New Era for Creditors
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- Tiger Woods Out of Hospital After Accident
Text Size 
 |
CNBC.com |
"This is big. It's a serious unwinding," says Addison Armstrong, director of research at TFS Energy. Liquidation was rampant across the board in the energy complex--with gasoline and natural gas down about 7 percent, heating breaking its record-setting streak by falling 3 percent just 15 minutes before the end of the open outcry session. "It's a run on the bank," Armstrong says.
And here's why: If you're an investor getting hit on all sides, you want need to access money quickly--particularly if you have to cover margin calls in other investments. So the thinking is, let me get to that money and get it out. Liquidate profitable positions in oil, energy and other commodities.
Even gold is well off its highs of the day. It hit a record $1034 in the wee hours of the morning, but is barely holding above $1000 right now. Still the bullion is seen as the best inflation hedge.
So what happens next? Traders are bracing for more heavy selling in electronic trading after-hours and into tomorrow. Volume is very big today and the selling was broad-based.
But after today's rout, some floor traders say they're more likely to stay to the sidelines than stick their necks out again. Says Citi energy analyst Tim Evans: "It's increasingly looking like cash is the place to be."
Questions? Comments? energysource@cnbc.com
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
Data is a real-time snapshot *Data is delayed at least 15 minutes