- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Citigroup Lost $20 Million on Facebook IPO Trades
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- EU Finalizes Bank Reforms; Shifts Burden to Bondholders
- Spain to Inject Emergency 19 Billion Euros into Bankia
- EU Set to Launch Action Against China Over Telecom Aid
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- Marc Faber: Chance of Global Recession Is Now 100%
- Cool Jobs: From Gold Stacker to Bed Tester
- 'Flash Sale' Sites: Gimmick, or Online Shopping Future?
MOST SHARED
- Spain to Inject 19 Billion Euros into Bankia
- Fresh Fears as EU Finalises Reform Plans
- Zero China Growth Is ‘Probable’: Gordon Chang
- Beijing Faces Brussels Action on Telecoms Aid
- Marc Faber: 100% Chance of Global Recession
- Citigroup Lost $20 Million on Facebook IPO Trades
- China Growth Risks Signal Need for Fiscal Action
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Senate Summons Dimon to 'Get to the Bottom' of JPM Mess
- Why Are Greek and Italian Politicians So Bad?
Cash Is "Place To Be" With Oil, Commodities
Text Size 
CNBC Personal Finance Correspondent
 |
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
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
