- What to Expect From Disney Earnings?
- HP's Shot Across Cisco's Bow
- USC Football Blog Leads All-Access Space
- Clowning Around At Work
- Ahead of Earnings Disney Restructures Studio
- Nov. 11: Unusual Volume Leaders
- 3 'Clear Sailing' Mid-Caps For Investors: Strategist
- Intimate Apparel Sales Heating Up: Maidenform CEO
- A Day On The USS Harry S. Truman
- Dollar Trouble, Oil's Bubble Could Derail Recovery
- Jobless, Wal-Mart to Drive Sentiment on Thursday
- Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
- AIG CEO: I Remain 'Totally Committed' to Firm
- CNN Anchor Lou Dobbs Says He is Leaving Network
- A Day on the USS Harry S. Truman
- How the Droid and Google Threaten the GPS Makers
- Commercial Real Estate Near Disaster: Fund Manager
- This Town Will Pay YOU $10,000 to Buy a House
MOST SHARED
- Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
- How the Droid and Google Threaten the GPS Makers
- Dollar Trouble, Oil's Bubble Could Derail Recovery
- USC Football Blog Leads All-Access Space
- HPQ to Acquire 3Com
- Shopping for Answers
- Addicted to Easy Money?
- Credit Is Thawing, But Businesses Still Hesitant to Borrow
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
- Bernard and Ruth Madoff's personal possessions will be auctioned this weekend. Click ahead to see.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- An Italian cashmere maker aims to make profits while creating ideal conditions for his workers.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
- The real result of health care reform will be bloated government and higher deficits, says Larry Kudlow.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
Data is a real-time snapshot *Data is delayed at least 15 minutes