Good morning.
Its all about the oil. The flash crash in the crude market yesterday has the word-a-twittering. Any number of rumours doing the rounds and there are a ton of conspiracy theories. But if you go back to yesterday's price action it looks like to me like we had a margin ripple affect doing the rounds. First soyoil, then soybeans, hogs and over to crude oil.
Ultimately I think that it was a very thin, holiday market where a few large stops were hit and with the margin liquidation going on around the complex the tidal wave took over and sellers were in charge.
All other reasons are bunk.
It just makes these hedging tools look dubious at best. That is the real damage.
