Collateral Damage

What you saw in the crude oil pits was capitulation.  The speculators all tried to squeeze out the door at the same time and today is what you get.  The selling spilled over to the stock market.  Asset classes are related, and when hedgies feel the heat on their crude position, they lighten up the load on their other inventory.  Its collateral damage.  Over 500,000 contracts traded in NYMEX May crude futures, that is way above the normal volume of about 300,000 contracts on the front month.  It looks like a Liquidation Tuesday, expecting a strong rebound tomorrow intraday.