Has anyone else noted somewhat eratic opening bids today and yesterday (Tues, Mon).
Today (23rd) on OXR open, there were two massive sell orders (1e6 OXR, and 7e5 OXR) - despite a somewhat positive lead from the overnight metals market . These orders were bought up so the open actually started even from Monday's close.
Same thing with PDN which has come off mightily from $5.50 highs to hit an intraday low of about $3.30 (didn't see market open). But PDN also brought down SMM which I watched - relatively large sell orders on open which were initially dropping the indicated open by 5-10%.
Another example - MRE - even though nickel up 2% last night, MRE opened at $1.90 - 5% or so below yesterdays close.
Now if you read
it sort of makes sense.
People have been abusing the leverage available through (most probably) CFD's. Margin loans are probably not the main culprits as the gearing is generally only about 3-4:1 at best. However with cfd's you can take a position using 20:1 gearing.
On top of this, we have margin calls on the underlying metals market to deal with. Margin calls begat margin calls.
So be careful with your leverage kiddies - rather than being the path to riches, it could take you out of the game COMPLETELY!
 eg. Nymex copper was down very heavily at begining of last nights session, but worked it's way up to finish almost steady.