The Tuesday trade got off to a fast start last evening in Asia/China with both digital metals rallying nicely. In fact, at one point CDG was up over $30. But then here came The Hammer.
In hindsight, maybe the smash was related to news of an impending hike in margins in Shanghai? Maybe. These are 10% hikes and perhaps enough to force some liquidations. But what we can't be certain of is the timing. Did a rumor of margin hikes bring the hammer or did The Hammer fall and the resultant "volatility" bring about the margin hikes? Chicken-Egg. Hammer-Hikes?...
