Crude oil markets are also particularly vulnerable to a downtape, TD Securities senior commodity strategist Daniel Ghali notes.

Trend-followers to liquidate -40% of their positions

“While the downside in crude markets has remained relatively tame over the last weeks, a downtape could now force trend-followers to liquidate a massive -40% of their max size, suggesting the window for large-scale algorithmic liquidations is now open.”

“With our gauge of global commodity demand trending notably lower, we expect downside pressures to continue to build without an additional boost to supply risk.”