Nobody has missed the Glencore move today. The stock is in free fall mode after subpoena by the US DOJ. It is related to Foreign Corrupt Practices and Act and US Money laundering statutes. As Bloomberg writes:

The DOJ usually issues subpoenas when it is investigating a company. In December, a Swiss court ordered companies controlled by Gertler to hand over bank documents to U.S. Federal prosecutors.

“Given the flow of negative news we’ve had through the course of this year, the knee-jerk reaction is worse than it otherwise might have been,” Hunter Hillcoat, an analyst at Investec Securities Ltd., said by phone. “The DOJ fines can be big, but to wipe out 10 percent of the market cap would be bigger than any fine I can recall.

For more reading visit the Bloomberg article.

The stock is falling violently and is now well below the 200 day average. First big support level is around the 300 mark.

Volatility is exploding and implied volatility trades at levels last seen 2 years ago.

Source: charts by Bloomberg