Nikkei Collapses; Closes Morning Session Down 2.7%

Tyler Durden's picture

The Nikkei just wiped out all gains for 2010 in a mere 3 hours. Elsewhere it is not much better: Shanghai down 1.52% and Hang Seng down 1.63% at last check.And speaking of the latter, we were joking earlier that selling breaks all exchanges, but turns out we were right once again. DJ reports:

The compiler of Hong Kong's benchmark Hang Seng Index said Friday it is working to fix a glitch that has prevented index data from updating shortly after trading started.

Hang Seng Indexes Co. declined to elaborate on the cause of the error. Hong Kong stock exchange spokeswoman Lorraine Chan said the bourse has noted the Hang Seng Index has been unable to be updated, and is in contact with the compiler to rectify the problem.

The NKY has now breached the 20 DMA, the 12/22 - 12/24 gap is likely going to be retested very soon.

And here is what happens when all the upside in the market has been on vapors. When the selling starts... it really STARTS. Futures volume today was unprecedented. Unless the overnight futures brigade manages to decelarte this reversal, it will get very ugly, very fast.

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GlassHammer's picture

So triple digit down day tommarow?


Anonymous's picture

I am sure the Plunge Protection Team is getting warmed up...worry not.

MsCreant's picture

Nah, they will declare the whole thing a computer error and have a big do over. No sweat, make everyone whole again.

Cistercian's picture

 Tyler is right...the system crashes only on down days.That is a story in it's own right.I would like to see the outages/volume/direction presented graphically.

 As if I would be surprised.

 Correction imminent?I say no.Try crash.EPIC FAIL

 The bankers are already holes anyway Ms.There is no need to make them hole.Oops...spelling error mistakeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

null command

system crashhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

Anonymous's picture

Buy Buy Buy!!!

RoastingBankers's picture

buy the dips!


to the moon!


signed leo

Cursive's picture


There's never been a better time to buy Chinese Solar Stocks.  Back up the truck!  Boo-yah! (fade to bulltard memorial service....)

Anonymous's picture

leo needs to take the red pill.

yeh gold is a terrible investment.

Mr Lennon Hendrix's picture

It goes now!  This is the last pullback before the great hyper-diaper-inflation-nation comes home to roost.  

I think the oligarchs got together and said exactly that.  Now is a buying opportunity for worthless stocks and precious metals.

Charley's picture

Need to rule out other causes - including petulance over Obama's now found populism...

johngaltfla's picture

Give me a

R - "R"

Give me an

E - "E"

Give me a

C - "C"

Give me a

O - "R"

Give me a

V - "A"

Give me an

E - "S"

Give me a

R - "H"

Give me a

Y - "!"

What do you have?

We're f'd.

Anonymous's picture

my name is leo and i love equities....

Anonymous's picture


Mad Max's picture

WWCD - What Would Cramer Do?


Missing_Link's picture

He'd scream a bunch of unintelligible gibberish at the top of his lungs and then hit a bunch of buttons that make funny noises.

Mr Lennon Hendrix's picture

Buy Buy Buy wheres my gong I love china erin burnetts tits buy buy buy!  this is a bull this is a bear weeoo weeoo buy gld i am an illuminant my charitable trust i went to harvard used to run on GS I worship satan buy satan buy satan!!!  

Handle with care's picture

He'd make a massive slew of mutually contradictory predictions, then go back later and point out which ones were correct

10044's picture

now the "real" safe haven GOLD is up when the markets are down, and that's how it's supposed to be. unfortunately during US hours we have the PPT scums who rig the markets and pretend 'paper' gold is real gold.

ghostfaceinvestah's picture

Don't forget naked shorting of gold by issuing 100x the paper certificates that they actually hold in physical, thereby fucking up the supply/demand equation.

Anonymous's picture

yes the yellow metal is up all of $2 at 22:16:56 on Thu January 21 2010

ghostfaceinvestah's picture

These markets can't think on their own, we go up, they go up, we go down, they go down, didn't you have a post on the correlation a few months ago?

Why do they even bother with their own stock markets these days, just have a 24 hour market for all stocks, with all the stocks priced in gold.

lizzy36's picture

HSI fixed now....down 2.8%

deadhead's picture

thx lizzy.

invading canada would make most americans feel much better about obama.

Colbert is after you guys big time, watch out!

Anonymous's picture

Morgan Stanley indicates that the Yen is the favourite currncy to short

deadhead's picture

Unless the overnight futures brigade manages to decelarte this reversal,

aaah, yes.....

does the street decide to throw a snit as they have done previously and just let her go south as part of the "world will end if we don't get our way" shot across the bow?  this is a tried and true strategy and hey, if you think about it, there is a hell of a lot more juice to be squeezed going from 1150 to 850, say, than 1150 to 1450, know what I mean?  they could drop that spx bugger in no time with a little fear and make a fortune.  it would be easy to drop it 300 pts and even the most bullish of bulls would admit running her up another 300 points in a month might be a bit too tall of an order.


tonight's eminis action ought to shed some light on this as well as what strategy helicopter boy is going to adopt to the threat on his continued employment


ghostfaceinvestah's picture

dh, did you see my comments earlier, where the fuck was Heli Ben today, I didn't see him at the press conference, was he there and I missed him?

Awful strange if he missed it, given he is the main regulator of the BHCs and all.

deadhead's picture recollection is that the Fed chairman is rarely seen with Presidents on these matters as a matter of protocol and the whole "independence" thing.  I cannot say this with absolute certainty but I think that this is the usual case.  perhaps someone else can confirm, rebut.

i would point out that Austin Goolsbee seems to have been reincarnated along with Volcker....keep an eye out on the Goolsbee dynamic, it could be telling.



Psquared's picture

Must be a big treasury auction coming up and they had to generate demand.

BigBagHolder's picture

Hmm... stocks are flat on YTD. 

Every one ZH is cheering, feeling vindicated.

Gold is down 10%, dollar is up 5%, oil is down 10%, rates are low.

Hmm... call me when we break a 10% correction on some major event.  Otherwise, 1400 YE then 1600 YE 2011.  Steady recovery is pretty much in-place.

rootless cosmopolitan's picture


what do you think, where is this "steady recovery" going to come from this time? Are households and private businesses (w/o financial institutions) going to load another 25 trillion US-dollars of debt onto their balance sheets over the next 10 years? A doubling of private debt in US every ten years has been the fuel for economic growth in US and the world economy for the last three decades. Can they do it again?



lizzy36's picture

Every one ZH is cheering, feeling vindicated

I don't think vindication plays into this issue. 

More importantly, how do you justify you 1400 YE and 1600 2011 YE targets.  Please enlighten, what sort of steady recovery are you seeing (housing, employment)?

Cistercian's picture

 Don't be a party pooper.Tents are a big growth area, as are portable cook stoves.With the apocalyptic rise in homelessness due to job loss and concomitant loss of housing, more people are living in parks than ever before!

 Everything is perfect.Just because the record number of unemployed won't be buying anything is no reason to suspect a domino effect of dependent businesses failing.Life is good. might have a point.


 Ok...we are truly screwed.


Anonymous's picture

bigbag, i think you are being foolish. There are numerous signs of a serious top, it just took a while to actually happen. On a very simple technical basis, we have already violated the third fan from the 3 fan rule. the volum has been awful, there are a ton of technical divergneces, and a weekly MACD cross, as well as the leading markets of china and gold already having significant corections.

Anonymous's picture

In financial markets as in child psychology, one must learn to appreciate the difference between a tantrum and a correction.

Tomorrow, a simmering pout.

Dulces sueños,
Señor F.B. de Abarca

Dirtt's picture

But they have been giving the child anti-depressants since around spx 850.  And the damn brat is getting a tolerance.

Anonymous's picture

How about this for a strategy. Pump equities up up up. Then deflate significantly before the year is up. Wouldnt this cause people to sell equities and buy treasuries with what cash they have left from equities. Then perhaps uncle s could tax them for the short term gains while getting the investment as well. burn the candle at both ends. Has everyone got their bonuses yet?

Thalamus's picture

The PPT is discontinued for awhile as punishment for defaming Kennedy's seat.

Chopshop's picture

what is the "DMA" ... i can't find it in any of my technical analysis books.

do you mean the daily SMA ?

if so: then say / label / notate it the correct way ~ "the daily 20-SMA"  ....  OR  .... say "the daily 20 SMA".

that's it; real simple ... and then you'd be accurate instead of regurgitating incorrect nonsense that only retail folk spew.