Rumor Nikkei To Remain Closed For Rest Of Week On "Margin Issues"

Tyler Durden's picture

Copy/paste of what we got from a trading desk:

Mkt rumour nikkei to remain closed for the rest of week..margin issues.....some rumbling all afternoon, but as we head towards the end of European trading more people asking

More if we get it...

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EscapeKey's picture

What are the odds the DJIA will end green at the end of the day?

Johnny Lawrence's picture

Seriously, right?  Only down 1.6% now.  What a crock of shit.

Zero Govt's picture

zero chance ....this is a real market, not a rigged one, don't you guys get it? ....has Bernanke been able to reflate the mortgages and MBS's on his own balance sheet?

LowProfile's picture

In all seriousness, it appears we are probing the limits of the Fed to prop this turd up.

Could get a selloff to the 1100 area before all the margin calls are finally met.  Then it's back to the printing presses.

Zero Govt's picture

i'm serious in that nobody has answered the question how does anyone believe the Fed or PPT drives up the very large Indexes if the Fed can't even prop up the MBS's on its own balance sheet? ...this myth only occurs while Indexes are going up. When they fall we then swap to another myth, that the Big Banks are shorting! The shadow pools and advance order computers are certainly manipulation and dirty dealing but driving up Indexes takes way too much money to do IMO ...wait for this drop to accelerate as i think it will and see what happens to this Fed/PPT myth 

EscapeKey's picture

The Fed acknowledge manipulating the bond market, every CB around the world is manipulating their currencies, and you think it's a stretch to believe they manipulate equities as well?

I don't think they're always the culprit, but they don't need to be. Once HFT routines have been trained to "spot" the buy-at-330 pattern, armed with cheap money PROVIDED BY THE FED, they will start bidding up the market again, and again, and again.

But if the monetary policy actually resembled anything sane, they wouldn't have access to money this cheap, and the HFT boxes couldn't act as a proxy PPT.

As for the MBS'es, we still see widespread bankruptcies. Who exactly do you expect to eat the losses, but for the owners of the MBS'es?

whatsinaname's picture

could be because nobody wants to be in tokyo and trade ?

duo's picture

6.4 earthquake at the base of mt Fuji.

camaro68ss's picture

volcano eruption???? that would suck

jmc8888's picture

I think I read somewhere that millions of people live near it, and that they projected if it ever erupted like it did in the past, it would literally kill millions (without proper warning ofc).

If that earthquake is sign of something to come (and I remember reading here that about 30 days after a similar incident, Mt. Fuji erupted)...Not good. 

EscapeKey's picture

Zero, huh?

Currently @ -136.

Spalding_Smailes's picture

A business like CAT will get more orders with the impact of this crisis on Kamatsu.

The USA and Germany have most of the high end manufacturing plants other than Japan.

 

 

HedgeFundLIVE's picture


A few things every investor about Japan should know http://bit.ly/dOWfho

HedgeFundLIVE's picture

A few things every investor should know about Japan http://bit.ly/dOWfho

Sean7k's picture

Seems like a reasonable action to allow the markets to settle and absorb the incoming information.

strenue's picture

'Seems like a reasonable action to allow the markets to settle and absorb the incoming radiation.'

There, I fixed it.

asdasmos's picture

If Faber is right, that uncertainty could go on for even a couple of months, I wonder how long it might actually close for.....

Cognitive Dissonance's picture

And you know how much "markets" (meaning HFT algos at this point) hate uncertainty....right?

ml8ml8's picture

So Japan is Egypt?

Zero Govt's picture

and Europes indexes not just Japans

glenlloyd's picture

is your avatar a rotor from a wankel?

NotApplicable's picture

More like lop off your wanker.

CAUSE_EFFECT's picture

O/T:  Radition network site for US 404, yet Japan is still up. Anyone else find this as well? Curious!

Johnny Lawrence's picture

This just in from UBS Retail Research:

Overall, based on our current understanding of the situation in Japan,
we are inclined to stay the course regarding our recommended
tactical asset allocation positioning. We continue to recommend an
overweight position on global equities vs. bonds but stress the virtues
of purchasing downside protection at a currently still reasonable price.
While the VIX volatility index - a rough measure of the price of
downside protection - has picked up somewhat in recent days, it
still remains significantly below levels that would make downside
protection appear expensive.

We believe that valuations and the cyclical picture remain reasonably
supportive of equities for the time being, absent emergences of further
tail risks. We also believe that the fact that pressures in the oil
market appear to be receding somewhat is a positive sign. For the
S&P 500, we maintain our 12-month price target at 1350.

idea_hamster's picture

Translation from "Swiss German" to "Honesty":

"Remain in your seats here in the theatre. That smoky smell means nothing. Oh, and we're going to be outside if anyone has questions."

Johnny Lawrence's picture

It's a disgusting industry, my friend.

traderjoe's picture

Yes. Here's the thing that I think <might> happen, but isn't being discussed directly. We all know Japan has a borrowing/debt and demographics problem. I think this might be the trigger for a Japan bond default. Not right away, but over the course of the next few years. Revenues will be down. Costs will be up. Economic activity will be on hold for weeks, months, etc. This is the tipping point for them not being able to make their bond re-payments. 

aerojet's picture

If the Japs are smart they will use this crisis to clean up their 20+ year old banking mess.

equity_momo's picture

Heres an idea for downside protection : sell some of what you have.     Vix Schmix.

UninterestedObserver's picture

First Egypt closed and now  the Nikkei - have to be a fool to have money in stocks

AN0NYM0US's picture

Rosie said something to that effect @666

william the bastard's picture

The subject of the prior post having sex with the poster's relations is your comeback to every comment you can't understand.

Robot Traders Mom's picture

Rosie was naive to think that the gov't wouldn't step in with $trillions to give to the primary dealers to synthetically prop the equity markets up...But obviously you saw that one coming.

baby_BLYTHE's picture
July 28, 2010

Economist David Rosenberg and investor Marc Faber have wagered a bottle of scotch whiskey on whether U.S. 10-year Treasury yields can go lower than 2 percent:

Faber won that bet.

http://www.businessinsider.com/marc-faber-and-david-rosenberg-bet-a-bott...

 

geminiRX's picture

Better to own a piece of a profitable company than FRN's or government debt. This is Martin Armstrongs thesis

traderjoe's picture

Why are those the only choices? I think partial ownership in a company that is dedicated to enriching its executives, doctoring numbers through non-GAAP earnings, and then offshoring employment doesn't really suit my desires...

johnQpublic's picture

how will anyone BTFD?

kensdad's picture

And the Japanese wouldn't sell U.S. stocks or bonds to raise margin cash, right?

 

Buy the dip!  I'm sure that nothing bad will happen ;-)

EscapeKey's picture

Geithner stated more or less exactly that (Japan do not need to sell treasuries) earlier today. I'm not fucking kidding.

As CD says, it's not a market, it's a crime scene.

Cognitive Dissonance's picture

So that is what just tanked this little attempt at BTFD?

I see said the blind man.

TheGoodDoctor's picture

Would this not indicate that meltdown is imminent?

Commander Cody's picture

It has already occurred in Units 1-3.  Also, all four spent fuel pools are either lost or about to be.

No more aerial photos allowed.  Why?  Most likely, the containment of Unit 2 has followed its neighbors and has also blown sky high.  If there had been a fire in the Unit 4 spent fuel pool, then its reactor building would probably also show the result.

All four units are in dire straits, the reactors and the spent fuel pools.  The explosions have been attributed to hydrogen.  That is the least likely explanation since hydrogen from damaged fuel is released to the primary containment, not the reactor building surrounding it.  The explosions were of such magnitude that they were most likely caused by failed containments due to the inability to remove heat and reduce pressure.  A less likely cause of the failed containments is that the fuel melted and breeched the reactor vessels causing steam explosions in the containment that they were never designed to withstand.

The authorities are hinting at the severity of the situation.  Since only about 50-70 personnel have remained is very telling.  All non-essential personnel are gone and it is most likely that the remaining few are volunteers who are trying desparately to mitigate a very bad situation.  And, indeed, they are heroes, but their task is insurmountable.

prophet's picture

If only there was a big pool of water, or a large pile of sand, or a nice thick set of steel domes nearby.  Risk assessment is undoubtley running full throttle.