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Japanese Stocks Halted; Plunge 1500 Points To Close Down 7.3% - Biggest Drop In 26 Months
UPDATE 1: They are panicking... BOJ injected 2 trillion yen ($19.4 billion) into the financial system to stem volatility following a circuit breaker in JGB futures trading.
UPDATE 2: Nikkei 225 is now down 1500 points from its highs and down 1150 (over 7%) from yesterday's close
All the time it is just the quadrillion JPY second-largest bond market in the world that is experiencing volatility on an unprecedented scale, the BoJ and her partners in crime are more than willing to 'officially' say "please do not worry." But when the equity market - that barometer of everything good and holy about Abenomics starts to crater, you can bet the excuses will come fast and furious. Today's drop of over 1500 points (over 9%) from the earlier highs is the largest drop for the Nikkei 225 since March 2011. The Nikkei 225 just lost the all-powerful 15,000 level and is suffering another VaR shock with a 6-sigma move today. In fact given the price levels this drop is on par with the post-Lehman moves in 2008. The question now (with US equity futures also fading fast -20 points and JPY crosses getting hammered) is how will the Japanese risk appetite for peripheral European crap hold up with this crimping in their plan as Japanese bonds and stocks dump?
The Nikkei 225 is down 7% (1000 points) from its earlier highs...
High-to-low this is the biggest drop in 26 months...
Close-to-close this is the biggest drop in the Nikkei in over 26 months!!
The Final closing data is a disaster with JPY surging back to 101.50 (carry trades getting baumgartner'd everywhere), stocks down over 7%, and 10Y JGBs swinging from +11bps at the open to -6bps at the close for the second biggest range day in a decade...
Charts: Bloomberg
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I have a feeling that gold is about to explode upward. Even the biggest self denier has to say how fake all of this is and that it could unravel at a moment's notice and suck everyone down into a vortex of money loss.
You are still using too much logic, and belief in EMH. Need more Machiavelli meets Sun Tzu meets Hunt Bros meets Rothschilds. Manipulated markets still, for the moment, means who knows what the impact will be on paper gold prices. But physical? Yeah, this will continue to increase demand for the shiny stuff.
Starting to head south again. if we get a fourth wave down before the close, might be a good time for the sheeple to panic.
Got reality tearing at the fabic, going for the heart of central banking. Gonna pop a Bernanke out of this bubble.
just like a sashimi knife cut thru the sushi....
14541 MEDIC!!!!!!!!!!!@!#@%^q!!!!!!!!!!!
Hory Shit! Nikkei sucky sucky. Centrar Bankings cwash of paper burr shit!
Does shinzo abe have a plunge protection team???
14496
Fell 1143 points! After a $20 billion injection! Hopefully Abe and the dumbass running the Jap central bank commit harakiri tonight.
Bernanke is up right now in a cold sweat. Probably snorting oxy and cocaine to get up for today's plunge protection money printing orgy!
Bullish for S&P, liquidity will flow like water. Didn't Bernanke testify once that if US markets plunged he could easily bring in the Fed to buy S&P futures? I thought I heard that back in crisis times in 2008.
The future market is so small, a billonaire could manipulate it all by himself.
Sooooo japan china war soon?
What's China's market doing? Bet they are wishing all the worst to the Japs after their big Yen devaluation!
Bet it finishes up.
Nope. Closed at the low, over 1500 points below the day's high!
NKM13 closes at 14665 (almost 666)
Who would have thought long Nikkei/short JPY was a crowded trade? This is yet another indication of the total lack of liquidity in every market everywhere. Stops are a fool's game and a predator's lunch. There's going to be more gaps in the markets than in the Nixon tapes.
Lost in shades of January 1989 is the tumble in the Aussie. China PMI can't be commodity nation positive. Aussie runing neck and neck with the Loonie.
What's that guy's name who has been short AUD since 104? Biscuits and gravy for him tonight!
+1000
Its official! Japan is fucked.
It was offical 20 years ago, dude.
I remember when I was young and on a trip to OZ and New Zealand, the Japs were everywhere spending money like crazy. The Airports in OZ and New Zealand had special shops where Japanese was spoken and only the most expensive goods were stocked. My girlfriend and I sat in Auckland airport watching the Japs flooding into these high end airport shopping venues. Coming out loaded with duty free. We were just poor American and Ozzy white trash compared to those high flying Japanese.
Same in London, Japanese were everywhere. Now when I travel, I rarely see Japanese. Very rarely. The wealth has dried up, now they are all about just getting buy at home, the heady days of high end travel for them are over!
All they seem to care about is creating young, robotic sex dolls. If they could nail that, I think they'd be happy despite the poverty.
GIFS!!!
Now it's Chinese everywhere....
the Circle of Rife
Man, we are all fucked. Just imagine to yourself for a minute what it will be like when the fake US stock indexes blow out to the down side! HALT TRADING! That won't help, it will drop like a stone when the money printing game finally comes to a forced close. How long from now I can't predict, but it is not that far out.
Seems like the Nikkei futures are halted right now down 1000 points.....USD/JPY crashing
Well, at least the bond yields are plunging.
good news is that the DOW futures are only down 118
edit down 131
edit down 161
So are big bank execs getting late night calls and early summons a la "Margin Call" tonight? Nah....
Great movie!
A shadow of things to come when the FED stops it's QE program.
Percentage loss must be pretty high if it lost that many points! What, over 6-7%??? Too friggen tired to look, need to hit the bed.
If London burns in the next few months, expect some real market drops in the UK, their money printing is out of control and housing prices are fake and the whole nation is now a fake economy. This could be the summer of riots. Sweden already, London soon, dropping markets and war on Syria. We have lots to look forward to!
The whole world economy is fake.
Lootie be right.
It will be fun watching them all being forced to cover their USD/YEN long postions.
Time to sell more paper gold and silver, of course!
Abefucknix?
This kind of stuff is music to my ears.
I thought I just read in the US financial media that Japan's new economic approach was a miracle! Fuck all a miracle!!
Come on Bernanke and Abe! Time for negative interest rates! The stock market must go up no matter what!
VIX may have a small bump come NY open
$20 billion single day injection.
WARNING: Do not try this at home. These central bankers are highly skilled trained professionals.
Enema(tic)
Little help here...I can't remember if Bernanke said "we have extensive policy tools" or "we are extensive policy tools".
Fire $3B. Small explosion
Sir, The planet has grown by 15%
Fire three $20B!
Ok launch 3 20B sir. 3 larger Explosions..
The planet has grown by 50% sir.
What do we have over $20B?
> $20 billion single day injection.
it is ON.
COUNTDOWN TO THUNDERDOME!!!!!
*DONG* *DONG* *DONG* BRING OUT YOUR DEAD!!! *DONG* *DONG* *DONG*
If the lever is unleashed from the VIX tmrw...this gets interesting. If the market rallies back to the green from this, US session could get bubbly.
Hard to get green with NK locked limit down.
NQ down 26 ES down 16
Well isn't that what they were trying to do. They are banksters. That's what banksters do.
While the Chicoms are laughing their asses off...
http://english.kyodonews.jp/news/2013/05/226343.html
3 Chinese vessels sail into Japanese waters near Senkakus
NAHA, Japan, May 23, Kyodo
Three Chinese maritime surveillance vessels entered Japanese territorial waters on Thursday near the Senkaku Islands, a Japanese-controlled islet group claimed by China, the Japan Coast Guard said.
The coast guard said it was warning the vessels to leave the area but there has been no response.
It ain't over till we say it's over, was it over when the Germans bombed Pearl Harbor?
No but it was over when we nuked their schnitzel, twice.
It ain't over till it's over. But if time is up - time is up.
omg!!!! everybody buy the dollar! it will be the last one to go down with the ship! you'll be able to live 5 minutes more before you are sucked down into the abyss!
buy as much gold and silver as you can now! this is the end game! we are at the stage of the game where the dollar strengthens as the last resort fiat before the final collapse of the entire system and war, gog and magog.
This brings back fond memories of 2011, oh the chaos...
NK off limit dn at 14775
Can you say Margin Call? The massive margin calls to everyone holding JGB exposure this morning are going to destabilise all other asset classes as liquidation to fund the calls rolls through the system.
Japan [RED]
Europe [RED]
America .... (Sure, futures are down, but I've seen the dump-and-pump before.) Dare I wish for... RED?
I'm looking for a swfit move to 96 in USD/Yen as the carry trade starts to break.
Movie showing what the Japanese traders are feeling right now:
http://www.youtube.com/watch?v=EjBt5XpEezk
Learn a new acronym: STFR (Sell the Frivolous Rally).
I wonder how Yencross is doing.
Could someone explain to me why carry trades are getting baumgartner'd (I'm assuming dropped). Still struggling to get the interplay between Japanese bonds, stocks, currency and the carry trades. Much appreciated!!
I think Nikkie crashing means transfer of money from stocks to safe haven bonds sending Yen higher when carry traders hoping for Yen devalue and easy arbitrage gain. So Yen up means carry traders smashed. One has to wonder if this was set alight intentionally because of the carry trade all too obvious.. Its like the gold squeeze of a month or so back.. I don't know, the crazy just got crazier, great to watch though yeah
Because hedge funds borrow cheaply in yen and then use that money to buy other assets in a higher yielding currencies or markets, for example the US. Often with leverage. So if Japanese interest rates start to spike it can quickly become problematic. When the flows reverse we have seen spectacular blow ups in the past. Also we have seen a massive move up in the the USD/Yen from around 78 to 103, so there is a lot of people betting one way there. The two factors combined could cause a very big move in the opposite direction.
Well, Tyler's can be counted on: http://www.zerohedge.com/contributed/2013-01-12/japanese-yen-trade-expor...
See also the comment-section (and do a search across ZH). There are a few articles regarding that topic.
They are destroying the currency. It's one thing to borrow free money and invest it elsewhere throughout the world. It's quite another when they are destroying the currency and the yen/USD moves from 80 to 103. Now with this move they have put themselves in a position where the best trade is the Kyle Bass trade. The hot money will probably jump on it. They have fucked themselves with their latest monetary policy action and pulled the day of wreckoning forward.
and I turn on CNBC and they are congratulating Japan for it.
Amazing.
I saw that, they were also talking about how great our economy is doing. The propaganda is sickening.
Oops that should read USD/Yen to 103.
Time for Mr Bernanke to join Kuroda-san on an 'Expectations Management' seminar....
http://nipponmarketblog.wordpress.com/
But of course, to put it all into perspective, Nikkei hasn't even hit the low for the month yet...
exactly as it is up what? 75% over the last couple of months?
all as centrally planned and implemented
Must be some fuckin AWESOME weather over there to blame this on.
Abenonikk
ha ha ha. fuck u japan and anyone stupid enough to invest in this equity market.
just when u think u r getting rich, u lose it in the blink of an eye.
curious if we will get a massive sell off in the u.s today?
should be interesting day to say the least
Ive only been here for a short while but i think my rants are starting to set in around the homestead. Woke up and told the olde lady that the nikkei was down 1500 points overnight. She replied "So thats Bullish, Right?" Talk about stunned silence...she then went on to ask what we should do with some spare cash, before i could answer she said "i guess we should buy a little gold." It was the best non sex having morning ever.
Nothing to see here move along, move along. Everything normal.
The Nikkei 225 is down 7% (1000 points) from its earlier highs... but earlier in the same post said 1500 from highs? which is it?
First one and then the other. 1250 (actually) from the open, 1450 (actually) from the intraday high.
EPIC meets FAIL
Silver For The People
another evidence in failure of central banking ...