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Nikkei Futures Resume Plunge

Tyler Durden's picture





 

Japanese stocks had another violent night with record trading volumes on the TOPIX. The early 'buy the dip mentality' rapidly escalated into sell-Mortimer-sell as the Nikkei 225 dropped another 1000 points after the lunch break. A late day recovery managed to close the index just in the green and all could relax that the world was once again a better place thanks to Abenomics. However, since Japan closed, Nikkei futures have been sold aggressively now testing back down towards overnight lows.

The overnight destruction was save by a late-day recovery just into the green - but things are escalatung rapidly once again...

 

Last night's drop occurred on record trading volume on the TOPIX...

 

Charts: Bloomberg and @InsideGame

 


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Fri, 05/24/2013 - 08:26 | Link to Comment Neethgie
Neethgie's picture

Nikkei two two dive

Fri, 05/24/2013 - 08:59 | Link to Comment AlaricBalth
AlaricBalth's picture

"Don't worry about a thing,
'Cause every little thing gonna be all right."

http://www.youtube.com/watch?v=mACqcZZwG0k

A short Bob Marley tune to kick off the day here in the US. 

All the best to my fellow ZH'ers!

Fri, 05/24/2013 - 09:06 | Link to Comment Disenchanted
Fri, 05/24/2013 - 09:27 | Link to Comment Spirit Of Truth
Spirit Of Truth's picture

Puetz eclipse crash window in effect around a lunar eclipse hours away: http://thespiritoftruth.blogspot.com/2013/05/puetz-eclipse-crash-window-...

 

"Puetz attempted to discover if eclipses and market crashes were somehow connected. Without discussing our own opinion on the potential connection between astronomical configurations and market timing, let's simply relate to you the basic findings discussed by Puetz. He emphasized that he is not contending that full moons close to solar eclipses cause market crashes. But he does conclude that a full moon in general and a lunar (eclipse) full moon close to solar eclipses, in particular, seem to be the triggering device that allows for the rapid transformation of investor psychology from manic greed to paranoia. He asks what the odds are that eight of the greatest market crashes in history would accidentally fall within a time period of six days before to three days after a full moon that occurred within six weeks of a solar eclipse? His answer is that for all eight crashes to accidentally fall within the required intervals would be .23 raised to the eighth power less than one chance in 127,000."

". . .Puetz) used eight previous crashes in various markets from the Holland Tulip Mania in 1637 through the Tokyo crash in 1990. He noted that market crashes tend to be lumped near the full moons that are also lunar eclipses. In fact, he states, the greatest number of crashes start after the first full moon after a solar eclipse when that full moon is also a lunar eclipse . . Once the panic starts, Puetz notes, it generally lasts from two to four weeks. The tendency has been for the markets to peak a few days ahead of the full moon, move flat to slightly lower --waiting for the full moon to pass. Then on the day of the full moon or slightly after, the brunt of the crash hits the marketplace."

Fri, 05/24/2013 - 10:40 | Link to Comment Manthong
Manthong's picture

It’s just a good thing that we are not doing anything as foolish as Japan is doing.

Fri, 05/24/2013 - 08:27 | Link to Comment ebworthen
ebworthen's picture

Get me off this ship!  I don't care how you do it!  Just get me off!

Fri, 05/24/2013 - 12:16 | Link to Comment americanspirit
americanspirit's picture

We have this little device for those who wish to disembark - it's called the plank. Step right this way.

Fri, 05/24/2013 - 08:27 | Link to Comment jubber
jubber's picture

...and the DAX  and DOW miracuously jump 50 points in the last half hour, surely the US is not going to open positive???

Fri, 05/24/2013 - 08:30 | Link to Comment fonzannoon
fonzannoon's picture

You don't need POMO anymore. Bernak won. The POMO was never meant to levitate the markets. It was meant to train you to BTFD. Now he has done his great work and it is up to us monkeys to continue to BTFD when he leaves us....and BTFD we will.

Fri, 05/24/2013 - 08:40 | Link to Comment philosophers bone
philosophers bone's picture

He also did the old trick of putting in the tip until we not only got used to it, we actually liked it and now are just flat out begging to be fucked.

Fri, 05/24/2013 - 10:43 | Link to Comment ebworthen
ebworthen's picture

"The Story of O"

Fri, 05/24/2013 - 08:27 | Link to Comment ekm
ekm's picture

Navy Seals from the New York Fed plunge protection team are on the way for help

Fri, 05/24/2013 - 08:29 | Link to Comment fonzannoon
fonzannoon's picture

don't look now ekm but you are sounding like the rest of us. Give it a few more days and you may be outright bullish. It's impossible to stop ekm. don't fight it.

Fri, 05/24/2013 - 08:30 | Link to Comment ekm
ekm's picture

Not at all. I'm actually hyper ultra bearish.

 

 

Fri, 05/24/2013 - 08:32 | Link to Comment Bearwagon
Bearwagon's picture

Climb aboard. :)

Fri, 05/24/2013 - 08:38 | Link to Comment BeepBeepImAJeep
BeepBeepImAJeep's picture

A bearwagon? No no no, "fool me once" and all that.

Fri, 05/24/2013 - 08:31 | Link to Comment new game
new game's picture

have you got your ribbon proudly displayed on your car?

Fri, 05/24/2013 - 08:33 | Link to Comment ekm
ekm's picture

http://business.financialpost.com/2013/05/17/u-s-approves-second-terminal-to-export-natural-gas/?__lsa=a241-39d6

 

Japan was running out of energy.

Obama was forced to allow LNG exports to...Japan.

Fri, 05/24/2013 - 08:36 | Link to Comment new game
new game's picture

truth is he got that call from tillis or whomever-geter fucking done.

can you think of a larger industry - 88 million bbls/day...

all power flows from the oil masters...

Fri, 05/24/2013 - 08:37 | Link to Comment fonzannoon
fonzannoon's picture

So Obama is giving Japan LNG in return for worthless Yen?

 

Fri, 05/24/2013 - 08:40 | Link to Comment ekm
ekm's picture

Japan is a US Military Protectorat. They do whatever US says, right accross from china.

 

US has to pay for that. Japan is extracting rent from US in exchange for being a puppet.

There is nothing new under the sun

 

Those yens will buy inflated japanese goods in USA

Fri, 05/24/2013 - 08:41 | Link to Comment new game
new game's picture

well the yen isn't worthless yet.  could get camrys instead...

Fri, 05/24/2013 - 08:45 | Link to Comment ekm
ekm's picture

cheap camrys, very cheap

cheap sonys and toshibas

Fri, 05/24/2013 - 08:50 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I was just considering buying a Suzuki TU250 for the commute.  Cheapest new bike on the market!

Fri, 05/24/2013 - 10:08 | Link to Comment BigInJapan
BigInJapan's picture

Honda Super Cub - the world's most successful motor vehicle at over 50 million units, not including some 10 million Chinese Lifan copies.

Fri, 05/24/2013 - 08:47 | Link to Comment GMadScientist
GMadScientist's picture

Those Yens will buy inflated American stocks, bank on it.

Fri, 05/24/2013 - 08:49 | Link to Comment ekm
ekm's picture

For that they have to buy dollars first, hence strong dollar

Not sure

Fri, 05/24/2013 - 10:33 | Link to Comment GMadScientist
GMadScientist's picture

The Bernank is sure.

Fri, 05/24/2013 - 08:42 | Link to Comment ekm
ekm's picture

I figured this out 6 days ago.

Japan prints yen and buys energy from USA

Yens go back to buy toyotas and sonys

 

Perfect deal for an energy starved island.

Fri, 05/24/2013 - 08:52 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

+10.  It's that simple, isn't?  Just an embezzlement on the taxpayer's dime.

Fri, 05/24/2013 - 09:05 | Link to Comment fonzannoon
fonzannoon's picture

so where in this plan is a collapse factored in? It almost sounds bullish.

Fri, 05/24/2013 - 09:09 | Link to Comment ekm
ekm's picture

Japanese could have accepted to cause and be blamed for the financial collapse that is badly needed.

 

IT'S ALL ABOUT THE BLAME. There must be a deal with Japan to keep the yen withing certain range, not to cheap, not too strong.

It makes Japan even more dependent on USA

Fri, 05/24/2013 - 09:10 | Link to Comment fonzannoon
fonzannoon's picture

Maybe. So far Gmadscientist is right. It's U.S stocks that are the beneficiary. I am starting to wonder if people on here may be greatly disappointed if Japan does go tits up and the dow goes to 20k in response.

Fri, 05/24/2013 - 09:12 | Link to Comment ekm
ekm's picture

That would mean that japanese banks buying those stock would be the final sucker.

At 15k dow is fully owned by primary dealers + Fed

Any point above that is irrelevant.

Fri, 05/24/2013 - 09:17 | Link to Comment fonzannoon
fonzannoon's picture

Really? If I buy the irrelevant dow today and cash out at 25k that was not relevant?

I completely agree that there will be a table full of suckers when this is all over. Probably a country full. But after it's been all said and done the last two days the JGB yields are still below 1% and their stock market is still up 75% for the last year,

Until their 10yr hit's 1.50 and everything they do makes it worse it still seems like it's same as it ever was.

Fri, 05/24/2013 - 09:19 | Link to Comment ekm
ekm's picture

At your own risk...it's your money

This thing is day to day.....

Fri, 05/24/2013 - 09:29 | Link to Comment fonzannoon
fonzannoon's picture

You must be advocating all cash. Because In your scenario banks and money markets are done.

Fri, 05/24/2013 - 09:31 | Link to Comment ekm
ekm's picture

ABSOLUTELY

it's day' to day

Fri, 05/24/2013 - 09:38 | Link to Comment fonzannoon
fonzannoon's picture

That is where you lose me. As you said, you lived this. This ends in massive inflation. Why cash?

 

Fri, 05/24/2013 - 09:43 | Link to Comment ekm
ekm's picture

No, massive deflation, money destruction.

Hence, CASH AT HAND will preserve the value.

Cash in a bank as electrons, is screwed.

Fri, 05/24/2013 - 09:45 | Link to Comment fonzannoon
fonzannoon's picture

That massive deflation leads directly to currency collapse which leads to massive inflation. You know the rulebook. You know where it ends. It has never ended in deflation.

Fri, 05/24/2013 - 11:00 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I'm lost where people get deflation out of money printing madness and resulting currency collapse.

A hyperinflationary depression? Yes, that I understand.

Fri, 05/24/2013 - 09:16 | Link to Comment DeadFred
DeadFred's picture

O must be pissed. He wanted it to be the fault of the repubs.

Fri, 05/24/2013 - 09:22 | Link to Comment tip e. canoe
tip e. canoe's picture

interesting as usual ekm.   this would play right into the soft spot of the Japanese culture going way back.   would also explain the rise of Nippon nationalism and the reflaring of the spats with China (intermural) and Korea (innermural).

what boggles me mind is how such an immature culture like the US got such an old culture like Japan to continue to play the bitch over and over again.    the sadomasochism on such a grand scale as that of an entire society usually takes at least a few hundred years to master the particular psychological submission techniques required.

guess those atomic bombs had more of a profound effect than most are willing to imagine.

 

Fri, 05/24/2013 - 09:30 | Link to Comment ekm
ekm's picture

Energy, it's all and always about the energy.

The island needs energy, otherwise they'll be a 3rd world country.

On the other hand, USA needs bases there.

 

THERE IS NOTHING NEW UNDER THE SUN.

 

People say: Follow the Money

The best way to put is is: Follow the energy, and finance because quite easier to understand.

Fri, 05/24/2013 - 11:19 | Link to Comment tip e. canoe
tip e. canoe's picture

betya you're a helluva Risk player, mate.    no doubt that islands make an easy mark and excellent placement for naval bases.   that's how the Brits did it : stifle the resources, capture the good seaports and it's like licking butter off your hands (or shall we say opium?).

what gets me is that the Japanese have known this for centuries.   yet still, they got themselves addicted to a form of energy like no other nation (and thus easy pickins) 1-2 generations after being pummelled by the destructive power of that same form of energy.    even if one disagrees with the draconian drug laws that exist in China, one can understand the reason for them once relatively recent history is recognized.    yet, Japan got hooked on nuke after getting dosed by it.

agreed, money is a vehicle of energy.   so is power.    so are memes.   so is culture.   so is myth.   so is the Sun.   and the one observation that we have discovered about energy that seems quite certain to me is that it exists in polarities.    mix all those conduits into a stew, and where does that path lead us?

Fri, 05/24/2013 - 10:13 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

I promised myself a week off, but it's been rather eventful, so a quick fly-by. To answer your question:

"But you have there the myth of the essential white America. All the other stuff, the love, the democracy, the floundering into lust, is a sort of by-play. The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted." DH Lawrence. Translated: because the Japanese respect the fact they got nuked and don't doubt the same Will still exists in DC.

Moreover, the enemy now possesses a new and terrible weapon with the power to destroy many innocent lives and do incalculable damage. Should we continue to fight, not only would it result in an ultimate collapse and obliteration of the Japanese nation, but also it would lead to the total extinction of human civilization. Such being the case, how are We to save the millions of Our subjects, or to atone Ourselves before the hallowed spirits of Our Imperial Ancestors? This is the reason why We have ordered the acceptance of the provisions of the Joint Declaration of the Powers. CF Kokutai

 

Another data point no-one is seemingly making: after the 97' crash, both S. Korea (less important, but see Corporate strategy & their own racism - there's a reason they're good at Star Craft) and China both vowed never to be subject to the same treatment by the IMF / USA again. I presume the US knows this, and thus Japan is the crux. You'll also note last night Draghi went with: "Europe needs a more European UK as much as the UK needs a more British Europe... With such deep interconnections, the UK and the euro area share a common interest: the stability in the functioning of our economic system and particularly our financial markets... This process ultimately entails some transfer of national sovereignty in the areas of budget and structural policies". As I said, Bilderberg will probably be cementing the details, if they've not already been finalized.

 

p.s. Here's a fun one: If a multiverse exists (visa vie Actual / Virtual, possibility / probability from a concrete present > possible worlds that then become concrete), but every QM change made makes a more inchoate Universe, should one keep trying? Answer: Of course you should, the other options are a lot worse (stagnant Japan is our crux here, the setting sets the tone). Off to watch the triple conjunction, stay safe.

Fri, 05/24/2013 - 11:16 | Link to Comment tip e. canoe
tip e. canoe's picture

thanks for the pistil-tickling flyby some sweet neuron-pollen you've dropped this time.   so Japan plays the role of the Martyr of Asia as it lives out the lesson the rest of us can learn from?   well, that's very admirable of them, but at this point in the story, if i was playing Abenomics, i'd say fuck that shit and spend all that funny money on building solar panels for domestic use and growing lemonbalm & mushrooms on natural farms just to survive the next 2 generations and let the rest of the world figure that shit out themselves.   if there's anything that they still need to outbetter America on, it's the "fuck you" attitude. 

p.s.   but of course, especially when that QM comes from the proper source, yes?    off to plant some seeds, you too.

p.p.s.  see you at your comeback...whenever that is...

Fri, 05/24/2013 - 08:56 | Link to Comment new game
new game's picture

now to get the shit being burned off 24/7 in ND. fly over and it looks like a million candle birthday party.

son works out there and it is indeed crazy town usa...

Fri, 05/24/2013 - 08:43 | Link to Comment new game
new game's picture

that is with some military consideration...

Fri, 05/24/2013 - 08:29 | Link to Comment mdtrader
mdtrader's picture

Surely only a matter of time before the carry trade and USD/Yen implodes.

Fri, 05/24/2013 - 08:49 | Link to Comment chindit13
chindit13's picture

I understand where you're coming from, but I might want to hold tight this time, even add to the position if the yen rallies.  At the end of the day Abe has admitted that Japan is stuck, and must either let the yen go or the JGB market go.  For years they pretended otherwise, but when it looked as if they would lose Sharp, Toshiba, Casio, maybe Sony and a few other firms, they had no choice but to do something dramatic. They have chosen, so far, to destroy the yen. I suspect they will keep at that for a while, which means STFR (sell the effing rally).  We'll see.

Fri, 05/24/2013 - 08:29 | Link to Comment new game
new game's picture

ppteam; calling the great shalom, time to buy bunga bunga style!

hey, you and abe can swap all those nifty bonds and create moar as collateral will be unlimited...

Fri, 05/24/2013 - 08:34 | Link to Comment GMadScientist
GMadScientist's picture

Rook out beroowwwww!

Fri, 05/24/2013 - 08:34 | Link to Comment 101 years and c...
101 years and counting's picture

but...but....they're printing money.  how can stocks possibly drop???

Fri, 05/24/2013 - 08:34 | Link to Comment timbo_em
timbo_em's picture

Hold my bag please!

Fri, 05/24/2013 - 08:36 | Link to Comment css1971
css1971's picture

Nnnoooooooooooooooooooooooooooooooooooooooooooooooooo!

Say it ain't so!

 

Meh. Come on the ramp was totally insane in the first place. There are muppets out there in the MSM congratulating each other on how foresightful they were to get in at the start of the pyramid.

Fri, 05/24/2013 - 08:37 | Link to Comment the not so migh...
the not so mighty maximiza's picture

no fucki only sucki

Fri, 05/24/2013 - 08:38 | Link to Comment fonzannoon
fonzannoon's picture

The markets may drop.

Stay tuned!

Fri, 05/24/2013 - 08:38 | Link to Comment markettime
markettime's picture

Durable goods come in better than expected. Good news is now going to send the market down?

Fri, 05/24/2013 - 08:39 | Link to Comment Gringo Viejo
Gringo Viejo's picture

When I was a kid we'd watch this guy on the Ed Sullivan Show spin plates on sticks. He'd keep spinning more and more plates until invariably, there'd be too many for him to attend to and they'd all come crashing down and break.

The more things change, the more they remain the same.

Fri, 05/24/2013 - 09:25 | Link to Comment DeadFred
DeadFred's picture

The very image I used just two days ago when describing the coming crash. It doesn't even matter how skilled you are because the length of your arms will ultimately limit how many plates you can spin. Soon it will be time for a commercial break as they sweep up the broken china <or maybe japan>. Bad pun

Fri, 05/24/2013 - 08:39 | Link to Comment All_Is_Well
All_Is_Well's picture

All good ponzis must come to an end.....

Fri, 05/24/2013 - 08:39 | Link to Comment EmileLargo
EmileLargo's picture

"Sell Mortimer Sell". LOL!! Sounds like a quote from a Sergio Leone movie.

Fri, 05/24/2013 - 11:39 | Link to Comment WAMO556
WAMO556's picture

Actually John Landis directed the TRADING PLACES movie here that particular quote comes from.

In regards to spaghetti westerns - I am partial to ENZO BARBONI and his TRINITY series.

"You make GOOD beans!"

Fri, 05/24/2013 - 08:40 | Link to Comment css1971
css1971's picture

So what we talking here? 10 billion dollars, 1 TrrrrrIIIilllllion yen for 1000 points levitation?

 

Bargain at twice the price.

Fri, 05/24/2013 - 08:40 | Link to Comment CreditcalMass
CreditcalMass's picture

TORA TORA TORA

Fri, 05/24/2013 - 08:41 | Link to Comment NipponMarketBlog
NipponMarketBlog's picture

 

 

The authorities have unleashed a beast that they will ultimately be unable to control, and the politicians are the only ones who are almost guaranteed not to understand what they are doing.

I am betting that more than one now former Minister of Finance, as well as former BoJ chief Shirakawa, are counting themselves lucky they retired before all of this started unfolding....

 

http://nipponmarketblog.wordpress.com/2013/05/19/too-much-of-a-good-thing/

Fri, 05/24/2013 - 08:42 | Link to Comment Smuckers
Smuckers's picture

I think it's about that time now for Mr. Miyagi to pull out the wooden twirl doll....

Fri, 05/24/2013 - 08:45 | Link to Comment exartizo
exartizo's picture

it is possible that the whole ponzi goes down with Japan.

Fri, 05/24/2013 - 08:50 | Link to Comment Bearwagon
Bearwagon's picture

It is probable that the whole ponzi goes down with Japan.  FIFY

Fri, 05/24/2013 - 08:56 | Link to Comment exartizo
exartizo's picture

let's see if the U.S. jumps in with both feet. :)

Fri, 05/24/2013 - 08:45 | Link to Comment razorthin
razorthin's picture

Crash and burn fukkers.  US needs some of dat.

Fri, 05/24/2013 - 08:48 | Link to Comment Chappy
Chappy's picture

Did anyone on here short this yesterday? 

Fri, 05/24/2013 - 10:09 | Link to Comment Defiant1968
Defiant1968's picture

I did but was sweating big time when futures up 5 and Japan market up at the open

Fri, 05/24/2013 - 08:48 | Link to Comment css1971
css1971's picture

Come on Abe. Make everyone in Japan a triiiiilllllllllionnnaire! You know you wanna.

Fri, 05/24/2013 - 08:51 | Link to Comment new game
new game's picture

so are we seeing the beginning of the great deflationary super cycle that started from the great super cycle of debt that started 40 years ago?

Fri, 05/24/2013 - 08:56 | Link to Comment EmileLargo
EmileLargo's picture

I shorted the market three days ago. It goes up a little and then it comes down but the upside seems rather muted at present. Either the market goes WAY higher from here indicated by the fact that despite the Nikkei drop it didn't drop a lot OR it is downhill from here given that the rally seems to be running out of steam.

If it goes past 16,000 I'll add to my shorts.

Fri, 05/24/2013 - 09:05 | Link to Comment rubearish10
rubearish10's picture

Ummmm, strong USD, falling US rates, ummmm. Bond geeks know this already. Upside glass ceiling for stocks is really 3 feet of solid boron steel!

Fri, 05/24/2013 - 09:21 | Link to Comment Smuckers
Smuckers's picture

Long live Nikki Tyler!

 

Fri, 05/24/2013 - 09:48 | Link to Comment asscannon101
asscannon101's picture

Hmmmm. And as the situation in Japan deteriorates, the US prepares to enjoy a long holiday weekend where US markets will be closed on Monday. So everyone now gets a chance to ruminate and worry for a couple of days, deciding upon a course of action for the next market session. And if things go badly on Monday, many in the US will paralyzed, forced to simply watch, unable to reach out and grasp the 'clean' end of this turd. Could make for an interesting market on Tuesday?

Fri, 05/24/2013 - 09:56 | Link to Comment rubearish10
rubearish10's picture

All jets, helicopters and trains have already left for the Hamptons. What a sleeper!

Fri, 05/24/2013 - 10:18 | Link to Comment buzzsaw99
buzzsaw99's picture

bad sushi

Fri, 05/24/2013 - 11:10 | Link to Comment mdtrader
mdtrader's picture

Things that I think might happen if the carry breaks. USD/Yen to move lower somewhere between 500 and 1200 pips lower from 101. Gold to rally at least $100 and perhaps more as a short squeeze takes place. 

Fri, 05/24/2013 - 11:24 | Link to Comment jomama
jomama's picture

gold and silver 'down' on the news. 

but who really cares until the shitstorm finally goes up in flames? 

Fri, 05/24/2013 - 11:38 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

PM's always take the hit right before a collapse. Remember silver $8.00 troy oz in September of 08? I do :)

 

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