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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 | 3595374 Neethgie
Neethgie's picture

Nikkei two two dive

Fri, 05/24/2013 - 08:59 | 3595489 AlaricBalth
AlaricBalth's picture

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

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 | 3595518 Disenchanted
Fri, 05/24/2013 - 09:27 | 3595583 Spirit Of Truth
Spirit Of Truth's picture

Puetz eclipse crash window in effect around a lunar eclipse hours away:


"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 | 3595823 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 | 3595377 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 | 3596116 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 | 3595378 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 | 3595390 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 | 3595433 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 | 3595834 ebworthen
ebworthen's picture

"The Story of O"

Fri, 05/24/2013 - 08:27 | 3595379 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 | 3595381 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 | 3595388 ekm
ekm's picture

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



Fri, 05/24/2013 - 08:32 | 3595395 Bearwagon
Bearwagon's picture

Climb aboard. :)

Fri, 05/24/2013 - 08:38 | 3595417 BeepBeepImAJeep
BeepBeepImAJeep's picture

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

Fri, 05/24/2013 - 08:31 | 3595393 new game
new game's picture

have you got your ribbon proudly displayed on your car?

Fri, 05/24/2013 - 08:33 | 3595396 ekm
ekm's picture


Japan was running out of energy.

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

Fri, 05/24/2013 - 08:36 | 3595412 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 | 3595414 fonzannoon
fonzannoon's picture

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


Fri, 05/24/2013 - 08:40 | 3595426 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 | 3595437 new game
new game's picture

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

Fri, 05/24/2013 - 08:45 | 3595446 ekm
ekm's picture

cheap camrys, very cheap

cheap sonys and toshibas

Fri, 05/24/2013 - 08:50 | 3595463 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 | 3595708 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 | 3595451 GMadScientist
GMadScientist's picture

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

Fri, 05/24/2013 - 08:49 | 3595462 ekm
ekm's picture

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

Not sure

Fri, 05/24/2013 - 10:33 | 3595798 GMadScientist
GMadScientist's picture

The Bernank is sure.

Fri, 05/24/2013 - 08:42 | 3595438 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 | 3595466 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 | 3595514 fonzannoon
fonzannoon's picture

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

Fri, 05/24/2013 - 09:09 | 3595519 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 | 3595531 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 | 3595534 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 | 3595552 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 | 3595557 ekm
ekm's picture

At your own's your money

This thing is day to day.....

Fri, 05/24/2013 - 09:29 | 3595592 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 | 3595601 ekm
ekm's picture


it's day' to day

Fri, 05/24/2013 - 09:38 | 3595621 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 | 3595639 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 | 3595644 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 | 3595881 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 | 3595547 DeadFred
DeadFred's picture

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

Fri, 05/24/2013 - 09:22 | 3595567 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 | 3595596 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.




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 | 3595849 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 | 3595716 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 | 3595932 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 | 3595474 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 | 3595442 new game
new game's picture

that is with some military consideration...

Fri, 05/24/2013 - 08:29 | 3595384 mdtrader
mdtrader's picture

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

Fri, 05/24/2013 - 08:49 | 3595457 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 | 3595385 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 | 3595402 GMadScientist
GMadScientist's picture

Rook out beroowwwww!

Fri, 05/24/2013 - 08:34 | 3595403 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 | 3595406 timbo_em
timbo_em's picture

Hold my bag please!

Fri, 05/24/2013 - 08:36 | 3595409 css1971
css1971's picture


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 | 3595413 the not so migh...
the not so mighty maximiza's picture

no fucki only sucki

Fri, 05/24/2013 - 08:38 | 3595418 fonzannoon
fonzannoon's picture

The markets may drop.

Stay tuned!

Fri, 05/24/2013 - 08:38 | 3595419 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 | 3595422 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 | 3595577 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 | 3595423 All_Is_Well
All_Is_Well's picture

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

Fri, 05/24/2013 - 08:39 | 3595424 EmileLargo
EmileLargo's picture

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

Fri, 05/24/2013 - 11:39 | 3596016 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 | 3595431 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 | 3595434 CreditcalMass
CreditcalMass's picture


Fri, 05/24/2013 - 08:41 | 3595436 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....

Fri, 05/24/2013 - 08:42 | 3595439 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 | 3595447 exartizo
exartizo's picture

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

Fri, 05/24/2013 - 08:50 | 3595464 Bearwagon
Bearwagon's picture

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

Fri, 05/24/2013 - 08:56 | 3595470 exartizo
exartizo's picture

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

Fri, 05/24/2013 - 08:45 | 3595448 razorthin
razorthin's picture

Crash and burn fukkers.  US needs some of dat.

Fri, 05/24/2013 - 08:48 | 3595452 Chappy
Chappy's picture

Did anyone on here short this yesterday? 

Fri, 05/24/2013 - 10:09 | 3595712 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 | 3595455 css1971
css1971's picture

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

Fri, 05/24/2013 - 08:51 | 3595460 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 | 3595472 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 | 3595515 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 | 3595562 Smuckers
Smuckers's picture

Long live Nikki Tyler!


Fri, 05/24/2013 - 09:48 | 3595653 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 | 3595672 rubearish10
rubearish10's picture

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

Fri, 05/24/2013 - 10:18 | 3595738 buzzsaw99
buzzsaw99's picture

bad sushi

Fri, 05/24/2013 - 11:10 | 3595918 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 | 3595966 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 | 3596020 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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