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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Neethgie's picture

Nikkei two two dive

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!

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."

Manthong's picture

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

ebworthen's picture

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

americanspirit's picture

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

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???

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.

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.

ekm's picture

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

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.

ekm's picture

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



BeepBeepImAJeep's picture

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

new game's picture

have you got your ribbon proudly displayed on your car?

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...

fonzannoon's picture

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


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

new game's picture

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

ekm's picture

cheap camrys, very cheap

cheap sonys and toshibas

ParkAveFlasher's picture

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

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.

GMadScientist's picture

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

ekm's picture

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

Not sure

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.

ParkAveFlasher's picture

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

fonzannoon's picture

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

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

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.

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.

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.

ekm's picture

At your own's your money

This thing is day to day.....

fonzannoon's picture

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

ekm's picture


it's day' to day

fonzannoon's picture

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


ekm's picture

No, massive deflation, money destruction.

Hence, CASH AT HAND will preserve the value.

Cash in a bank as electrons, is screwed.

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.

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.

DeadFred's picture

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

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.


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.

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?

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.

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...

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...