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Japanese Stocks Open -3%, JPY Under 101.00, JGBs -2bps

Tyler Durden's picture





 

UPDATE 1: S&P 500 futures now red (-5.5 points from open); TOPIX -3%, Japanese banks and real estate leading the slide (-16% from highs).

UPDATE 2: JPY has broken back under 101.00

It seems the sell-the-f$$king-bounce crowd are back in Japan once again. Minutes from the last BoJ meeting are providing some ammo for the fall as doubts appear among the members of the committee...

  • *ONE BOJ MEMBER: DOWNSIDE RISKS FOR PRICES ARE LARGER
  • *A FEW MEMBERS: SEEMS HARD TO REACH 2% IN LATTER HALF OF PERIOD
  • *A FEW MEMBERS:KEEP MULLING STEPS TO AVOID DECLINING LIQUIDITY

For now, JPY has strengthened notably from its gap-weaker open and is trading around unchanged from Friday's close. JGBs opened modestly stronger. But it is the equity market that is fading fast with TOPIX now down 28 points (2.5%) from Friday's close - pressuring the lows once again (and the 10% correction) as the realization that 'Abe can't have his equity euphoria and eat his low interest rate cake too' increases...

 

 

Charts: Bloomberg

 


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Sun, 05/26/2013 - 20:18 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

Tora Tora Tora!

Sun, 05/26/2013 - 21:10 | Link to Comment williambanzai7
williambanzai7's picture

No, Toner, Toner, Toner

Sun, 05/26/2013 - 21:32 | Link to Comment Whatta
Whatta's picture

[the U.S.S. Enterprise is being sucked into a black hole, seconds away from doom]
Scotty: I'm giving her all she's got, Captain!
[the bridge ceiling begins to crack as the ship's drawn closer]
James T. Kirk: All she's got isn't good enough! What else ya got?
Scotty: Um... Okay, if we eject the core and detonate, the blast could be enough to push us away! I cannae promise anything, though!
[the viewing window starts to rupture]
James T. Kirk: DO IT, DO IT, DO IT!

 

hmmmm, easily rewritten to fit our lovely financial mess?

Sun, 05/26/2013 - 23:12 | Link to Comment jonjon831983
jonjon831983's picture

"eject the core and detonate" = Fight Club take back the power and blow up all the debt to start everybody at 0?

Sun, 05/26/2013 - 23:16 | Link to Comment Spirit Of Truth
Spirit Of Truth's picture

Puetz eclipse crash window now open.  The lunar eclipse was yesterday.

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."

Sun, 05/26/2013 - 23:31 | Link to Comment knukles
knukles's picture

Update:  Some senior Japanese guy, Yazoo Idunno or whatever his name is with some powerful sounding bureaucracy in Japan supposedly with/attached to/of the government or similar function was to have said and was printed out on one of those little electronic Post-its (Well, maybe even tits as it is Mamorial Day weekend) on BBG that "they're watching everything and if anything happens then they'll respond".

Fuck me, those guys are good!

But then again, why are they watching everything if there's nothing wrong to watch?  I mean it sounds kinda Hunter S Thompsonesque, no?
"We were watching everything assuming that something was going to happen before the ether wore off and the drugs kicked in. God, I felt right at home.  Again." 

Mon, 05/27/2013 - 07:09 | Link to Comment lakecity55
lakecity55's picture

Hey, reminds me of my favorite HST quote I lifted from ZH and saved:

 

“If I'd written all the truth I knew for the past ten years, about 600 people - including me - would be rotting in prison cells from Rio to Seattle today. Absolute truth is a very rare and dangerous commodity in the context of professional journalism.”

Hunter S thompson

Mon, 05/27/2013 - 01:42 | Link to Comment BringOnTheAsteroid
BringOnTheAsteroid's picture

Can't really see the value in posting this stuff. The so called window will come and go and nothing will happen. Well . . . . when I say nothing will happen, something will happen but not the something the above post portends, more the something of the drudgery of day to day life with innumerable disconnected events that we humans are so fond of connecting. Get with the times. it's been many hundreds of years since humans have learnt that the movement and position of celestial objects has no bearing whatsoever on the behaviour of humans. None, zip, squat, nada. Did you know that a dentist standing next to you in a dental surgery imparts a greater gravitational force on you than does Mars. Ok, I admit, the use of a dentist in the previous example is highly arbitrary but the point remains.

If you can't offer an explanation as to why full moons and eclipses cause market crashes,  or at the very least alter human behaviour, then it's as big a waste of time as seperating sprinkles or hundreds and thousands into their respective colour groups.

"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."

OK, firstly I don't believe the 1 in 127,000 but I'm sure not going to waste my time trying to replicate the the calculation. Secondly, let's just assume the asnwer came out at 1 in 1 quadrillion, now that would be a truly staggering statistic that would give pause to the most cynical sceptic. So then the question would really be pertinent, what causes full mons and eclipses to cause market crashes. I'll go out on a limb here and provide the answer. WE cause the market crashes because a large portion of the population still holds the infantile, prehistoric belief that an eclispse means god is angry and they'd better prepare. This may include seliing stocks, hoarding cash, buying supplies . . . . . . . who knows but do you see the point. If humans believe that an eclipse can cause a market crash it is self fulfilling. To say THE eclispe IS causing the market crash is putting the cart before the horse. What happens in our lives as a collective, as a society is the direct result of the actions our brains have been programmed to enact based on our gentic predisposition, parents, education and many other subtleties.

W're such a complicated, fucked up bunch of scatter brains.

Mon, 05/27/2013 - 04:13 | Link to Comment cnmcdee
cnmcdee's picture

The ecliptical patterns of the planets and their alignments have a HUGE impact on market psychology. Adding in sunspot activity and patterns are found everywhere.  I'd suggest astrocycle.net

Mon, 05/27/2013 - 05:16 | Link to Comment BringOnTheAsteroid
BringOnTheAsteroid's picture

Great, using the laws of planetary motion and gravitation can you please tell me the precise moment to short this mother fucker.

Mon, 05/27/2013 - 07:08 | Link to Comment lakecity55
lakecity55's picture

Hey, for all we know, Bennie could be using asstro-zodiac chartz.

Mon, 05/27/2013 - 08:23 | Link to Comment knukles
knukles's picture

Goldman uses them Swirl-o-grams which hark back to Newtonian construct with the whatever at the center of the whole shebang which, once Astro-Glide is applied seems to have served Goldman well for many years.
So there. 

Proof positive.

Now you'll excuse me while I grab some quick nourishment (and just think, LC, many years ago it used to be getting tanked) before I wander off yonder to project little round ball across green pastures with a buncha of uber-liberals and neo-cons thereby affording the opportunity for significant application of Penick's Needle.

 

Mon, 05/27/2013 - 11:59 | Link to Comment ijunk
ijunk's picture

"Get with the times. it's been many hundreds of years since humans have learnt that the movement and position of celestial objects has no bearing whatsoever on the behaviour of humans. None, zip, squat, nada."

...and yet here you are posting about it.

Mon, 05/27/2013 - 05:43 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

"eject the core and detonate" So you're sucked into the black hole in a million pieces. At least it will be painless.

Sun, 05/26/2013 - 20:18 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

sounds about right.. NKD down 600 .. sure..http://hedge.ly/10Ypgor

Sun, 05/26/2013 - 20:20 | Link to Comment hairball48
hairball48's picture

Anyone believe the sheep will notice when the JGB market implodes dragging down the Nikkei with it?

Sun, 05/26/2013 - 20:30 | Link to Comment TrustWho
TrustWho's picture

Not in America, Daddy Bernanke will protect us from any financial harm, assuming you are LONG!

Sun, 05/26/2013 - 22:33 | Link to Comment Go Tribe
Go Tribe's picture

Well, the 10 year did close above 2.0% on Friday. Hate to say it, but BTFD!

Sun, 05/26/2013 - 20:30 | Link to Comment LetThemEatRand
LetThemEatRand's picture

The last few days, I decided to bite my lip and check out Drudge and Huffington.  On Drudge, one of the primary stories is outrage at the existence of some lesbian themed movie.  On Huffington, if you can get past the side boob stories which are quite numerous, there was a story about one of the Fox News reporters whose computer was hacked by freedom loving government agents.  In the comments, I made it through 20 straight of people suggesting that she is a nutjob who needs a new IT person.  Then I started drinking.  

Sun, 05/26/2013 - 21:03 | Link to Comment infinity8
infinity8's picture

I've been thinking, lately, that I need to do the same so, thanks for saving me the trouble. There has been a lot going on at a much more local level that I wanted to pay attention to (big tax changes primarily). I also have been moved to drink. Cheers and Happy Memorial Day!

Sun, 05/26/2013 - 21:03 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

"Then I started drinking."

Started?????? I haven't stopped drinking since I discovered Zero Hedge.......

Mon, 05/27/2013 - 05:22 | Link to Comment Mentaliusanything
Mentaliusanything's picture

I am ashamed to admit it...... me thinks you have made a statement that could not be fixed by QE

The answer to any problem is Moar Alchohl..... Hic... Hic

Sun, 05/26/2013 - 21:20 | Link to Comment Jayda1850
Jayda1850's picture

Vacationing in New Orleans. was at a bar last night with the wife, and a young german sat down. Tried to engage in a conversation about german politics and economy. German was just as amazed at my knowledge of the subject as I was about his total lack of said knowledge. And I thought it was only Americans that were so self involved not to have any clue as to the going ons of their respective governments. We truly are doomed.

Sun, 05/26/2013 - 22:06 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I got to know a German tourist a few years ago.  One of the smartest, most informed people I've ever known.  But I agree with you that Germany is like all nations in that there are a few very informed people and everyone else.

Sun, 05/26/2013 - 22:41 | Link to Comment espirit
espirit's picture

I've known an American couple of German descent (came here as newly married military), which read the news here then again in German and acknowledge the similar twist.  They know the Global MSM is full of shit and read rather than watch the Idjot Tee Vee.

Mon, 05/27/2013 - 04:24 | Link to Comment Acet
Acet's picture

The vast majority of people out there of all nationalities are clueless about complex issues in the realm of politics and economics. I say this from personal experience (i've lived in 3 countries and speak 5 languages).

They do feel the pain when it hits them, but they don't quite understand why it's there and only a few wake up.

In fact, it goes even further than that: the overwelming majority of people don't actually think all that hard about life and society - they rather just live one day at a time, in a purelly reactive mode and just go along with the flow. Even the ones that supposedly think tend to just eat somebody else's predigested ideological pap, with it's easy parrotable sentences, simple memes and clear good-guys and bad-guys. (ZH is full of people who "think" like that).

If you ponder on that, you can see that's exactly what mainstream media and consumer society trains us to be: mindless sheep, only reacting to direct stimulae - it makes for more impulsive shoppers and more easilly led individuals.

 

Mon, 05/27/2013 - 05:54 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

It's my experience that ordinary people just don't want to know. I have tried to talk to people at work about what's happening and they think I'm some sort of nutty eccentric. The level of financial ignorance in the general community is staggering. I have given up, it is pointless. When this thing implodes they will be walking around like the bewildered saying "What happened? How can this be? No one warned us". Yeah right.

Mon, 05/27/2013 - 07:04 | Link to Comment lakecity55
lakecity55's picture

Agree. But, my grandpa told me we were here on a quest for knowledge, and the primer was a Bible.

Why folks do not want to learn more and more is amazing, esp. with the innertubes available.

Mon, 05/27/2013 - 07:02 | Link to Comment lakecity55
lakecity55's picture

After all the travel I've done, I realized many of the other foreigners I met were well-read because they also traveled as much as I did.

It made sense when I would come back home and say "what, you did not know about the mine collapse in oboganza?"

 

Sun, 05/26/2013 - 22:35 | Link to Comment Go Tribe
Go Tribe's picture

Don't know how old you are, but if it's any consolation there were people like that in Nixon's day, too.  What saves America is that everytime someone tries to blatantly do a coup, even their own party members get fed up and counter-attack.  Is seems to be happening with today's dictator, and we can only hope that continues. If it doesn't, welcome to lawlessness.

Sun, 05/26/2013 - 20:24 | Link to Comment DirkDiggler11
DirkDiggler11's picture

It will be interesting to see what games are played overnight with the US markets closed tomorrow...

Edit: at 20:31 EDT Nikkei down 3%, but zero movement. In PM's right now with both Gold and Silver basically unchanged.

Sun, 05/26/2013 - 20:22 | Link to Comment cebri88
cebri88's picture

So finally this madness is coming to an end. 

Sun, 05/26/2013 - 20:26 | Link to Comment freewolf7
freewolf7's picture

Karma's a beautiful thing.

Sun, 05/26/2013 - 22:19 | Link to Comment Mine Is Bigger
Mine Is Bigger's picture

I think it depends on what "finally" means to you.  Unless you are a really patient person, I suspect it would take longer than "finally."

Sun, 05/26/2013 - 22:46 | Link to Comment espirit
espirit's picture

Reading comments in a SHTF blog from 2 years back, and very little has changed.

The wheels of .gov move slowly, even in collapse mode.

Sun, 05/26/2013 - 20:27 | Link to Comment transaccountin
transaccountin's picture

yet our fantasy markets are near record highs. love this schizo market.

Sun, 05/26/2013 - 20:29 | Link to Comment MichiganMilitiaMan
MichiganMilitiaMan's picture

Dow up 100 points at the open Tuesday.

Sun, 05/26/2013 - 20:36 | Link to Comment Pantafulius
Pantafulius's picture

You have it wrong. It will open down 100 but will levitate all day to close up 160.

Sun, 05/26/2013 - 21:05 | Link to Comment gatorengineer
gatorengineer's picture

Pantafulius --- Its the obvious play until it isnt.... One day it will open down 100 and finish down a 1000........  Maybe not Tuesday, but that day will be in 2013.....

Sun, 05/26/2013 - 22:56 | Link to Comment stocktivity
stocktivity's picture

Big deal!  We'd still be over 14000. It's all Bullshit!!!

Mon, 05/27/2013 - 05:29 | Link to Comment Mentaliusanything
Mentaliusanything's picture

14,000 whats. I keep looking at the Dow and in an error of printing cant find GM listed.

Maybe I need stronger glasses because the Scotch keeps draining out ..... Hic

Sun, 05/26/2013 - 20:30 | Link to Comment bugs_
bugs_'s picture

All back full!  All back full!

Answering all back full.  Passing thirteen hundred fifty feet

fourteen hundred

fourteen fifty

We're losing her.  LAUNCH THE BUOY!

Sun, 05/26/2013 - 22:24 | Link to Comment IridiumRebel
IridiumRebel's picture

DIVE
DIVE
DIVE

Sun, 05/26/2013 - 20:46 | Link to Comment jim249
jim249's picture

deleted

Sun, 05/26/2013 - 20:51 | Link to Comment BigInJapan
BigInJapan's picture

Yen.
Strong like bull.
Dumb like cow.

Sun, 05/26/2013 - 20:56 | Link to Comment RottenAlpha
RottenAlpha's picture

Stable Disequilibrium 

http://alejandrorubinstein.com/?p=1326

 

"Crisis (Latin crisis Greek word) is a time of change in any aspect of reality organized but unstable, subject to evolution, especially the crisis of a structure. If the changes are profound, sudden, violent, and above all, bring far-reaching consequences, beyond a crisis and can be called revolution. 

 

Here we are, living in very special times, which will no doubt be the subject of study in the future. Not only in the field of economics, but also in the social and geopolitical.

 

A priori, it seems we are definitely not living in times of crisis: No change, economies are ongoing (growing at reasonable rates), global stock markets are rising, there are still financing (though more limited and selective), are still sold more products (in particular, the technology sector) continues to globalization and, finally, world peace continues.

 

And there is no crisis, because even though we are experiencing one of the economic and social imbalances probably most important in modern history, those have not led to apparent instability. And if there is no instability, ergo no crisis thus far revolution. (As detailed in the first definition)

 

All analysts with whom I have the opportunity to speak, without exception, admit that we are taking the more radical monetary measures in modern history (printing an unprecedented amount of money), leading to an overall debt of comparable only Great Depression, with very poor growth levels, with levels of income inequality huge with jobless only seen at the time of the World Wars, with average income increasingly have less purchasing power, with paper currency ever buying less.

 

Even the world's central banks themselves have no answer as how we will emerge from this. So now we speak of "permanent stimulus". And despite all that, there is no crisis: everything is stable, unbalanced, but stable.

 

Take note: A feature of any system is its natural fluctuation from stability to instability: Inevitably. It will happen, and crisis will emerge.

Sun, 05/26/2013 - 21:03 | Link to Comment gatorengineer
gatorengineer's picture

Yen is up on repatriation to cover liquidity issues...  Yen up right now is a BAADDDDD thing.....

Sun, 05/26/2013 - 23:44 | Link to Comment Pareto
Pareto's picture

Can't imagine Bass is enjoying this a whole lot.

Sun, 05/26/2013 - 21:15 | Link to Comment chump666
chump666's picture

Watch for 14K capitulation point.  Japan is getting a nasty beat-down.  Why haven't we corrected as hard, or at all?  Yields baby, no major dump just yet.  But japan is the test model for how to create a take down.  Mess with the yields, then panic the stocks.

"Kill with a borrowed knife"

Sun, 05/26/2013 - 21:27 | Link to Comment q99x2
q99x2's picture

Wisdom from the Goldman Sachs gang over at CNBC:

WHAT INVESTORS SHOULD KNOW

Sun, 05/26/2013 - 21:29 | Link to Comment max2205
max2205's picture

Btfd.  Stfb. Works both ways tonight

Sun, 05/26/2013 - 21:29 | Link to Comment buzzsaw99
buzzsaw99's picture

nikkei don't lose that number...

http://www.youtube.com/watch?v=UpHd3ST4d8k

Sun, 05/26/2013 - 22:20 | Link to Comment IridiumRebel
IridiumRebel's picture

Steery Dan! I rove dat band!
"Is da onry one you wan! Ya migh use it if you feer bettah!"

Sun, 05/26/2013 - 22:28 | Link to Comment nmewn
nmewn's picture

A mini Steely Dan concert ;-)

http://www.youtube.com/watch?v=nEjLMEV-MyA

Sun, 05/26/2013 - 22:30 | Link to Comment buzzsaw99
buzzsaw99's picture

do it again ;)

Sun, 05/26/2013 - 22:37 | Link to Comment nmewn
nmewn's picture

lol...not that one but its still an excellent track.

One of my personal favorites...for the memories it invokes...

http://www.youtube.com/watch?v=rBllejn5fVA

Mon, 05/27/2013 - 05:33 | Link to Comment Mentaliusanything
Mentaliusanything's picture

@Buzzsaw99

That was expensive scotch that just burnt my nose........... AND

you owe me a frigging keyboard

Sun, 05/26/2013 - 22:30 | Link to Comment WTFUD
WTFUD's picture

Things are looking up HSBC have agreed to share the proceeds from the Coco with WB&BoAml; On the downside the Taliban are holding out for a 70/30 split on the Poppy harvests.

Sun, 05/26/2013 - 22:40 | Link to Comment ApollyonDestroy
ApollyonDestroy's picture

Sunday Monday Taliban, Tuesday Wednesday Taliban, Thursday Friday Taliban, Saturday what a day no more Taliban!

Sun, 05/26/2013 - 22:49 | Link to Comment sumo
sumo's picture

Meanwhile, deep underground at a secret location, known as Fort Richard M. Nixon, the PA barks to life...

"Attention Plunge Protection Team. Attention Plunge Protection Team. Battle stations. Battle stations. Battle stations. This is NOT a drill.

Attention Plunge Protection Team. Attention Plunge Protection Team. Battle stations. Battle stations. Battle stations. This is NOT a drill. This is NOT a drill..."

Sun, 05/26/2013 - 23:03 | Link to Comment Monedas
Monedas's picture

I don't have to drink .... I have a chemical imbalance in my brain .... that is the equivalent of drinking a fifth of scotch .... every day !        Monedas     1929      Comedy Jihad Waiting 5 Years For Guidance From The President On Racial Dialogue Humour Protocols World Tour

Mon, 05/27/2013 - 02:27 | Link to Comment Monedas
Monedas's picture

Publicity stunt !  The slaves are those who pay taxes .... and there ain't nothing NEW about it !  I'm grateful for any cover  .... any artist .... gives to another !       Monedas     1929       Comedy Jihad Kinder Gentler Racial Joshing World Tour

Sun, 05/26/2013 - 23:13 | Link to Comment Monedas
Monedas's picture

The left blames Nixon .... for everything they and Maynard "Fly in the Mayonaise" Keynes .... did for 100 years ?

Sun, 05/26/2013 - 23:34 | Link to Comment knukles
knukles's picture

Nixon, the New Bush

Sun, 05/26/2013 - 23:32 | Link to Comment chump666
chump666's picture

The f*cker is losing it:

Kuroda - 1-3% rise in Japanese yields would not surprise.

Japan banks will be blown apart by margin calls.  This ship is sinking.

Yo Krugman you watching this?

Sun, 05/26/2013 - 23:35 | Link to Comment knukles
knukles's picture

So much for that carry trade.
Dog, where's my collateral Yo!

Don't look at me that way....

Mon, 05/27/2013 - 01:05 | Link to Comment BigInJapan
BigInJapan's picture

That old cunt needs to go.

Mon, 05/27/2013 - 01:56 | Link to Comment lolmao500
lolmao500's picture

Kuroda - 1-3% rise in Japanese yields would not surprise.

And that doesn't alarm you??? LOL! Kuroda is fucking insane indeed...

Mon, 05/27/2013 - 02:22 | Link to Comment q99x2
q99x2's picture

I have an idea. The Central Banks should all do like Japan and buy 100% of all bonds and then go out of business forever.

Mon, 05/27/2013 - 03:01 | Link to Comment Hobbleknee
Hobbleknee's picture

Kyle Bass called it.

Mon, 05/27/2013 - 05:39 | Link to Comment Mentaliusanything
Mentaliusanything's picture

But he did not build it?

Mon, 05/27/2013 - 06:07 | Link to Comment PaperBear
PaperBear's picture

Meanwhile gold is up 0.5% and silver is up 1.3%

Mon, 05/27/2013 - 06:20 | Link to Comment NipponMarketBlog
NipponMarketBlog's picture

 

 

It is one thing for the BoJ policy committee to be in less than perfect agreement. It is quite another to publisize this disagreement, in a situation where the ONLY thing stopping the JGB market from collapsing is the confidence (however tenuous) among investors that the BoJ and the government is 100% committed.

 

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

Do NOT follow this link or you will be banned from the site!