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Japanese Stocks Extend Overnight Plunge - Down Over 14% From Highs

Tyler Durden's picture




 

As if the overnight session in Japan was not bad enough, futures markets are indicating yet more weakness from the market that seemed (until 3 days ago) incapable of falling. With a 14.3% drop from its May 22nd highs, Japan's Nikkei 225 is struggling to find buyers for this dip. What is interesting is the bid for European peripheral debt and equity markets this morning and the bounce in US futures (with no commensurate move in JPY which is hovering around 101). Gold and Silver are up around 1% with the USD unchanged. Treasury Futures imply a rise of 1-2bps in yield.

 

 

and just as the NKY saw its blow-off top, now US equities are ignoring the drop (for now)...

 

(h/t Sean Corrigan)

 

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Mon, 05/27/2013 - 08:26 | 3600779 eigenvalue
eigenvalue's picture

Today is Memorial Day. It is a day of remembering those stupid gold and silver bugs who will die in the next crash in the PM markets.

Gold and silver to ZERO!

Die, die, die, gold and silver bugs!

In stocks we trust!

Mon, 05/27/2013 - 08:31 | 3600791 Dr. Engali
Dr. Engali's picture

Well death is a little extreme. How about a really bad flesh wound? Or maybe some horrible hiccups.

Mon, 05/27/2013 - 08:37 | 3600806 kaiserhoff
kaiserhoff's picture

Quick, someone prop up Dick Bove's cadaver so he can tell us that Bear and Lehman are fine.

Mon, 05/27/2013 - 08:57 | 3600843 Spirit Of Truth
Spirit Of Truth's picture

Puetz eclipse crash window with 5/25 lunar eclipse: 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."


Mon, 05/27/2013 - 09:04 | 3600859 Non Passaran
Non Passaran's picture

Yes, we know, you posted this in other places too.
Now bugger off and stop spamming.

Mon, 05/27/2013 - 16:52 | 3601822 long-shorty
long-shorty's picture

this would make a great quiz question for third-year medical students on their psych rotation...

"A blogger non-comedically lists 'saving human civilization' in the 'interests' section of his website. The blog tells of a life-changing 'revelation' of nuclear holocaust the author experienced 20 years ago. Assuming the blogger is not a schizophrenic, what personality disorder is the blogger most likely suffering from?"

 

Mon, 05/27/2013 - 08:33 | 3600800 Bearwagon
Bearwagon's picture

Even if they all would die - their gold and silver would still be there (sitting where it was put and doing nothing)- In rod we trust!

Mon, 05/27/2013 - 08:36 | 3600804 MassDecep
MassDecep's picture

We could only hope for PM's to crash...Then I could really buy tons and  take delivery!!!

Mon, 05/27/2013 - 08:40 | 3600810 eigenvalue
eigenvalue's picture

Gold and silver will become so hated that even the ZERO boundary will be broken. We shall see NEGATIVE prices for gold and silver.

Mon, 05/27/2013 - 08:46 | 3600822 Divine Wind
Divine Wind's picture

 

 

What a dick.

Keep buying paper. But, buy, buy.

In the end, we will see who prevails.

Mon, 05/27/2013 - 08:54 | 3600834 ATM
ATM's picture

That's an interesting idea but if real things like Gold and Silver have negative prices, what will be the prices of other real things like corn, toothpaste and tampons? 

I think you may be right but the problem you seem to have is a failure to understand that price has two variables. One is the underlying article whose price is to be determined and the other is the artificial unit that price is measured in.

In the case of fiat currency it is impossible to determine the unit VALUE because of the very nature of fiat currency. It is unbound by a limit. So in essence you wish to determine a va;ue yet fiat currency is a an artifice which cannot be used to represent value.

It's a simple math problem.The denominator in your equation is infinity fiat currency. What's the total? 

Mon, 05/27/2013 - 09:35 | 3600896 Zero Govt
Zero Govt's picture

"..corn, toothpaste and tampons" are real things now i come to think about it

my thought for the day, thanks

Mon, 05/27/2013 - 09:41 | 3600904 kito
kito's picture

Eigen you are so cryptic.....

Mon, 05/27/2013 - 10:31 | 3601011 Bay of Pigs
Bay of Pigs's picture

What's up with this wingnut? He's been around quite awhile, and I don't remember him doing the MDB routine?

 

Mon, 05/27/2013 - 10:41 | 3601020 angel_of_joy
angel_of_joy's picture

Cryptic ?

He's just dumb... and boring.

Never attribute to malice that which is adequately explained by stupidity.

R.J. Hanlon

Mon, 05/27/2013 - 10:22 | 3600998 MrNude
MrNude's picture

> We shall see NEGATIVE prices for gold and silver.

 

The Chinese must love you buddy.

Mon, 05/27/2013 - 11:33 | 3601142 WAMO556
WAMO556's picture

When?

Mon, 05/27/2013 - 08:38 | 3600807 negative rates
negative rates's picture

Around here it's in debt we trust.

Mon, 05/27/2013 - 08:42 | 3600813 BadKiTTy
BadKiTTy's picture

@ eigenvalue "It is a day of remembering those stupid gold and silver bugs who will die in the next crash in the PM markets.

Gold and silver to ZERO!"

Funny that when the nikkei comes off in one session the same amount gold comes off in one session I dont hear cries of the nikkei going to zero!!! 

Why's that?

 

K@

Mon, 05/27/2013 - 10:36 | 3601016 angel_of_joy
angel_of_joy's picture

Gold & Silver will NEVER go to zero.

It never happend in the history of humanity.

That's a feature reserved for paper instruments.

GFYS !

Mon, 05/27/2013 - 11:29 | 3601132 Atomizer
Atomizer's picture

Ron Paul vs. Bernanke: Is Gold Money? - July 13, 2011

Gold is tradition.

- Ben Bernanke 2011

Mon, 05/27/2013 - 08:26 | 3600780 Dr. Engali
Dr. Engali's picture

Imagine that. No bid in an artificially inflated market. Who would have thunk it? Certainly not the idiot central planners of the world.

Mon, 05/27/2013 - 08:27 | 3600782 ekm
ekm's picture

There hasn't been a genuine bid since QE2.

It's been all Primary Dealers.

Mon, 05/27/2013 - 08:39 | 3600809 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

or speculators who think they can slip through the fire exit before it becomes plugged with suffocated corpses....

Mon, 05/27/2013 - 08:44 | 3600818 BandGap
BandGap's picture

Yep, those guys with "quick feet".

Mon, 05/27/2013 - 08:50 | 3600826 ekm
ekm's picture

Partially, I'd say.

Speculators buy and ........sell (remember that?).

 

Primary Dealers are only......buying.

 

Reason?

Because gov told them so, since the distorted logic is.......gov can't lose money, that's why...stupid logic goes....gov should spend and gov should own and run the economy.

Mon, 05/27/2013 - 08:59 | 3600846 ATM
ATM's picture

Q: 'Speculators" are usuing whose money?

A: Central Bank money 

 

Therefore we can summarize: Central Bankers = Speculators

Mon, 05/27/2013 - 08:53 | 3600830 fonzannoon
fonzannoon's picture

You guys are all crazy. Japanese bonds and the Yen are getting bid. Their stock market is up 70% even after this hiccup. If anything this is a healthy correction. God forbid we should ever have one. It's a holiday and the banks will be open tomorrow. Now throw a horseburger on the bbq and crack open a coors light that has 50 gimmicks to tell you how cold your beer is because just holding it is no longer an indication and sing our national anthem with me.

http://www.youtube.com/watch?v=G_KDAicF0Yo

Mon, 05/27/2013 - 09:00 | 3600852 ATM
ATM's picture

"Frost Brewed"........ Where are the truth in advertisers on that bullshit slogan.

Mon, 05/27/2013 - 09:07 | 3600863 MythicalFish
MythicalFish's picture

+1 for 9am beer consumption

 

Cheers!

Mon, 05/27/2013 - 09:25 | 3600881 fonzannoon
fonzannoon's picture

That's the spirit!

Mon, 05/27/2013 - 14:47 | 3601525 Aurora Ex Machina
Aurora Ex Machina's picture

Junked for linking to the man who stole Bill Hick's routines.

Mon, 05/27/2013 - 16:53 | 3601764 trader1
trader1's picture

thanks for sharing hicks....

the best stand-up routine i've ever seen

?

enlighten me ;-)

Mon, 05/27/2013 - 08:36 | 3600783 GetZeeGold
GetZeeGold's picture

 

 

Didn't see it coming really.

 

Some one do us a favor and throw Eigen a silver dollar.....he sure is never in hell going to buy one.

Mon, 05/27/2013 - 09:50 | 3600921 robertocarlos
robertocarlos's picture

I am also not to be buying any silver kind sir.

Mon, 05/27/2013 - 08:28 | 3600785 knukles
knukles's picture

"Print more.  Why?  Because they haven't done enough for it to work, yet."
  -was either HS Thompson or Paul Krugman

Mon, 05/27/2013 - 08:31 | 3600793 BigInJapan
BigInJapan's picture

Any Hunter S Thompson reference gets an up arrow from me!

Mon, 05/27/2013 - 11:46 | 3601183 SeattleBruce
SeattleBruce's picture

This is also the definition of insanity...(but don't tell the Keynesians, because they think they're brilliant.)

Mon, 05/27/2013 - 09:41 | 3600906 resurger
resurger's picture

Do they have Algos?

Let's outsource some algos for them i say.

Mon, 05/27/2013 - 08:29 | 3600787 BigInJapan
BigInJapan's picture

Rook outo berow!

Mon, 05/27/2013 - 08:30 | 3600792 Bearwagon
Bearwagon's picture

Pah! In whatever has replaced our beloved "markets" obviously nobody needs anything more than an "ask". Face it, people: "Bids" are just as dead and gone as "markets". Move on, nothing to see here ...

Mon, 05/27/2013 - 08:32 | 3600796 PontifexMaximus
PontifexMaximus's picture

european markets need desperately these bad japanese markets, with US and UK markets closed, to move strongly to day highs.

Mon, 05/27/2013 - 08:32 | 3600799 polo007
polo007's picture

http://www.bloomberg.com/news/2013-05-27/china-said-to-study-investing-reserves-in-u-s-property-market.html

China is studying the possibility of investing a portion of its $3.4 trillion in foreign-exchange reserves in U.S. real estate, said two people with direct knowledge of the situation.

The State Administration of Foreign Exchange began the study after seeing signs of a recovery in the U.S. property market, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. China may acquire properties, invest in real estate funds or buy stakes in property companies, they said. The safety of the investments will be the top priority, said the people, who didn’t elaborate on a timetable or other details.

China has set up an operation in New York to make alternative investments in the U.S., an effort by the country’s foreign-exchange reserves manager to diversify away from U.S. government debt, the Wall Street Journal reported last week, citing people it didn’t identify.

Prices for single-family homes increased in 89 percent of U.S. cities in the first quarter as the housing market extended its recovery following a five-year slump. The median sales price rose in 133 of 150 metropolitan areas measured from 74 year earlier, the National Association of Realtors said in a report on May 9.

“In the long run it should be a good opportunity as the U.S. property market is gradually rebounding,” said Frank Chen, Shanghai-based head of China research at CBRE Group Inc. “It will help diversify the foreign reserves’ investment portfolio. Properties such as office building have stable yields, which match its investment strategies.”

Mon, 05/27/2013 - 08:41 | 3600811 SpanishGoop
SpanishGoop's picture

I thought the Chinese already owned America.

 

Mon, 05/27/2013 - 09:49 | 3600916 espirit
espirit's picture

I have an uneasy feeling that there is an effort in the works to allow tax exempt status to Chinese foreign nationals who purchase property in the U.S.

...or maybe it's the beans, burgers, and brew I'd had for breakfast.

Mon, 05/27/2013 - 08:45 | 3600820 BobPaulson
BobPaulson's picture

Funny you should mention that on a post about Japan. The Japanese were going to buy all the US real estate in the 90s weren't they? I see that worked out really well for them.

Mon, 05/27/2013 - 09:02 | 3600855 ATM
ATM's picture

Japanese real estate class 101

 

Buy high

Sell Row.

Mon, 05/27/2013 - 21:02 | 3602386 NIETSNEREM
NIETSNEREM's picture

Classic reverse indicator. Remember how the Japanese started buying Real Estate in the 1980's and everyone thought that they would then "own" the U.S.?

Mon, 05/27/2013 - 08:39 | 3600808 curious1
curious1's picture

Kuroda: hi Ben-San. This is kuroda. I love ur work on depression of 1930 so much that I am also experimenting your theory on my countrymen. I don't think they are guinea pig because I have full faith in u and Timmy-San.
Bernanke: fair enough. Tell me what can I do. I am busy, you know it is long weekend here. Is it something quick.

Kuroda: oh, sorry. Yes, yes.
Kuroda: how do u control S&P500, while u do $85 billion dilution each month..

Bernanke: haha.. It is simple than u think. You japs are naive and fucktards. No offense, just kidding. Just buy nikkei index, I buy spy and mini e futures all the time. All Americans love me, esp in Hamptons & wall st, even general ppl when they see their 401k rise, they almost start masturbating. And that's how you jump start the economy. Now, I gotta go. Steak is waiting for me.

Kuroda: I appreciate ur help. And I didn't mind fuktard comment, I know it was in jest. I ll see what I can do. Enjoy your weekend and pray for me. Bye

Mon, 05/27/2013 - 10:04 | 3600851 BobPaulson
BobPaulson's picture

I think Ben-San might give this advice: Emerge from a world war conveniently with no damage to your country and proceed to finance and buy all the manufacturing assets in the countries you nuked/defeated or allied with. Use your influence to take control of the Saudi monarchy. Build a huge navy to exert hegemony and a massive nuclear arsenal to contain your enemies. Use the hegemony over manufacturing, oil and arms to make your national currency the world reserve currency. What's that you say? You aren't the world reserve currency? Then your QE effectiveness will be like a fart in a hurricane. Good luck with that. 

(Chapter 2 is where in spite of having the world by the balls, the US screws the pooch by abandoning what made them great like freedom, the rule of law, science, hard work, manufacturing, stable currency and rights).

Mon, 05/27/2013 - 11:25 | 3601119 disabledvet
disabledvet's picture

pretty much. look forward to part two as well. you can title it "Vietnam" if you like.

Mon, 05/27/2013 - 08:43 | 3600814 jubber
jubber's picture

You would never believe the US  market was closed, yet another pump, and a 80 point swing on the DOW, incredible

Mon, 05/27/2013 - 08:49 | 3600825 NipponMarketBlog
NipponMarketBlog's picture

 

 

For the next 6 months: Sell assets - buy volatility (option straddles).

 

http://nipponmarketblog.wordpress.com/

Mon, 05/27/2013 - 09:14 | 3600869 MajorWoody
MajorWoody's picture

Holy agenda Batman, ?? much?

Mon, 05/27/2013 - 08:48 | 3600827 Divine Wind
Divine Wind's picture

 

 

Japan: Land of the Setting Sun

Mon, 05/27/2013 - 08:57 | 3600841 Non Passaran
Non Passaran's picture

Sun first sets down in the West.

Mon, 05/27/2013 - 08:54 | 3600833 CheapBastard
CheapBastard's picture

Stocks, like houses, are overpriced. The Great Correction is coming.

Mon, 05/27/2013 - 09:21 | 3600876 sumo
sumo's picture

Relax. It's contained, like subprime. PhD economists from really good schools are in control. What could go wrong?

Mon, 05/27/2013 - 09:40 | 3600902 Aurora Ex Machina
Mon, 05/27/2013 - 09:46 | 3600903 Zero Govt
Zero Govt's picture

well what could go wrong for the PhD economists is the education system itself goes broke, as in bankrupt, with Govt and all the other worthless institutions our economy is stuufed with (Insurance, Healthcare, Accountancy and Railways anybody????)

this is going to be a terrible Great Depession but there'll be some real funnies along the way like PhD's all losing their worthless jobs

Mon, 05/27/2013 - 09:53 | 3600930 espirit
espirit's picture

Well, they could get jobs as post hole diggers - cause they have the PhD shingle to prove they're qualified.

Mon, 05/27/2013 - 09:42 | 3600907 adr
adr's picture

A lie is easier to sell than the truth, if the lie is something people want to believe.

Animal Spirits is the selling of the greatest lie ever told. Do you want to believe your home is declining in value? Or do you want to believe it has increased in value?

The realization of the increased value can only come when you actually sell. When you do, you may find the belief in the increase was false. But, if the belief got you to spend more money, the goal of the liar was met.

Savers are the enemy of the corporatist army. A saver is seen as someone not doing their duty, to part with their money and give it to the corporatists in exchange for a worthless overpriced trinket.

Japan is a nation of savers, and most believe to live within your means. Millions of people happy to live four people to 800sq ft. A midwest US starter home is a palace to most Japanese.

So the Japanese government has decided to try and part millions of citizens from their savings by trying to make the savings wothless. The gamble is expecting the long memry of the Japanese to evaporate. Most remember than the Yen traded at 130 yen per dollar a very short time ago. The average over the past 20 years hovers just over 100. The lie was 76 yen per dollar, and most Japanese know it.

If you had 1 billion yen stashed away in 2005, you still have 1 billion yen in 2013. Yes if you transfered all your yen to dollars in 2005, and transfered all your dollars back to yen in 2012, you'd have a lot more than 1 billion yen. 99% of the people would never do that.

What Abe did was destroy the luxury American tourist market. Wealthy Japanese went on a buying binge in LA and NY. Buying expensive suits, jewelry, watches, luggage, etc. In the past few months they went crazy, spending money like mad before the purchasing power was lost. Essentially they were spending the profit they made off the insane rise of the Yen against the Dollar over the past four years. After any binge, comes the hangover. You'll see that now.

You'll never get a Japanese citizen to part with their principal. They'll spend profits, but they won't stomach a loss.

Mon, 05/27/2013 - 09:45 | 3600913 ZeroPoint
ZeroPoint's picture

Where is the Bernanke? Shouldn't he be snapping up all the worthless Japanese toilet paper?

Mon, 05/27/2013 - 09:58 | 3600943 espirit
espirit's picture

Perhaps tomorrow.

Mon, 05/27/2013 - 10:40 | 3601023 Money 4 Nothing
Money 4 Nothing's picture

Bernanki put it there to begin with.

 

http://www.tomheneghanbriefings.com/

Mon, 05/27/2013 - 10:06 | 3600966 Stares straight...
Stares straight ahead's picture

Who could possibly be buying all of that yen?!
WHO?

Mon, 05/27/2013 - 10:10 | 3600978 americanspirit
americanspirit's picture

Want to bring down the house of cards in both the US and Japan instantly? Oil to $200.

Now who would want to do anything that damaging to the wealthy elite of two such wonderful countries?

Mon, 05/27/2013 - 11:39 | 3601161 Son of Loki
Son of Loki's picture

I thought we weren't allowed to day the word, "plunge" in public anymore.

Mon, 05/27/2013 - 11:45 | 3601181 Mr_Wonderful
Mr_Wonderful's picture

First the pump, then the dump.

Soon in other markets.

 

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