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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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!

Dr. Engali's picture

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

kaiserhoff's picture

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

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."

Non Passaran's picture

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

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?"


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!

MassDecep's picture

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

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.

Divine Wind's picture



What a dick.

Keep buying paper. But, buy, buy.

In the end, we will see who prevails.

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? 

Zero Govt's picture

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

my thought for the day, thanks

kito's picture

Eigen you are so cryptic.....

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?


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

MrNude's picture

> We shall see NEGATIVE prices for gold and silver.


The Chinese must love you buddy.

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?



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.


Atomizer's picture

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

Gold is tradition.

- Ben Bernanke 2011

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.

ekm's picture

There hasn't been a genuine bid since QE2.

It's been all Primary Dealers.

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....

BandGap's picture

Yep, those guys with "quick feet".

ekm's picture

Partially, I'd say.

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


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



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.

ATM's picture

Q: 'Speculators" are usuing whose money?

A: Central Bank money 


Therefore we can summarize: Central Bankers = Speculators

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.


ATM's picture

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

MythicalFish's picture

+1 for 9am beer consumption



Aurora Ex Machina's picture

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

trader1's picture

thanks for sharing hicks....

the best stand-up routine i've ever seen


enlighten me ;-)

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.

robertocarlos's picture

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

knukles's picture

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

BigInJapan's picture

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

SeattleBruce's picture

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

resurger's picture

Do they have Algos?

Let's outsource some algos for them i say.

BigInJapan's picture

Rook outo berow!

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 ...

PontifexMaximus's picture

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

polo007's picture


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.”

SpanishGoop's picture

I thought the Chinese already owned America.


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.

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.

ATM's picture

Japanese real estate class 101


Buy high

Sell Row.

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.?

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

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).

disabledvet's picture

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