Dead-Cat-Bounce Dies As Nikkei Drops Over 400 Points From US Highs

Tyler Durden's picture


Mixed data from Japan did nothing to excite and while markets oscillated for a few hours after the US close (and subsequent pile-driver from AMZN), they are now unwinding most of the dead-cat-bounce seen during the US day-session. Japanese stocks are back at fresh 2-month lows with the Nikkei 225 under 15,000 (down over 400 points from day-session highs) and testing debt-ceiling lows. JPY strength has driven USDJPY back below 102.50 and therefore US futures are re-tumbling - down 14 points from US day-session highs. EM FX is drifting lower. With China about to dark for a week for lunar new year, this could get interesting very fast.


Dow futures are pressing towards pre-Taper lows... and Japan has lost support back to the debt-ceiling lows...


Of course, it's all about the JPY... for Japanese stocks (though the correlations are started to creak - which will be a huge worry for Abe)


and the same for US futures...



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Fri, 01/31/2014 - 00:46 | 4386826 prains
prains's picture

It's Okay satoshi911 and bonestar will tell us what's really going on

Fri, 01/31/2014 - 00:50 | 4386838 zorba THE GREEK
zorba THE GREEK's picture

Just go back to monkey-hammering gold and silver.....I can wait.

Fri, 01/31/2014 - 00:58 | 4386853 Oh regional Indian
Oh regional Indian's picture

The four words that will really kill this fiat money Hydra....

"Yen Carry Trade Unwind".....

When that really begins, in earnest, especially with the "rate" mechanisms seeming to have gone "apoplectic", it is the underlying tsunami of yen that has been running around through the fingers of globally connected douchbags for 66 years now that will really kill japan and then the rest of the world.

Rising Sun, Setting Yen....


Fri, 01/31/2014 - 01:29 | 4386915 disabledvet
disabledvet's picture

I absolutely one hundred percent agree with this. "We have reached peak ludicrous."

It's too bad there was no to ticker symbol BARF the President couldn't have rocketed higher in the SOTU so we all could "get the joke."

Nay...even our "rulers" have fooled themselves this time.
"You" clearing a thousand percent in a day is not paying for anything. How anyone could imagine Wall Street not "getting" that is simply my ability to understand.

In effect money...public monies..."currency" if you not an "insider trading mechanism" you MORONS.

It is as simple as "whether you get your money back that you have loaned out is your problem...not We the People's."

In other words if its all about the bailouts...what in fact is even the function of Government at all?

Fri, 01/31/2014 - 03:45 | 4387030 bigkahuna
bigkahuna's picture

The government is TP, TP for the bung.

Fri, 01/31/2014 - 07:50 | 4387189 GetZeeGold
GetZeeGold's picture



DAMMIT.....I really liked that cat too.

Fri, 01/31/2014 - 04:33 | 4387058 Wait What
Wait What's picture

speaking of death:

Russell Investments Chief Economist found dead at the side of a highway. Death appeared to be a suicide.

i'm guessing his 'problems at work' has something to do with failed econometric models.


Fri, 01/31/2014 - 05:02 | 4387072 lakecity55
lakecity55's picture

moar banksters jumping...canaries in the mines....

Fri, 01/31/2014 - 05:25 | 4387085 Headbanger
Headbanger's picture

That's really sad to see again. 

And I haven't seen a banker neighbor for several months now. Just his wife driving their beeemer POS now and then.

Fri, 01/31/2014 - 07:08 | 4387147 Oldwood
Oldwood's picture

There seems to be a general lack of curiosity as to why someone would choose to kill themselves by jumping of a 50 foot cliff. Death being something less than certain given the young girl who's chute failed open last week is up and walking today. Sounds like more of a toss than a jump.

Fri, 01/31/2014 - 07:26 | 4387172 Winston Churchill
Winston Churchill's picture

3/4 this week.

Might be a pandemic.I live in hope.

Fri, 01/31/2014 - 08:09 | 4387214 skipjack
skipjack's picture

When we see the banking top cockroaches jump, then we know to go to the bomb shelter.

Fri, 01/31/2014 - 01:07 | 4386877 Lets Buy The Dip
Lets Buy The Dip's picture

 satoshi911 is a hoot!

but Will History Repeat

U.S. stocks are on pace to close a volatile January in the red, after posting the best yearly gain in 16 years.

There is that saying on wall street…. “As January goes, so goes the year?”

I guess it is just a saying, but we shall see.

The market has taken a bit of a dive, however today we got back in our sideways range as you can see below.

Fri, 01/31/2014 - 01:39 | 4386928 The Vineyard
The Vineyard's picture

Japan's in a deflationary depression.  America's in a deflationary depression.  You say tomato.  I say tomatoe.  Let's call the whole thing off. 

Fri, 01/31/2014 - 08:29 | 4387250 Frozen IcQb
Frozen IcQb's picture

It's not deflation when only the things you want are going down while the things you need are going up.

Personally, I could use a bit of deflation to make my savings go further. Wiping out a few debt junkies in the process would be a good thing.


Fri, 01/31/2014 - 00:52 | 4386842 Mr Pink
Mr Pink's picture

Lots of things "could get real interesting" lately but my bet is tomorrow morning US stocks rip and PMs get monkey hammered just like every other day is bizarro world

Fri, 01/31/2014 - 01:17 | 4386891 HulkHogan
HulkHogan's picture

"US futures are re-tumbling - down 14 points from US day..."


Since when did 14 points become a "tumble." C'mon Tylers, just buy FB and all your worries will go away.

Fri, 01/31/2014 - 07:59 | 4387202 Vice
Vice's picture



Down a nice 16 right now in the spoo. 


Aside from the BS that will probably rally these fuckers back into the green for the day, I really am enjoying this volatility. Very refreshing for the last 4 years of slow grind Bernie. 

Fri, 01/31/2014 - 04:57 | 4387070 lakecity55
lakecity55's picture

Yep. Until one day it does not.

Fri, 01/31/2014 - 05:07 | 4387077 new game
new game's picture

deflationary forces, yea even with all this fiat awash ,is at play for these non essential things in life called gold. oh, not hip on the manipulation. but the reality with many stuffs will  get hit.

it about demand in a depression.  wait a tad for the "great woosh". it will be fast and worth taking a day off just to buy assets and gold will  be one of them.



Fri, 01/31/2014 - 08:02 | 4387207 new game
new game's picture

can you see your feet?

Fri, 01/31/2014 - 00:59 | 4386855's picture

FinCen issued some really promising Bitcoin guidance today.  Looks like the US is going to take a pretty reasonable approach.


Fri, 01/31/2014 - 01:21 | 4386901 ebworthen
ebworthen's picture

No doublt it iwll be a "reasonable" approach just like the persecutions of Bradley Manning and Edward Snowden.

The operative term for you to understand is "trust no one".

Fri, 01/31/2014 - 07:28 | 4387169 Being Free
Being Free's picture

Looks like the US is going to take a pretty reasonable approach.

If this is not a big fucking warning sign re the whole bitcoin/vc emergence then you're not paying attention.

[edit/add: +1 for posting the links/info]

Fri, 01/31/2014 - 01:01 | 4386862 The Shootist
The Shootist's picture

Hmmm. Most unfair dying systems are overturned by villagers with pitchforks. So, this may take a while with the sheep getting new MyRAs.

Fri, 01/31/2014 - 03:50 | 4387033 bigkahuna
bigkahuna's picture

the sheep don't even know they are sheep - they probably never will...

Fri, 01/31/2014 - 01:08 | 4386868 J S Bach
J S Bach's picture

The Chinese holiday "Year of the Drag On" is upon us.  


Patience Grasshoppers.

Fri, 01/31/2014 - 01:24 | 4386908 ebworthen
ebworthen's picture

Yeah, tech. support for my new video card non-existent for five days.

At least they get more than one day off over there.

Fri, 01/31/2014 - 01:30 | 4386920 disabledvet
disabledvet's picture

the recovery is alive! in India!

Fri, 01/31/2014 - 02:32 | 4386969 Squid-puppets a...
Squid-puppets a-go-go's picture

its actually the Chinese year of the horse: ie, not to be mistaken for a Bull

Fri, 01/31/2014 - 01:07 | 4386869 q99x2
q99x2's picture

My belief is that the FED has a policy in place to hold positions in the markets to prevent the fall of the stock indexes. Since the policy is under National Security you will never hear of it publicly. The reason I believe this is from watching the indexes before and after December 2011.

Bernanke ChairSatan of the past let everyone know that stocks were not over-valued. What he really meant to say was: Buy The Fucking Dip.

Fri, 01/31/2014 - 01:33 | 4386925 disabledvet
disabledvet's picture


But they forgot one "teeny thing." If all of the American labor force is now expendable...what do we need Government for?

Haven't "we" (meaning Capitalsim) already outsourced that too?

Fri, 01/31/2014 - 01:05 | 4386870 Jim in MN
Jim in MN's picture

Veteran NHK business reporter quits after bosses tell him to drop topic of nuclear power during Tokyo elections:

For about 20 years, Toru Nakakita, a professor of economics at Toyo University, had been in charge of the “Business Outlook” segment of the “Radio Asa Ichiban” show aired weekdays from 5 a.m. to 8 a.m. on NHK Radio Daiichi.

Nakakita said his original manuscript for the Jan. 30 program pointed out the increase in costs for the resumption of nuclear reactor operations, saying “damages to be paid in the wake of a nuclear plant accident are extraordinarily high.”

However, when he showed the manuscript to a program director on the day before the scheduled broadcast, Nakakita was asked to change the theme.

He said that NHK told him not to talk about “nuclear issues during the Tokyo gubernatorial election campaign period.” The election is scheduled for Feb. 9.

Fri, 01/31/2014 - 01:17 | 4386899 ebworthen
ebworthen's picture


"Thou shalt not mention the skeleton in the closet, or the Father in lingerie!"

Fri, 01/31/2014 - 01:18 | 4386879 Atomizer
Atomizer's picture

OoWe just monkey hammer to get money 

When we threaten the emerging markets with penalties clauses. They fucking manipulate all floating currencies. This is what is happening to all central bankruptcy.

Fri, 01/31/2014 - 01:16 | 4386893 ebworthen
ebworthen's picture

What the Hell?

Did Godzilla just make landfall and smoke some tanks and jets?

We can only hope so!!!

Fri, 01/31/2014 - 01:25 | 4386910 Atomizer
Atomizer's picture

Just relax and watch the show unwind. DC is broken, they will find new ways to support out of control spending.

Fri, 01/31/2014 - 01:36 | 4386927 disabledvet
disabledvet's picture

well it won't be with a return to the gold standard that's fer sure!

Fri, 01/31/2014 - 01:48 | 4386940 ReactionToClose...
ReactionToClosedMinds's picture

excuse me ZH if I missed this ... can only read so much each day as must attend to biz...

...point:  sorry if Tylers have pointed this out.     Methinks PRChina and 'new' regime is playing a crafty game of controlled misleading F**k U to Abe and 2nd USA.   Via plants in jornolist western .news. media China is calling attention to their recognizeable credit issues ..... but this is LKabuki theatre .... it is too obvious.    So point if it is so obvious?    Force safe haven bids into JYen and USD (and Euro) while they stage manage a 'credit' collapse to punish the non-inner circle corny capitalist prineclings (sophisticated regime change clean-out is one way to look at this...)

  1. Japan's fuse may have been lit a little earlier than expected and china could not be happier (this is an animosity level I understand historically but this is like the desperate attempt to re-direct a fire with your own firewall ...poor analogy but conceptually what I mean)
  2. USA and idea of 3.2% GDP is gonna get taken out with a  stronger temporarily manufactured safe haven dollar...... a lull before we see some real stagflation  in later 2014
  3. this might be a knock-on impact to EU but methinks China is really messing with Abe as they legitimately in their own way 'burn' populace a little for trust product run-up........ better sheeple electronic dog fence collar in future  ...while 'cleaning out' the regime contest losers as sitting lurking threats.   
  4. Never trust a jornolist unless you know the individual's credibility story by story versus who buys them out as propagandists or tools for some scheme (see Sir Comrade Block) ...especially when it seems present Whoite House occupant is only entity willing to give them a career saving job
  5. maybe they factored in that this will mess with India moreso ....... honestly have not looked at that
  6. emerging market countries (excepting Russkies) may have to pay respect further to China as they watch US Federal Reserve torch with a 'what me worry" Alfred E Neuman look

Bonus comment:  Whatever MyRA becomes as it is not even officially presented clearly is an attempt at a sheeple 'bail-in' in some form or another .... sure seems US Tresury directed.  Is this a sop for China doing a last round of Treasury buys in 2013?

I feel there is some legitimate basis for the Abe-light-up .... Japan is getting kicked as it heads down ...... with a smile no less

Fri, 01/31/2014 - 01:58 | 4386946 ReactionToClose...
ReactionToClosedMinds's picture

just read some other stuff that essentially underscores above...

China craftily messing with Abenomics......a dangerous game maybe ...but well played one has to admit ...with bonus extras in terms of USA, India and emerging mkts (excepting Russkies) ...maybe they modeled in some benefit via EU

And remember ... this is being done while the US Federal Reserve is in transition to a new Chairwoman ....all hail the non-ideological new consensus maker of Team 44 governors

Fri, 01/31/2014 - 02:19 | 4386960 walküre
walküre's picture

S&P will be flirting with 1776 give or take for the rest of the year.

It's Groundhog Year. Now why does 1776 ring a bell?

Fri, 01/31/2014 - 02:39 | 4386973 Colonel Klink
Colonel Klink's picture

Dead Yen walking!

Fri, 01/31/2014 - 02:42 | 4386977 Seal
Seal's picture

no worries Matey -"The Government Comes Up With the Money" 

Fri, 01/31/2014 - 05:29 | 4387087 new game
new game's picture

above comments evict a thought;who can take the biggest dump.

and the shit trickles right to the people that should throw it right back in their face.

actually the face should be riped right the fuck off as in _____...

Fri, 01/31/2014 - 06:30 | 4387094 new game
new game's picture

looking to be a dump friday-futures t-50 and shit trickling down mam and pap...

lower lows.

s and p 1750 sooon.


edit- t-100 and counting.

ha - just read an article at bloomberg-market suprised by flight to treasuries-best mo since...

da, playing right into the feds taper. withdrawing suport from 85 to 65 creates the fx turmoil.

jpy aproaches 102-some geeting very wealth trade by zhers-congrates to you-you deserve!

was not without risk...

Fri, 01/31/2014 - 05:52 | 4387102 Warrior85
Warrior85's picture

Going down today! I hope the traders I copy are on the right side of the trade.

Fri, 01/31/2014 - 07:27 | 4387170 DavrosoftheDaleks
DavrosoftheDaleks's picture

Yesterday's looking like an island reversal in a downtrend for the SPY.  Hope you all bought gold yesterday.

Fri, 01/31/2014 - 07:30 | 4387178 Winston Churchill
Winston Churchill's picture

Only a couple of lbs.

Wish I had bought more now.

Fri, 01/31/2014 - 07:42 | 4387188 One And Only
One And Only's picture

Wewww boy! USD/TRY

Fri, 01/31/2014 - 07:50 | 4387194 buzzsaw99
buzzsaw99's picture

the boj will probably give up and stop buying stocks now. /sarc

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