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Japan Is Re-Crisis-ing; Nikkei Plunges 300 Points From US Close; S&P's Dead-Cat-Bounce Dead

Tyler Durden's picture


US and Japanese stocks began to fall the moment the bell rang in NYC on the end of the US day-session. By the times futures closed 15mins later, the S&P had already lost 6 points and the exuberance in the Nikkei had snapped back to USDJPY reality (100 points off its highs). As the evening progressed the dead-cat-bounce died with US and Japanese stocks tumbling to day-session lows. Dow futures are down 110 from the highs; S&P futures are down 16 points from the US session highs; and Nikkei futures - not helped by the 19th month in a row of falling YoY base wages - are testing 14,050, having dropped 300 points from the highs and removed all day-session gains. Stocks are re-crisis-ing as USDJPY tests back towards 101.


US and Japanese stocks started to crumble the moment cash closed in the US...


Nikkei snapped down to USDJPY at the close and has now lost all the gains of the day....


As has the S&P 500...





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Tue, 02/04/2014 - 22:54 | 4402544 fonzannoon
fonzannoon's picture

Get to work Mr. Yellen!!!!!!

Tue, 02/04/2014 - 22:55 | 4402552 XenoFrog
XenoFrog's picture

Holy Shit Snacks

Tue, 02/04/2014 - 22:55 | 4402564 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, it looks really bad.  Asia (Japan and China), Brazil, India, Turkey, Greece & Italy & Spain & Portugal, yeesh!  And we have our own problems, still unresolved.

Tue, 02/04/2014 - 22:59 | 4402569 fonzannoon
fonzannoon's picture

Everyone hurry the fuck up and buy some facefart before this whole thing goes!

Tue, 02/04/2014 - 23:14 | 4402605 Dr. Engali
Dr. Engali's picture

One thing I know for certain. The S&P could drop to 400 and Twitter would still be above $60.

Tue, 02/04/2014 - 23:17 | 4402618 NoDebt
NoDebt's picture

Yes, but guys, you're forgetting that USD/JPY has moved like .0000000002%, which explains the entire dump in the Nikkei tonight.  Clearly, that's what's driving things.  Clearly.


Tue, 02/04/2014 - 23:20 | 4402628 flacon
flacon's picture

Here's my live SPX500 chart with USDJPY (red) and HYG credit (orange):


Tue, 02/04/2014 - 23:35 | 4402676 philipat
philipat's picture

In fainess, however, The Nikkei IS up on the day and is holding above 14K.

Wed, 02/05/2014 - 00:00 | 4402770 balanced
balanced's picture

So does all of this global market turmoil equate to a keyframe in the larger story, could this really be marking some major shift in the status quo, or will this all fade in a few weeks as the dow resumes it's usual, steady, fed induced, climb -- odds?

Wed, 02/05/2014 - 00:01 | 4402773 fonzannoon
fonzannoon's picture

SSSSHHHHH quiet everyone

does everyone have their Nikkei 13k hats on? 

Wed, 02/05/2014 - 01:31 | 4402962 hobopants
hobopants's picture

Its back up past 14200 again...but who the hell is buying this garbage? Im so confused.

Wed, 02/05/2014 - 00:08 | 4402791 Dr. Engali
Dr. Engali's picture

The answer is 42.

Wed, 02/05/2014 - 00:14 | 4402804 fonzannoon
fonzannoon's picture

alright I tried to wait up for 13k but Abe Henry just screwed us. Goodnight all.

Tue, 02/04/2014 - 23:20 | 4402624 fonzannoon
fonzannoon's picture

well if it makes you feel better Doc I have borrowed 500k from family and friends to endlessly buy that stock to get me a sammich....and I still have 2 months or whatever to go

Tue, 02/04/2014 - 23:02 | 4402563 TruthInSunshine
TruthInSunshine's picture


Krugman-san has been advising Kuroda-san & has repeatedly claimed all would be fixed soon!

Look at Krugman's track record in terms of companies/entities he's consulted with or for! He's MONEY and A BOSS!

All Yellen has to do is ramp QE to 180 billion per month to telegraph a complete lack of confidence in the ponzi-system & that there are no "markets" anymore, and that the patient is so dose tolerant that he might as well be dead.

Get to work, Mrs. Debtfire!

Tue, 02/04/2014 - 22:56 | 4402566 zyby
zyby's picture

PPT not working overtime tonight.

Tue, 02/04/2014 - 23:02 | 4402581 philipat
philipat's picture

They are but they and their associates at BIS remain focused on ensuring that Gold does not begin to reflect reality?

Tue, 02/04/2014 - 23:23 | 4402632 Squid-puppets a...
Squid-puppets a-go-go's picture

This thing aint 'the big one'. The big one will only happen when an announced increase in QE is met with a shrug and selling continues unabated or only mitigated. That will be the market reasserting itself, and determining that central planning isnt all powerful

Tue, 02/04/2014 - 23:30 | 4402649 Grande Tetons
Grande Tetons's picture

The big one will happen...out of left field...when nobody is expecting it.... The way it should be, dammit.

Tue, 02/04/2014 - 23:43 | 4402705 ThroxxOfVron
ThroxxOfVron's picture

"Get to work, Mrs. Debtfire!"


MRs. Debtfire = MegaLULZdeluxe™

Whether 'S'he be sucking or blowing, the psi just aren't high enough...

Tue, 02/04/2014 - 23:49 | 4402728 Grande Tetons
Grande Tetons's picture

I am sure ole Janet can suck the chrome off of a bumper. You can not get to a position of power so high with a mug like hers. 

Tue, 02/04/2014 - 22:59 | 4402571 DoChenRollingBearing
DoChenRollingBearing's picture

@ fonzanoon

Looks like Uncle Janet will not get us out of this one.


Fall gal?

Tue, 02/04/2014 - 23:01 | 4402580 fonzannoon
fonzannoon's picture

Dochen grandma uncle Janet is busy baking some cookies. Oatmeal rasin. You can't rush great cookies. The wait just makes you enjoy them more. I just hope we don't start eating each other alive before they are done.

Tue, 02/04/2014 - 23:17 | 4402614 Squid-puppets a...
Squid-puppets a-go-go's picture

she uses QE brand self raising flour.

Tue, 02/04/2014 - 23:45 | 4402720 philipat
philipat's picture

As far as I can understand from the lack of policy rationality, they must be Hash Brownies?

Wed, 02/05/2014 - 01:16 | 4402651 philipat
philipat's picture

"Fall gal?"

Nah, she's also part of the Aschkenaz Club so she won't be thrown under a bus. This was orchestrated to allow Bernank to say "It was OK when I left" and for Yellen to say "It's not my problem, I just took over". I think they mis-timed it slightly with the Ponzi falling apart a little sooner than they had expected?

The fall back position will be that "We could not have forseen that Europe and the EM"S would be so weak", when in reality, the EM problems are merely symptoms of "The American crisis". There is only one answer to too much debt and too much leverage. And it is not more debt...

The only good thing about all this in both The US and Japan is that Krugman and the pseudo-Keynsians, finally, will be totally and indisputably discredited.

Tue, 02/04/2014 - 23:02 | 4402578 The Dunce
The Dunce's picture

Japan's toast.  Deflation deflation deflation.  America is toast.  Deflation deflation deflation.  Deflation is the word of the day.  Learn it.  Love it.

Tue, 02/04/2014 - 23:43 | 4402700 philipat
philipat's picture

And as a simple and humble man, for the life of me, I can't really see the problem with falling prices? They pay zero interest on hard-earned savings, so lower prices would be a welcome event.

The view of the Elite is, of course, somewhat different because inflation means more debt and more leverage.

Tue, 02/04/2014 - 23:07 | 4402591 AreaMan
AreaMan's picture

Get to work Mr. General Odierno.

Tue, 02/04/2014 - 22:54 | 4402545 VD
VD's picture

lookin good....lot more to go to recouple wit reality....

Tue, 02/04/2014 - 22:53 | 4402546 THX 1178
THX 1178's picture

Ho Lee Fuk


Tue, 02/04/2014 - 23:20 | 4402625 DumpsterFire
DumpsterFire's picture

Sum Ting Wong

Tue, 02/04/2014 - 23:26 | 4402641 Everyman
Everyman's picture

Wei Tu Lo

Tue, 02/04/2014 - 22:56 | 4402553 DoChenRollingBearing
DoChenRollingBearing's picture

Ahh, here we go again.  This whole thing is taking so long to unwind.  Time, however, is probably NOT your friend.  Prepare!

Tue, 02/04/2014 - 22:56 | 4402556 fonzannoon
fonzannoon's picture

This whole move just reeks of central planners having some fun.

Tue, 02/04/2014 - 22:56 | 4402559 Carpenter1
Carpenter1's picture

Just look at a 6 month chart of any US market, painfully obvuious where things are headed. Don't even need technical skills, just a brain. This will be no correction folks, we're going for a long ride.

Tue, 02/04/2014 - 23:00 | 4402572 XenoFrog
XenoFrog's picture

But the business channel talking heads said that I should liquidate my physical silver and put it all into equities! How could they be wrong!?

Tue, 02/04/2014 - 23:05 | 4402583 TruthInSunshine
TruthInSunshine's picture

Sell anything of actual, inherent value and go long Zynga,, Twatter, PCLN, AMZN & FACEFUK with the proceeds!

Tue, 02/04/2014 - 23:33 | 4402673 highly debtful
highly debtful's picture

I was just going to follow your advice and put my Yanmar 1401 D up for sale on the internet, when my wife suddenly remarked that the ROI on the Yanmar are potatoes, while the ROI on the stuff you advised are just small bits of paper with ink on them. I can't eat those, you see. So I'll stick with the Yanmar and the potatoes.

No hard feelings, I hope?

Tue, 02/04/2014 - 23:58 | 4402766 SillySalesmanQu...
SillySalesmanQuestion's picture

+1 for making me LMAO!

Tue, 02/04/2014 - 23:18 | 4402616 Freedumb
Freedumb's picture

But, but, Krugman said we're just a few category 5 hurricanes, 8.0 earthquakes and tsunamis away from permanent economic success and full employment

Tue, 02/04/2014 - 23:06 | 4402585 bigrooster
bigrooster's picture

Down 600 now.  Is it time to worry yet?

Glock under the pillow tonight.

Tue, 02/04/2014 - 23:31 | 4402657 CrashisOptimistic
CrashisOptimistic's picture

Are you going to load it?

If you do, what are the odds you blow your brains out?

Wed, 02/05/2014 - 01:18 | 4402947 InjectTheVenom
InjectTheVenom's picture

is that you Piers ?!

Wed, 02/05/2014 - 00:57 | 4402898 BringOnTheAsteroid
BringOnTheAsteroid's picture

A real man sleeps with his pillow under his Glock.

Tue, 02/04/2014 - 23:05 | 4402588 Pheonyte
Pheonyte's picture

Am I wrong, or is Kyle Bass getting killed on his yen trade?

Tue, 02/04/2014 - 23:56 | 4402748 Grande Tetons
Grande Tetons's picture

You are wrong. I think he went short YEN when the USD/JPY was around 80...if not before.

If Janet does not fuck things up we should see 115 this year, IMO. 

Wed, 02/05/2014 - 01:32 | 4402963 Quantum Nucleonics
Quantum Nucleonics's picture

IIRC, Bass put his shorts on when the Yen was in the low 90's.  He was getting crushed when it dropped to 80ish, so as you say he's in the money depending on how he structured his bet.  His thesis is for a collapse in Yen, so it's possible he's still out of the money even at 100+.  Also, I don't think he was betting just on the yen, but JBG's as well, either shorting the bonds or buying CDS's.

Tue, 02/04/2014 - 23:16 | 4402594 Dr. Engali
Dr. Engali's picture

The fed is doing a fine job of letting a little market fear pick up their tapering slack. Yields are lower than when they were buying 85 bill a month. One dovish statement from Yellen and the shorts will be on the wrong end of a monster rally.

Tue, 02/04/2014 - 23:31 | 4402658 TruthInSunshine
TruthInSunshine's picture

The problem is that with record margin debt, too much tilt equals a leverage waterfall.

Wed, 02/05/2014 - 00:21 | 4402814 Muppet
Muppet's picture

I'm thinking the Fed will let equities drop here as long as, unlike last time, rates do not climb.   This time, their concern is more so about managing rates.  If rates hold, equities will be allowed to decline.   IMO.

Tue, 02/04/2014 - 23:10 | 4402599 SillySalesmanQu...
SillySalesmanQuestion's picture

I saw that dead cat as gravity was pulling him back down....

The Great Sinkhole has developed its first fissure and crack, and nothing will stand in its way as it sucks everything down to the bottom.
Hedge accordingly and stack some more bitchez!

Tue, 02/04/2014 - 23:10 | 4402600 Rathmullan
Rathmullan's picture

Wow! Whoever sold futures hard after the bell knew where usd/jpy was heading a few hour later! Back in 101.20s territory as of 10 pm East coast time. Any lower and today will most definately have been just another dead "fat cat" bounce.

Tue, 02/04/2014 - 23:15 | 4402606 TheRideNeverEnds
TheRideNeverEnds's picture

Meh, call me when the USD/JPY breaks back below 94; then it will be time to panic. 

Tue, 02/04/2014 - 23:31 | 4402664 CrashisOptimistic
CrashisOptimistic's picture

You do realize that quote would mean people have enormous faith in the Yen and think it more valuable vs the dollar than they do now?

Wed, 02/05/2014 - 00:57 | 4402899 TheRideNeverEnds
TheRideNeverEnds's picture

Or the carry traders get blown the fuck out and the ensuing unwind sends the USD/JPY cross back to 90 while the whole system melts down.

Tue, 02/04/2014 - 23:13 | 4402608 thismarketisrigged
thismarketisrigged's picture

everyone remember to buy some twitter tomm before there earnings release, i am sure they r going to have some great numbers to report, lol.



Tue, 02/04/2014 - 23:15 | 4402611 Seasmoke
Seasmoke's picture

I think we might be running out of time to prepare.

Tue, 02/04/2014 - 23:46 | 4402693 Grande Tetons
Grande Tetons's picture

Do not forget the MyRA. You have time. 

The MyRA is a gift/message to the non retarded segment of the population. The same sort of gift that QE was. 

Wed, 02/05/2014 - 01:56 | 4402992 12ToothAssassin
12ToothAssassin's picture

Prepare? Didnt you watch the open to superbowl halftime? Your cue was in the first 60 seconds when the kids sang the wrong lyrics to 'Millionaire'

Wed, 02/05/2014 - 00:21 | 4402813 22winmag
22winmag's picture

Those 15 pound mylar bags of nitrogen-flushed California Koshihikari rice that I picked up today (along with the 3,500 rounds of .22LR ammo I scored) might just be worth their weight in gold soon.

Wed, 02/05/2014 - 02:19 | 4403009 The Wisp
The Wisp's picture

damn 22LR. i thought that was extinct.. fortunately i threw a few bricks back in the closet when you could get them for 12 bucks  :)  nice find buddy..

Tue, 02/04/2014 - 23:32 | 4402668 The Shootist
The Shootist's picture

Nikkei needs to drop 500 followed by another 350 plus pt drop in the DOW to make me happy.

Tue, 02/04/2014 - 23:33 | 4402671 thismarketisrigged
thismarketisrigged's picture

when are bankers going to start jumping, i want to watch it live

Tue, 02/04/2014 - 23:37 | 4402679 knicks3005
knicks3005's picture

Where is the drop on the nikkei? At bloomberg it says its up 52 pts!

Tue, 02/04/2014 - 23:46 | 4402717 Wait What
Wait What's picture

22:41:07, Nikkei 225 Futures: 14,001.

Tue, 02/04/2014 - 23:49 | 4402731 Droel
Droel's picture

Didn't you know? ZH can see the future!

Wed, 02/05/2014 - 01:18 | 4402920 Tall Tom
Tall Tom's picture



Tue, 02/04/2014 - 23:44 | 4402707 i_call_you_my_base
i_call_you_my_base's picture

On the lows!

Tue, 02/04/2014 - 23:44 | 4402709 Oxygen
Oxygen's picture

Do you think we are at the edge of
a big crash cause by something like
9/11? Maybe during Olympic game?
Illuminati card game show disaster
At Olympic game on 02/11
Snowden say something Will shake
The world on 02/15 ?
Massive us air drill in Savannah for
All the month of February.
More then hundreds fighter include (F-22Raptor)
The plane who is too hot to do the war yet
(Dont need it yet because to much
Do something bad is about to happening?!

Tue, 02/04/2014 - 23:53 | 4402749 Droel
Droel's picture

Russia's revenge.

Wed, 02/05/2014 - 00:54 | 4402896 WhyWait
WhyWait's picture

   "Do you think we are at the edge of a big crash caused by something like 9/11?"

Or inevitable, but deliberately triggered?

   Maybe during Olympic game?

They have multiple reasons for wanting this, no?

   Snowden say something Will shake the world on 02/15 ?

Only if the press reports it.

   Massive us air drill in Savannah for all the month of February.

Isn't that where Alex Jones' missing nukes were going?

It's good you're asking this question.

It will make a huge difference if - no how shocking the turn of events - there are millions of us ready to stand up and yell "Bullshit!"


Tue, 02/04/2014 - 23:47 | 4402726 chump666
chump666's picture

AUD selling, gold bid and Futures down.


Tue, 02/04/2014 - 23:48 | 4402734 TruthInSunshine
TruthInSunshine's picture

They need to install Iron Chef Morimoto as the new head of the BOJ...someone who is a Boss and can get 'er done!

Tue, 02/04/2014 - 23:56 | 4402760 stock trout
stock trout's picture

Ya well Morimoto has been on Iron Chef America for 10+ years and they still have to dub in English because he's too stupid, arrogant, or lazy, or all of them to learn the language. Should put him in a fuckin Coke commercial. 

Wed, 02/05/2014 - 00:02 | 4402774 ThroxxOfVron
ThroxxOfVron's picture

Fuck that domo arigato Morimoto: The Mack gets shit done.

Tue, 02/04/2014 - 23:57 | 4402761 q99x2
q99x2's picture
Nikkei 225 14,040.00 +0.86%


Wed, 02/05/2014 - 00:52 | 4402890 Zgangsta
Zgangsta's picture

Mitsubishi pays $436 million for a building that cost $40 million in 2010.

Wed, 02/05/2014 - 05:17 | 4403142 magne13
magne13's picture

Zgangsta, not quite sure themath is correct in that artice. In 2010 the building was bought for around $270m US (using a usd/yen of 86.96 at the time).  The purchase price now of 35Billion yen is equal to around $357m US (using a usd/yen of 102.01).  Now if we use constant 2010 usd/yen than the purchase price equivalent is $304m US.  Rise of 12.6%

Wed, 02/05/2014 - 01:19 | 4402934 TomGa
TomGa's picture

Someone/thing stepped in to rescue 14,000.


USDJPY down.

Artificial support.  Reality says selloff.

Wed, 02/05/2014 - 01:51 | 4402985 TheLooza
TheLooza's picture

Reality is what my portfolio value says it is tomorrow.  

Wed, 02/05/2014 - 03:15 | 4403058 wiseindian
wiseindian's picture

Nope. Not going to let it fall 14.1K+.  The article headline needs to be revised.

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