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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fonzannoon's picture

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

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.

fonzannoon's picture

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

Dr. Engali's picture

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

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.


flacon's picture

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



philipat's picture

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

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?

fonzannoon's picture

SSSSHHHHH quiet everyone

does everyone have their Nikkei 13k hats on? 

hobopants's picture

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

fonzannoon's picture

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

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

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!

zyby's picture

PPT not working overtime tonight.

philipat's picture

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

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

Grande Tetons's picture

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

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...

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. 

DoChenRollingBearing's picture

@ fonzanoon

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


Fall gal?

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.

Squid-puppets a-go-go's picture

she uses QE brand self raising flour.

philipat's picture

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

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.

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.

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.

AreaMan's picture

Get to work Mr. General Odierno.

VD's picture

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

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!

fonzannoon's picture

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


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.

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!?

TruthInSunshine's picture

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

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?

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

bigrooster's picture

Down 600 now.  Is it time to worry yet?

Glock under the pillow tonight.

CrashisOptimistic's picture

Are you going to load it?

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

BringOnTheAsteroid's picture

A real man sleeps with his pillow under his Glock.

Pheonyte's picture

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

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. 

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.

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.