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futes 5.23.13



US futures are down following yesterday’s intra-day reversal after the FOMC minutes were released.

Nikkei is down 7.3%. Japan’s Topix index tumbled the most since the aftermath of the March 2011 tsunami and nuclear disaster. This follows a 50% rally in the Japanese market on Abenomics. Hong Kong Hang Seng Index is down 2.54%.

Major European indices are off 2-3%. EuroStoxx down 2.3%; FTSE100 off 1.9%. Deutsche Borse got whacked for 2.7%, wqhile the CAC40 is hit for 2.3%.

Josh has more details here; World market updates here.






Category: Markets

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11 Responses to “Look Out Below, Japanese Black Thursday Edition”

  1. Did I write Wednesday? I better fix that!

  2. Orange14 says:

    Let’s say that the stock market goes into hiatus for the remainder of the year in terms of price appreciation and there is no decline. How many of you will be satisfied with your YTD return (dividend income would continue obviously)? I certainly would be pleased.

  3. Petey Wheatstraw says:

    Markets around the world are down, you say?


    We have gone down the rabbit hole and things like that simply don’t happen, here!

    Buy now, or be priced out F-O-R-E-V-E-R!

    Probably an oversight.

  4. Herman Frank says:

    Don’t panic, don’t worry, don’t listen to all the buzz of the buzzards and other commission hunters. Your emotions are your worst enemy! They make you sell at the bottom and buy at the top. Plenty of articles on this blog have made reference to this. So Japan has come off its 12 years high by 7.2% (yeah, I know, the .2 is really important for the negatives amongst us), the other bourses are or will be down by 2 or 3% (Oh my God! Perhaps even 5%!). So what?! You’ve been all giddy about riding to the all-time-high of this and that stock-exchange in this or that product. Good! Hold on to that feeling!

    Now decide again, and again, and again (to quote BR) “Am I a trader or an investor??”
    Have you been drooling about certain stocks (of the future, of the masses, of the dividend stream, of the potential), but they were are above average P/E’s? Are the names of those stocks on the little pieces of paper next to your PC? Are they keyed in with nice low prices to buy in your broker program? Do you talk the talk and walk the walk as investor: “buy quality in the dips”?

    Or do you follow the masses over the cliff and sell, sell, sell?

    Take a deep breath, and think again, and go for a walk.

    • san_fran_sam says:

      “They make you sell at the bottom and buy at the top. ”

      Hey, I resemble that remark! ;)

  5. rd says:

    I wonder what the very high level of margin debt will be thinking.

  6. rd says:

    Underwater homeowners are still an astonishingly high percentage, although it has improved further:

    Hopefully, more and more of these homeowners are getting enough equity to be able to refinance to lower rates instead of being locked into 2006 mortgage rates which would help after-housing disposable income. Also, more equity means that they are more mobile and able to sell and move without writing everything off.

  7. Concerned Neighbour says:

    First, yesterday is yet more evidence that this “market” is largely driven by QE, not fundamentals.

    Second, every single down day that has been allowed thus far this year seems to have been more than made up the next day or two. This could be the first time two non-negligible down days have occurred back to back in what seems like forever. However, yet another miracle pump to the green side by the close would not be surprising. In fact, so conditioned by the ridiculousness of this “market” that I’d be surprised if it didn’t happen.

    • rd says:

      I think QE is driving some of the increase but most of it has been driven by the fundamentals to date. But it does seem like earnings per share and revenue growth has slowed dramatically, so there probably isn’t too much more upside without signiifcant economic improvement.

      There is so much margin debt out there that significant QE-based trading could trigger margin calls and start a major cascade at some point. Yesterday’s reaction to relatively sane remarks by Bernanke and the overnight Nikkei reaction to Japanese conditons is a warning shot that there is distinct instability on the fringes of the market.

      This market clearly won’t compete well with higher interest rates. The final stage of a secular bear is when it makes sure that everybody has lost money. It is getting set up to do this with the high valuations in the bond, stock, and commodity markets. The first crack appears to have been gold and silver.

  8. RW says:

    Elementary, My Dear Watanabe-san

    So to the extent that this wasn’t just markets doing their occasional panic thing, it looks like a sudden outbreak of concern about whether the Bank of Japan has really changed as much as it seems.