The close on the Nikkei was 519 points down. The close was 3.83 percent down. The close was 13, 015. Where shall Doomer Doug start? From December of 2012 to early May 2013, the Nikkei went from 9000 to nearly 16,000 points. This was solely based on the Bank of Japan pouring money into the economy. In the last week the Nikkei has gone from 15,600 or so, to 13,000. This is a loss of nearly 2600 points. 2600 points is getting within shooting range of a 20 percent drop. The official 20 percent drop would be around 3200 points. This is one or two more days of trading at this point. Gang, a 20 percent drop is the official definition of a MARKET CRASH. 10 percent is a market correction. 20 percent is a market crash. Assuming the Nikkei doesn’t recover, we could be looking at a global stock market crash by Friday.
Japan’s press is reporting, again with a straight face, that today’s afternoon sell off was due to investors not being satisfied with the press conference Mr. Abe held. Oh, that is rich!
Doomer Doug has wondered at what point the US markets would start to notice Japan’s Nikkei has lost nearly 20 percent of its value in the last week.
US stocks fell about one half percent in response to yesterday’s chaos in Japan. Europe actually went up for whatever reason. This mornings futures in the US show no indication anybody has looked at the Nikkei close.
Japan is going to have more bad days. One more 3 percent decline and even the media stock shills will start to notice.
Never underestimate the pump monkeys is something Doomer Doug has learned the hard way over the years. Still, unless Doomer Doug is missing something, there is no upside here.
Keep your eyes peeled. Top up on your preps. Keep your powder dry.