This is amazing. The first time ever The Tokyo Stock Exchange has Suspended trading in fear that the system will crash!!!! The sell off on the Nikkei was so big today that within the first few hours of trade, there was 2.5 million trades that had gone thru.
Gold has fallen below $550 level. DJIA futures looks average,FTSE does'nt look much better.
Getting the feeling tomorrow is not going to be pretty on The ASX!!!!
nizar
18th-January-2006, 05:39 PM
yeh i get the same feeling...
do u think the asx200 is at the beginning of a correction like in oct2005 or sumthing worse?
Prospector
18th-January-2006, 05:41 PM
Your post totally freaked me :eek: so did some exploring myself. It seems that the exchange closed because it had reached its maximum number of transactions (4 million) and couldnt cope with any more. Its systems were upgraded late last year and it also closed early in November for similar reasons. So while it was indirectly related to the falling indices, it wasnt because they thought the whole market was going to collapse! The same thing could have occurred if the market went totally bullish! Phew :o
jet-r
18th-January-2006, 05:53 PM
from AFR
In Tokyo, Japanese shares dived by almost 5 per cent in early Wednesday afternoon trades on concerns about a probe into internet trailblazer Livedoor and the exchange's ability to cope with heavy volumes.
The benchmark Nikkei-225 index fell by more than 740 points, or about 4.7 per cent, to around 15,060 points before stabilising somewhat at 15,292.
The Tokyo Stock Exchange then closed early for the first time ever to prevent a system crash due to heavy trading volumes.
This is quite scary. I hope it will only be a correction like we had in Oct.
johnno261
18th-January-2006, 06:08 PM
What concerns me is that The Mums and Dads Investors worldwide are going to freak at this latest news and I feel it's enough to cause panick tomorrow.
Its BIG News and everybody will hear!!
happytrader
18th-January-2006, 06:17 PM
What concerns me is that The Mums and Dads Investors worldwide are going to freak at this latest news and I feel it's enough to cause panick tomorrow.
Its BIG News and everybody will hear!!
Personally, I don't really think Mum and Dad Investors are actually proactive type traders. I reckon the majority fit into the long term buy and hold category.
Cheers
Happytrader
Smurf1976
18th-January-2006, 06:20 PM
I haven't done any proper analysis on the actual drop so this is just a general opinion but I doubt we've seen the bottom. Two possibilities IMO:
1. I've been thinking for quite some time that the Nikkei has made a major bottom in recent years. So this could be just a pullback as normally seen in any secular bull market. Worst case it retests the bottom. If it were ONLY the Nikkei falling heavily (other markets falling but not as heavily) then I would think that this is the case.
2. But if other markets and the Nikkei are all moving down sharply together then IMO we're in for a major fall rather than just a correction. It is simply not possible to sustainably (without drawing down stocks) meet world oil demand with even a partial loss of Iran's supplies. Trouble there is looking increasingly likely IMO. Combine an oil shock with the very high valuations in real estate, high consumer debts, trade imbalances of oil importing countries (most notably USA) and I can see a world recession on the way. Gloomy but that's what I see.
Suffice to say that I'm not holding any stocks at the moment. Money's in cash and forex trading. :2twocents
michael_selway
18th-January-2006, 07:07 PM
yeh i get the same feeling...
do u think the asx200 is at the beginning of a correction like in oct2005 or sumthing worse?
Probably looks like another correction on the way but could it be a bear market this time like in 2001-02 Sars period
US Dow futures are down 90+ atm! Nikkei down 400+ twice in 2 days and suspended!
Music to the überbear ear....especially when short a few S&P's :D
mit
19th-January-2006, 07:58 AM
Looks like the DOW is going to finish down only 40 overnight. It makes me think that our market is going to be flat or up today. I'd be worried if out market finished significantly down again today.
MIT
chicken
19th-January-2006, 08:27 AM
Looks like the DOW is going to finish down only 40 overnight. It makes me think that our market is going to be flat or up today. I'd be worried if out market finished significantly down again today.
MIT
The US did not react to Tokyos demise...and the future SP is up 3 points...so I cannot seethe market falling drasticly..as Tokyo is not the USA ...so the Dow held up positively...not as everyone thought.... :2twocents
bullmarket
19th-January-2006, 08:48 AM
Morning everyone.
I suppose Tokyo's early close yesterday will have got a mention in most newspapers today but here is Melbourne's Age story which puts things in perspective.
I posted last month that I thought our XJO will most likely trade within the 4300 - 4900 range for at least the next 6 months. I don't see anything to change my view atm.
My :2twocents says our market will be down again today but not by much.
