Osaka Nikkei 225 Future Falls 16% at Low, Nuclear Fears Dominate Trading

Nikkei 225 Future (source)
Yesterday, the Nikkei 225 Stock Average hit a low of 8,227 (-14.5%) before closing at 8,605 (-10.55%). In the first few hours of trading, the Nikkei 225 June Future on the Osaka Futures Exchange fell 16.2% to 7,300 (from 9,310) before recovering. Nikkei 225 on the Singapore exchange fell even further I think. Circuit breakers were triggered on that trade, according to Reuters. Watch for capitulation when volatility peaks out. Where's the NKY VIX?

Nikkei 225 Index (Bloomberg)
This morning looks like a classic flight to quality with Treasury bonds and the U.S. Dollar green and the E-mini S&P future down 2.4%. Traders are trying to price in multiple black swan events (earthquakes, tsunamis, radiation fears, an economic slowdown in Japan, Middle East and North Africa unrest, municipal and sovereign debt crises etc.). Update: King of Bahrain declares state of emergency (Telegraph).

The charts looked sick before the earthquake and tsunami hit Japan (3/14/2011, 3/11/2011 tsunami hit and 3/10/2011 pre tsunami) and Tom DeMark was right. Catalysts are sometimes evil. Hopefully Japan enters its recovering phase very soon. For real-time updates on Japan, watch NHK World in English live on this blog post with #fukushima tweets streaming in a widget.

Articles to read:

Officials told residents living within 20km of Fukushima No. 1 nuclear power plant to leave due to increased radiation levels. Those living 20km-30km from the plant were told to stay indoors. This was a graphic I snapped from NHK World.