During the Asian trading session a coordinated round of central bank intervention, designed to weaken the Japanese yen, succeeded in pushing the rate down towards the 82 level against the USD.
During Wednesday’s North American session the same ingredients were in play that produced the flash crash of May 6 last year - this time in a more slow-motion fashion, which in some respects is more ominous.
The weekly chart for the Nikkei 225 suggests that, as the tragedy in Japan unfolds further, the March 2009 lows in the proximity of 7000 could be tested.
The events in Japan over the last 72 hours reveal the fragility of systems created by human beings. Seeking out protection against "tail" risk remains significantly underpriced in Clive Corcoran's estimation.
Clive Corcoran's outlook for the S&P index remains relatively positive, but suggests that the best trading stance is to buy pullbacks and look to take quick gains.
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