Japanese Markets Crash

A third explosion occurred at the No. 2 reactor of the Fukushima Dai-Ichi nuclear plant and a fire has broken out in the building housing its No. 4 reactor. Four of the complex’s six reactors have now been damaged by explosions. The result in the Japanese financial markets has been all out panic. The Nikkei plummeted 16% before trading was halted. All Japanese Indexes are currently down 10-16%. This is the steepest 2 day decline in Japan since the 1987 market crash and those losses will likely be extended.

The S&P 500 futures have also sold heavily, dipping more than 40 points. ES has found support in the lower 1250s and I expect that support to hold through the remainder of the evening session.

I continue to hold my swing short position.

I usually keep this blog strictly financial, but with the terrible situation overseas, I just want to say that my heart goes out to the people in Japan, the earthquake victims, tsunami victims and now all those that could face the threat of radiation. Sometimes the events that instigate market sell-offs cause far more pain than just the financial kind. We wish you strength, Japan, in this difficult time...