While the Nikkei is not yet open for trading for Wednesday's session, the futures market is moving up off of the 8400 level.
It has obviously plummeted as it discounts the massive hit to the Japanese economy but it could be that traders are saying, "enough" for now. Of course, if the situation regarding the nuclear reactors were to worsen further, all bets are off; however, if the interprid Japanese can get those reactors under control, the Nikkei will probably commence a short covering rally with shorts booking profits under the idea that they have discounted the worse case scenario.
Were that to occur it would pull up the US equity markets and probably send money flowing back into the commodity complex as longer term, demand for many commodities is going to be on the rise due to the amounts required for reconstruction purposes. Food stocks will also have to be replenished.
Gold and silver would then rebound sharply. Stay tuned as events unfold.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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