This has been a very interesting week for the stock market because of the volatility. We have now sunk below the 3,000 level that I have predicted, but in a manner that no one would have guessed it, even by a very long shot. Unless of course you have been living under your basement stocked up with food and water.
It might sound insensitive if not callous, but I guess those who make money from the financial markets, are trying to guess whether the nuclear reactors in Japan will or will not overheat and explode. And to a large extent, most of the funds in the country have left, and that the BOJ has stepped in to fill the vacuum, pumping in as much as 8 trillion yen.
So for those who do not care about the human aspect of the crisis, the next two days will be time for your to glue yourself to whatever news you can get. If the people on the ground can successfully avert a full scale nuclear explosion, then a sharp surge is on the cards. Otherwise, it is going to be about how well the radioactive cloud can be contained. If the people in the region think that the winds will carry too much radiation for their own good, a sharp sell off is in the cards.
My guess is as good as yours. I too will be watching the news to see how the events unfold over the weekend.