Whether some major fund just got another tap on the shoulder or the liquidity cracks are showing up in all asset classes is unclear but just as we saw last night around the China open, gold and Japanese stocks are taking a tumble… while JGBs are relatively calm and JPY is modestly stronger. Chinese stocks, having read the actual report from the PBOC (as opposed to US media who merely guessed that it meant the stick-save was in), are selling off – though only down around 1% for now. Why? Simply put, if the PBOC promises to selectively save banks, how do you know which ones? So sell them all first… US futures are testing down towards day-session lows but not moving as aggressivley as Japan.