The semiconductor and auto stocks in Japan suffered significant pull-backs due to trader concerns of a softening U.S. economy. This action by traders is not on account of further reaction to North Korea's test firing of multiple missiles yesterday, but specifically due to global concerns about the future health of the U.S. economy.

The Japanese equity market, along with New York and London, is in the top three most important in the world. The Bank of Japan, at times, like the present, is the second most important central bank in the world. At the end of next week, BoJ will make what could be a crucially important decision on monetary policy.

So I say to my readers, it's all hands on deck. The equity and bond markets of the world are at an important point. I believe the Japanese equity market peaked in April (along with London) ahead of the rest, which topped out on May 10. Should BoJ next week decide to raise rates and cut back on money supply growth, the impact on global capital markets will be pronounced, i.e., negative for prices.

I will be travelling from Sunday on, so this will be an important time to watch the events in Japan on your own.