The Kiama Big Blowhole is a world famous and largest blowhole in the small town of Kiama, New South Wales, Australia. Kiama Blowhole is also called the ‘Big Blowhole’ and is located just a few meters beyond the coastline. Under certain rough sea conditions, the blowhole can spray water up to 82 metres (268 ft) in the air, in quantities that thoroughly drench any bystanders or visitors. There is actually a second less famous blowhole located a few minutes south of the main blowhole commonly referred to as the "Little Blowhole" by local people. It is much smaller than the ‘Big Blowhole’, but due to its narrow shape, it is actually more ‘consistent’ than the ‘Big Blowhole’, and in the right conditions can be equally spectacular.
The two blowholes are the town's major tourist attraction, drawing more than 600,000 tourists a year. Though these blowholes look spectacular, unfortunately, many people have lost their lives in and around the areas by being ignorant of the inherent dangers.
Kiama Blowhole (Main one) Entrance
Little Kiama blowhole
Why do I mention this spectacular blowhole? It is because many global stock markets have evolved into something similar like the Kiama Blowhole. These ‘stock market blowholes’ may be located in different parts of the world but the potential effect of drenching you is the same. I am not too concerned with ‘drenching’ but I am more worried about inexperienced investors who potentially can be sucked into these ‘blowholes’ and would never able to come back!
Yesterday, we have seen the global markets roiled as Japan's Nikkei plunges 8% (intra-day record), which is about 1300 points plus (intra-day session) from a peak of 15850 to 14484. There are many factors cited (by MSN) for the drastic drop, which includes a spike in the Japanese government's borrowing costs, weak Chinese manufacturing figures and the ‘Bernanke factor’.
After 20 years of ‘the good, the bad the ugly’ experiences in this cruel and corrupted financial market, I want to tell you that you can’t wait for the reasons (for the ups and downs) to be given by the MSM. By the time you know the reasons, you are already sucked into the blowhole! You must see ahead, prepare ahead and act ahead of the herd so that you won’t get drowned in the blowhole!
Today, we also see clearly how the ASX index and the bank stocks suffer a similar fate of the short term blow-off top. In less than 2 weeks, ASX 200 has lost 6.3% and big blue-chip bank like Westpac (WBC) has plunged 16.8% since hitting the top at $34.79 less than 3 weeks ago. Just for 2 days alone, WBC has lost its value drastically by another 6.2%.
ASX 200 chart
Westpac Bank chart
The blow off top that I mentioned to you this whole week is just at the beginning stage of producing the ‘drenching’ effect but the greater one ( of sucking you into the blowhole if you are not careful) is lying ahead of many investors and traders, not too far away in the future. If you want to know the date of the panic cycle (of the greater blow off), then follow me for a while, like other happy paying subscribers.