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F/X Reversal

Tyler Durden's picture




 

Someone just puked up a boatload of Yen to buy pretty much every other F/X pair. And in the process the DXY getting weaker, as the EUR is 57.6% of the DXY while the Yen is just 13.6%. Nothing like buying Euros against Yen, weaken the Dollar and make stocks shoot up.

In a nutshell this is how you ramp the market: Sell YEN, Buy EUR, weaken DXY and send stocks higher. Nothing more to it.

 

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Mon, 08/31/2009 - 15:58 | 54296 ghostfaceinvestah
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Can someone do some research and tell me hwen the last time is the S&P finished on the low of the day?  Has it happened since March?

Mon, 08/31/2009 - 16:02 | 54305 Dixie Normous
Dixie Normous's picture

It has never happened, will never happen and if you think you saw it happen before, you must be carazy.

Moreover, if you ask questions or make mention of this again, you will be reported to the authorities.

Thank you.

Mon, 08/31/2009 - 16:30 | 54371 Anonymous
Anonymous's picture

I miss flag@whitehouse.gov - it's much harder rat out you capitalists.

Mon, 08/31/2009 - 21:35 | 54689 Anonymous
Anonymous's picture

Three weeks ago it was all you could do to bitch about its existence.

Mon, 08/31/2009 - 16:03 | 54306 TumblingDice
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July 2nd and the last time before that was June 22nd

Mon, 08/31/2009 - 16:11 | 54326 ghostfaceinvestah
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Thanks.  July 2nd, JHC. I knew it had been a while.

Mon, 08/31/2009 - 15:58 | 54297 Project Mayhem
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I wonder if the Yen / US equity inverse correlation will continue through the fall 09.

Mon, 08/31/2009 - 15:58 | 54298 RobotTrader
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Another Stick Save.....

Mon, 08/31/2009 - 18:36 | 54548 AGGfarm (not verified)
AGGfarm's picture

go figure

Mon, 08/31/2009 - 15:59 | 54299 credittrader
credittrader's picture

IG12 3.5bps wider - ignoring this ramp in stocks...wideners outpacing tighteners by 12-to-1 in credit land...come on!!!!

Mon, 08/31/2009 - 16:00 | 54302 TumblingDice
TumblingDice's picture

Yea and Gundanium alloy futures just went through the roof. I'm telling you this new Japanese government is up to no good.

Mon, 08/31/2009 - 16:05 | 54312 Project Mayhem
Project Mayhem's picture

hahah  I'm telling you they are building an army of those Mitsubishi Heavy Industries robotic fish

 

Mon, 08/31/2009 - 16:06 | 54315 Project Mayhem
Project Mayhem's picture

<duplicate>

Mon, 08/31/2009 - 16:05 | 54313 RobotTrader
RobotTrader's picture

This one up 53%.....

Whee!!!!

 

Mon, 08/31/2009 - 16:08 | 54323 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

This chart just gave me the equivalent of an ice cream brain freeze!

Mon, 08/31/2009 - 16:13 | 54334 Assetman
Assetman's picture

Yeah, this is Sinovac... I would have thought that speculation about the (pending) approval of Swine Flu vaccine for the Chinese market would have been met with plenty of speculative ramping sooner.

I guess I was wrong.

Mon, 08/31/2009 - 16:06 | 54318 crzyhun
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Taking a cue from the admin. here, the new party in Japan will not be a 7 Samurai movie. That $/yen trade was a cluster.

Mon, 08/31/2009 - 16:08 | 54324 RobotTrader
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WASHINGTON (AP) -- Interest rates on six-month Treasury bills fell Monday to the lowest point on records that go back more than 50 years.

The
Treasury Department on Monday auctioned $29 billion in six-month bills
at a discount rate of 0.240 percent. That's down from 0.255 percent
last week, and an all-time low since the government started issuing the
bills weekly in December 1958.

Another $30 billion in
three-month bills were auctioned at a discount rate of 0.150 percent,
down from 0.165 percent last week. That rate was the lowest since 0.135
percent on April 30.


Mon, 08/31/2009 - 16:12 | 54331 Anonymous
Anonymous's picture

BUT BUT BUT I THOUGHT WE WERE GOING TO HAVE HYPERINFLATION??? LOL.
good luck with getting even breakeven. Once oil collapses back to <50 we'll see the true global picture.

Mon, 08/31/2009 - 17:17 | 54424 Project Mayhem
Project Mayhem's picture

Oil is not as important as the Gold:Oil ratio imo.  Long term I think this ratio will break out much much higher.

http://stockcharts.com/h-sc/ui?s=$gold:$wtic

Also, Low treasury yields do not *necessarily* mean strong USDX.  If Fed continues to monetize (and engage in fraud and criminal activity), we can have low Tbond yields yet dollar crisis (50-90% gold and oil purchasing power reduction) on the currency markets.  This will come eventually.  The only question in my mind is if we get a period of paradoxical dollar strength during another wave of global forced deleveraging.

Mon, 08/31/2009 - 18:03 | 54489 Anonymous
Anonymous's picture

Very strong negative divergence MACD on that chart. That chart is going higher . How? Oil will collapse (>30%) and gold will hold its value relatively (maybe down 10% to 850). The dollar shall also be rallying back to 85 on DXY.

Mon, 08/31/2009 - 18:08 | 54494 Anonymous
Anonymous's picture

I beg your pardon , i meant POSITIVE divergence.

Mon, 08/31/2009 - 18:36 | 54549 AGGfarm (not verified)
AGGfarm's picture

charts just don't seem to matter anymore

Mon, 08/31/2009 - 16:14 | 54336 Project Mayhem
Project Mayhem's picture

Wow

Mon, 08/31/2009 - 16:11 | 54328 Anonymous
Anonymous's picture

what TD doesn't believe in coincidence???? naaah

Mon, 08/31/2009 - 16:15 | 54340 lsbumblebee
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Fortunately the Yen is not a real currency. We just use it like monopoly money to push the USD up or down whenever necessary.

Mon, 08/31/2009 - 17:01 | 54419 Anonymous
Anonymous's picture

sliciing up eyeballs
i want you to know

Mon, 08/31/2009 - 19:17 | 54597 lsbumblebee
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They go well with diced carrots.

Tue, 09/01/2009 - 03:33 | 54833 Anonymous
Anonymous's picture

Tell black francis 'hi' for me.

Mon, 08/31/2009 - 16:18 | 54345 Anonymous
Anonymous's picture

Can anyone surmise as to continuing falling interest rates vs. rising equities? What do bond buyers know that equity buyers no not...or vice versa? How long and how much can these diverge? Seems interest rates must be driven higher in mid and long term but in the short term why are people buying at these return levels?

Mon, 08/31/2009 - 17:16 | 54430 deadhead
deadhead's picture

"What do bond buyers know that equity buyers no not...or vice versa?"

There is no vice versa. Bond buyers know, equity buyers don't.

Hope this helps.

Mon, 08/31/2009 - 18:37 | 54550 AGGfarm (not verified)
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a positive correlation

Mon, 08/31/2009 - 16:31 | 54375 Anonymous
Anonymous's picture

most of that is the closing auction

Mon, 08/31/2009 - 16:39 | 54393 Anonymous
Anonymous's picture

Bridgewater hearts trading the euro yen cross

Mon, 08/31/2009 - 18:42 | 54553 Anonymous
Anonymous's picture

There was EUR/Yen buying in the afternoon, but When the euro suddenly spiked from 1.429 to 1.436 at around 10am, the yen also strengthened against the dollar at the same time, from 93 to 92.8. So its wasn't EUR/Yen buying responsible for the initial pump up in equities. Whatever and whoever did the Anti-dollar thing at 10am (when equities was near the lowest for the day), was gunning directly at the USD against both EUR and Yen. These pumpers are getting creative, but may need more muscles with each passing day........ until the momentum snowballs (downwards of course).

Tue, 09/01/2009 - 10:34 | 54954 Anonymous
Anonymous's picture

'speculative ramping'

Is Zerohedge just a site for trashing stock movements?

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