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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 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

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 | Link to Comment 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 | Link to Comment Anonymous
Mon, 08/31/2009 - 21:35 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:03 | Link to Comment TumblingDice
TumblingDice's picture

July 2nd and the last time before that was June 22nd

Mon, 08/31/2009 - 16:11 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Thanks.  July 2nd, JHC. I knew it had been a while.

Mon, 08/31/2009 - 15:58 | Link to Comment Project Mayhem
Project Mayhem's picture

I wonder if the Yen / US equity inverse correlation will continue through the fall 09.

Mon, 08/31/2009 - 15:58 | Link to Comment RobotTrader
RobotTrader's picture

Another Stick Save.....

Mon, 08/31/2009 - 18:36 | Link to Comment AGGfarm (not verified)
Mon, 08/31/2009 - 15:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Project Mayhem
Project Mayhem's picture

<duplicate>

Mon, 08/31/2009 - 16:05 | Link to Comment RobotTrader
RobotTrader's picture

This one up 53%.....

Whee!!!!

 

Mon, 08/31/2009 - 16:08 | Link to Comment 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 | Link to Comment 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 | Link to Comment crzyhun
crzyhun's picture

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 | Link to Comment RobotTrader
RobotTrader's picture

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 | Link to Comment Anonymous
Mon, 08/31/2009 - 17:17 | Link to Comment 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 | Link to Comment Anonymous
Mon, 08/31/2009 - 18:08 | Link to Comment Anonymous
Mon, 08/31/2009 - 18:36 | Link to Comment AGGfarm (not verified)
Mon, 08/31/2009 - 16:14 | Link to Comment Project Mayhem
Project Mayhem's picture

Wow

Mon, 08/31/2009 - 16:11 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:15 | Link to Comment lsbumblebee
lsbumblebee's picture

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 | Link to Comment Anonymous
Mon, 08/31/2009 - 19:17 | Link to Comment lsbumblebee
lsbumblebee's picture

They go well with diced carrots.

Tue, 09/01/2009 - 03:33 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:18 | Link to Comment Anonymous
Mon, 08/31/2009 - 17:16 | Link to Comment 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 | Link to Comment AGGfarm (not verified)
Mon, 08/31/2009 - 16:31 | Link to Comment Anonymous
Mon, 08/31/2009 - 16:39 | Link to Comment Anonymous
Mon, 08/31/2009 - 18:42 | Link to Comment Anonymous
Tue, 09/01/2009 - 10:34 | Link to Comment Anonymous
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