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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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?

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.

Anonymous's picture

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

Anonymous's picture

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

TumblingDice's picture

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

ghostfaceinvestah's picture

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

Project Mayhem's picture

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

RobotTrader's picture

Another Stick Save.....

AGGfarm's picture
AGGfarm (not verified) RobotTrader Aug 31, 2009 5:36 PM

go figure

credittrader's picture

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

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.

Project Mayhem's picture

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


RobotTrader's picture

This one up 53%.....



Cindy_Dies_In_The_End's picture

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

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.

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.

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.

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.

Anonymous's picture

good luck with getting even breakeven. Once oil collapses back to <50 we'll see the true global picture.

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.


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.

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.

Anonymous's picture

I beg your pardon , i meant POSITIVE divergence.

AGGfarm's picture
AGGfarm (not verified) Aug 31, 2009 5:36 PM

charts just don't seem to matter anymore

Anonymous's picture

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

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.

Anonymous's picture

sliciing up eyeballs
i want you to know

lsbumblebee's picture

They go well with diced carrots.

Anonymous's picture

Tell black francis 'hi' for me.

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?

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.

AGGfarm's picture
AGGfarm (not verified) Aug 31, 2009 5:37 PM

a positive correlation

Anonymous's picture

most of that is the closing auction

Anonymous's picture

Bridgewater hearts trading the euro yen cross

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).

Anonymous's picture

'speculative ramping'

Is Zerohedge just a site for trashing stock movements?