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EURJPY Dominates As Europe's Stocks Flatline
A 'successful' Spanish auction and Draghi's reassuring anti-currency war chatter had little to no effect on Europe's equity markets but FX and bond markets moved quite significantly. A mix of small gains (CAC, DAX) and small losses (Italy, Switzerland) in stocks but Italian and Spanish bond spreads dropped 10-15bps further (down 30bps on the week) - back well below the pre-Italian election levels and Portugal goes from strength to strength on the small ratings upgrade last night (-50bps on the week). EURUSD was the story (and EURJPY) as a lack of concern over Euro potential strength by Draghi drove it to run stops above recent highs and end the day at 1.3100 (up around 130 pips on the day). EURJPY is now back to pre-Italian election levels.
EURJPY recovered all its Italian election losses...
as European Stocks flatline for the second day...
and European bond spreads collapse back towards pre-Italian election levels (and already well beyond it for Spain and Portugal)...
Charts: Bloomberg
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nice quiet slow pm knockdown today. Looks more natural this way.
And the ES keeps getting juiced higher.
Who is buying this shit at these levels?
This is WAY beyond crazy!!!!!!!!!
they can't dump it yet because retail is still shying away. They will just keep forcing it up and hope people give up and buy. When that does not happen.....
If bankrupt retail won't buy at record highs, maybe they will 10% or so higher!
This is a blue marlin fishing expedition in a beaver pond.
Yep, the market will be supported until they complete the distribution; once sold to retail, they will turn it into a bear market.
This is BULLISH - right?
The United Nations Security Council slapped new sanctions on North Korea over its latest nuclear test hours after Pyongyang threatened to exercise its "right to pre-emptive nuclear attack" Thursday.
"Now that the U.S. is set to light a fuse for a nuclear war, the revolutionary armed forces of the DPRK will exercise the right to a pre-emptive nuclear attack to destroy the strongholds of the aggressors and to defend the supreme interests of the country," the North's foreign ministry spokesman said in a statement carried by the official KCNA news agency. "The U.S. is massively deploying armed forces for aggression, including nuclear carrier task force and strategic bombers, enough to fight a nuclear war under the smokescreen of 'annual drills'."
http://worldnews.nbcnews.com/_news/2013/03/07/17220065-un-passes-sanctio...
Do not believe the urban myth or CNBC lie, "the market is moving higher because there are more buyers than sellers".
The market could be simply moving higher today secondary to the market makers marking up the tape (walking up the tape). There are large blocks of sell orders sitting on their books for weeks and waiting to be distributed at certain price levels, so MMs are marking up the tape to these levels.
In short, you can have a major distribution (major selling) and the stock market moving higher at the same time.
BTW, look at Boeing, the stock is under distribution today.
Can't wait until the German election.
eh, that Social Democrat's Chancellor Candidate is so busy shooting himself in his legs that it might be smooth sailing for Merkel
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I'm confused about this EURJPY thing, I don't follow it much: is it not more about Japan printing than anything else?
Changes in EUR.JPY is basically the same as the sum of the changes of USD.JPY and EUR.USD. So if USD.JPY is up 1% and EUR.USD is up 1%, then EURJPY is up 2%.
If you look at all the noise on the chart the delta is less than 3%. I suppose if you leverage to buggery you could have made a profit with 20/20 hindsight (or read Fart to Market's posts)
You mean that hypocritical festering pr**k Steenbrick? But he was photographed playing chess with Helmet Schidt! (who said 5% inflation is better than 5% unemployment and managed to produce both)
Corzine must really be pissed. Everybody is copying his strategy with better timing. Since Drghi has your back, borrow in yen and buy southern European bonds. You get the margin plus stronger Euro...win/win. Why would anyone buy a business when making money is so easy?
USD/JPY has broken above its previous rally high as well. It seems nothing can stop that heading up to the 100 mark.
Borrow yen and buy dollars to puchase SPY
As the markets' rally from the November 16 lows seem to be largely funded through yen selling on the back of abenomics (and players seem to have had such a good timing turning on their JPY weakness following models!), it's pretty cool that the Tokyo High Court ruled the election was unconstitutional.
http://ajw.asahi.com/article/behind_news/politics/AJ201303060070
But it's good, the result stays valid.
Funny how the entire stock market has flatlined since it's rollover day in ES futures. They should be able to get back to business tomorrow.
Interesting action in EURJPY
http://blog.quantsig.net/2013/03/07/eurjpy-2/
Who knew jailing dissident politicians was the new fiscal policy to address what monetary policy is trying to accomplish ;-)