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SocGen: "Hedge Funds Have Already Started To Unload Nikkei"
Was this it for the index that until last night was up a pennystock-esque 85% in 6 months? According to the supposedly smartest money, hedge funds, who had already started offloading NKY225 exposure, the answer is yes.
From SocGen:
Nikkei still favoured – Hedge Fund investors have backed the Nikkei since it began rallying in November 2012. Although net long Nikkei positions are already beyond their peak (chart on the left below), Hedge Funds still represent nearly one-third (32%) of total open interest, hence their impact remains relatively strong.
Nikkei time for a pause – But while Hedge Fund’s net positions are still significant, momentum has begun to falter. Indeed, in the three weeks since 23 April, Nikkei positions have stopped strengthening. With the index now matching previous highs in US dollars (chart on right), we think the Nikkei is in need of a breather.
It sure is.
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Thanks for the heads up Capt. Obvious.
old abe and ben need to get to belgium, where it must be tuesday.....
Sell off and short gold.... Brilliant fucking plan, eh fellas?
I love the smell of margin call in the morning.
Someday this war is gonna end!
Please, the struggle to survive or improve one's quality of life only ends when you die. So, get busy living or dying.
There are no fucking "markets", without the Fed, you can describe all these paper promises with a single word, "bidless".
Which is why tapering is a joke on the ignorant. They won't taper. They are going to increase QE into more asset classes. My top pick for the asset class they decide to save next is bank debt and bank equities. They may dress it up as a general equity plan. Maybe they are already doing it. But they will focus on saving their own bacon and feeding themselves plenty of paper fiatscos.
Perhaps, for a little while. However, sovereign debt must grow, this is the only ponzi that is essential to providing the "bread" in the "bread and circuses". If the bread stops, all hell breaks loose. My guess is much of the new fiat will find it's way to the bond market shortly. Interest rates cannot stay above 2.0% on the ten-year. If you are in this casino, pick your poison.
I agree. They can't stop buying the sovereign debt either. That will increase. Since they are subsiding the creation of ever more MBS garbage, that will probably have to increase too.
Krugman's online. Any statements of truth will be junked henceforth.
I'm not Phd Krugman...but i am a big proponent of truth...or at least being forthright. "Japan is now a spread product" and that's how i would look at this. In other words Ms Lagarde reports back to "the Ministry" that "Japan is phucked." Soc Gen trying to raise LIQUIDITY suddenly "opens up the spigots" to a bunch of Connecticut Yankees et al to start producing "spread wideners." a "silent battle" unfolds between massive insurance companies, banks, etc risking entire balance sheets in order to be "in on the game." they've already seen and done..."it"...once ("Greece")...but now you're talking the number 2 or 3 economy in the world. "no dice" until after Fukushima...and after said event..."it's the exact opposite of what one would have expected." this is all pure speculation of course...i am not privy to any "inside info" here. if i was i of course could test the accuracy of this conjecture. having said that it is factually true that in Connecticut there are investment teams who clear 100 million in one year. "that would be for something big."
Is there ever a fucking direct statement out of these people? "in need of a breather"? WTF, like it's going to rest and then assume climbing? Like a fucking plane with a wing that just fell off - remain calm.
Chaos has turned the corner.
I'm starting to see the big picture and it is very fucking funny!
You either laugh or cry, I guess.
"May you live in interesting times."
Lately I just use the work "fuck" a lot, but not around the kids.
Wait...hedge funds....the ones that are shorting gold at historic levels???? Poor things.......so confused......
8:30 PM smackdown underway.
kuroda != yoda
I wouldn't be short gold either. With volatile markets and losses elsewhere. I would expect a big short squeeze up in gold
Seriously, the way it is right now, anyone who can leverage, say a $10b long position on, say, monday right at the open, all in one go, would absolutely send that price skyrocketing as the shorts are squeezed out. take profit at the end, whatever, whoever fires first makes out fucking huge right now.
Abe's US fed's suggested insane printing will eventually have an effect. Inflation with decreasing consumerism is going to have a huge impact.
'Unloading' it to whom?
These people are dreaming....there's no one to sell to.
There is no "pause" in the markets. There is either hell bent for leather up or down. Not for the faint hearted. I see that the DOW isn't holding up too well. I should add to my short position.
why those whizzkids from SocGen didn't inform me in January, that HF are/were loading heavily on NIKKEI?
the reason why this doesn't feel like "a BIG DEAL" is because this is now a CURRENCY PLAY as well. so sure..."here comes gold riding your country into oblivion"...but that's nothing like what a collapsed currency will do. if that Nikkei really takes a dive (no i'm not a buyer...but you can find lots of advocates for doing just that over at SA) then forget gold...now the currency itself is at risk. THAT's the Big Play here.
Last one out turn off the lights.
On a side note will Stockholm ever NOT be on fire?