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Japan Stocks, US Futures Surge On Japan Market Open

Submitted by Tyler Durden on 05/27/2013 20:40 -0400

Update: rumor of Price Keeping Operation in Japan. If correct, this means that the BOJ's $70 billion per month injection is no longer sufficient, that the BOJ's credibility is being actively questioned - by far the biggest stigma for any central bank anywhere - and pass-through financial entities have to artificially prop up the market by buying ETFs in order to preserve the galloping rate of increase or else face a collapse such as that seen in the past several days.

* * *

The "catalysts" in the new normal have become so hilarious that losing money in the centrally-planned market can be simply viewed as the price of admission to witness the most entertaining circus spectacle in capital "markets" history. Behold: the 8pm open of Japanese trading.

Apparently, somehow, the fact that a market has reopened is not only news, but is massively sell the Yen news, at least by Mrs. Watanabe, and since every US algo is correlated to the USDJPY, this means a surge in the E-mini. But perhaps what those sneaky algos are discounting is that tomorrow is a Tuesday. And as every dart chasing monkey with an E-trade terminal knows: nobody ever loses money on Tuesdays betting on the Stalingrad & Propaganda 500 index any more.

USDJPY: note the momentum ignition at 8 pm, driven by the "news" that Japan is now, once more, and "shockingly", open.

And where the USDJPY goes, the ES is right behind.

- advertisements -

Mon, 05/27/2013 - 20:42 | 3602333 lolmao500

Red by day's end?

Mon, 05/27/2013 - 20:45 | 3602341 CrashingDollars

Red and dead

Mon, 05/27/2013 - 20:57 | 3602355 lolmao500

Better dead than red. Problem is, we have become the reds.

Mon, 05/27/2013 - 21:19 | 3602410 CClarity

But is it still a "Tuesday" when it follows a Monday market holiday?

We could have all that "correlation" vanish. Cuz it ain't really causation. Algo humping, like that little poodle.

Mon, 05/27/2013 - 22:47 | 3602591 markmotive

Kyle Bass called it. He said Japan would be forced to QE even bigger.

http://www.planbeconomics.com/2013/05/kyle-bass-thinks-japan-will-expand...

Mon, 05/27/2013 - 22:54 | 3602614 prains

Ken Lay was CEO of a criminal enterprise called ENRON and their crimes were aided and abetted by Anderson Accounting

Mon, 05/27/2013 - 23:15 | 3602649 malikai

Just another setup closing, that's all.

The next leg down for the yen is probably on it's way now.

http://blog.quantsig.net/2013/05/28/japan/

Tue, 05/28/2013 - 04:44 | 3602932 jeff montanye

better known as arthur andersen, last major corporation convicted of a felony by the u.s. government? google wasn't much help.

Mon, 05/27/2013 - 23:34 | 3602684 Cast Iron Skillet

well, if better dead than red, and you're red, then ...

Tue, 05/28/2013 - 04:40 | 3602931 mrdenis

*Did you order the Code Red?*

*You're Goddamn right I did!*.......

Mon, 05/27/2013 - 20:52 | 3602359 TraderTimm

THIS is what I mean when I talk of Tyler's pattern of jumping on any/all declines as "THE ONE". I'd love him to be right, but the goddamned thing just pops right back like nothing happened.

Mon, 05/27/2013 - 20:54 | 3602365 taraxias

Yeah, but remember , ZH is not an investment advice financial site.

/////sarc

Whatever happened to this once great site?

Mon, 05/27/2013 - 21:30 | 3602435 Uber Vandal

You had amnesia and kept posting the same thing with different wording??

http://www.zerohedge.com/news/2013-04-27/italys-enrico-letta-announces-n...

Mon, 05/27/2013 - 22:14 | 3602515 forwardho

And so it seems... the biter is bitten.

Great recall by the way +100

Mon, 05/27/2013 - 23:21 | 3602661 BigInJapan

@taraxis

The liberals have taken root.

Mon, 05/27/2013 - 21:41 | 3602458 JeffB

FWIW I didn't get any "This is THE ONE" message out of this article.

Just pointing out yet another example of the absurdity of "the markets".

Mon, 05/27/2013 - 22:03 | 3602495 taraxias

You are right, not this article, just the 1,000 articles that preceded it following every time we see a 0.1 % down move in the markets.

The Tylers should stick to coomenting on the big picture because constantly trying to predict the "big down move" has caused people on here to lose money.............and I don't give a fuck that they claim they don't provide investment advice nor that the faithful on here claim they don't trade what they read on ZH.

I am a faithful by the way, just not when it comes to trading. I've learned my lesson the hard way.

Tue, 05/28/2013 - 02:58 | 3602858 Likstane

Tyler "caused" someone to lose money? That guy is one powerful mother.

Tue, 05/28/2013 - 01:36 | 3602828 lakecity55

"markets" or "marxists?"

Mon, 05/27/2013 - 21:29 | 3602437 Gringo Viejo

Even as free market advocates become increasingly disheartened by the size, scope and more frequent interventions by governments, it's apparant that they are weakening and gradually losing control of events.

Mon, 05/27/2013 - 22:45 | 3602581 Gidas19

Red, green who gives a fck,... all i want to see is that damn deer in the dark with the eyes gloving... swan time bitchezzz...

Mon, 05/27/2013 - 22:47 | 3602589 Gidas19

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2...

Mon, 05/27/2013 - 20:46 | 3602336 buzzsaw99

You see the signs, but you can't read

You're runnin' at a different speed

You heart beats, in double time

Another e-mini and you'll be fine,

A one track mind

You can't be saved

Oblivion is all you crave

If there's some left for you

You don't mind if you do

Ohh oohh

You like to think that you're immune to the stuff

It's closer to the truth to say you can't get enough

You know you're gonna have to face it

You're addicted to debt

http://www.youtube.com/watch?v=XcATvu5f9vE

Mon, 05/27/2013 - 20:44 | 3602337 CrashingDollars

Moar!. . . ?

Mon, 05/27/2013 - 20:44 | 3602338 h0oS

Meh, its Tuesday no surprises, move along.

Mon, 05/27/2013 - 21:12 | 3602405 max2205

Turnaround Tuesday.

Mon, 05/27/2013 - 20:44 | 3602339 CDNX fan

The second Tyler turns bullish, the move will be over.

Mon, 05/27/2013 - 20:48 | 3602351 stocktivity

Until Benny stops printing, It's all Bullshit! The Tylers missed one of the biggest bull markets in history.

Mon, 05/27/2013 - 20:57 | 3602366 buzzsaw99

So lock up your daughter
Lock up your wife
Lock up your back door
And run for your life
The Bernak is back in town
So don't you mess me around...

Mon, 05/27/2013 - 20:56 | 3602367 noless

Excuse me sir; but like you, I'm trying to find my way out, could you kindly point me towards the nearest exit? Oh, there's just that one over there? And the door swings inwards you say? well what a bother. It's getting a bit smoky don't you think? More than just those candles can account for..

Mon, 05/27/2013 - 21:01 | 3602382 buzzsaw99

http://www.youtube.com/watch?v=tGH0X3teNpc

Mon, 05/27/2013 - 21:22 | 3602425 noless

although im not dissapointed i was hoping for either:

http://www.youtube.com/watch?v=pR30knJs4Xk

http://www.youtube.com/watch?v=vgSn0SbQJQI

good either way though

Mon, 05/27/2013 - 21:07 | 3602394 surf0766

A bull market usually isn't defined by a central banking printing several trillion dollars to prop up shitty economies.

Many assholes said the same thing in Feb 2000 only to watch the Microsoft antitrust lawsuit be announce and less than 7 days later the bottom fell out.

Mon, 05/27/2013 - 21:51 | 3602468 JeffB

Didn't ride the housing bubble all the way to the top either. How dumb was that.

Mon, 05/27/2013 - 20:45 | 3602342 Divine Wind

"the fact that a market has reopened is not only news"

LOL. Too funny.

Mon, 05/27/2013 - 20:46 | 3602345 thismarketisrigged

the futures are up because tomorrow is tuesday.

they need to spike futures so high, so in case of some horrible news, even a drop would still mean the market stays green, be it minimal even.

i still think japan finishes red tonight, but should not effect the u.s ponzi scheme.

i said it last week, since we are 19 for 19 on tuesdays, its gotten to the point where they are going to try to keep the market green every single tuesday now on so they can say they were perfect on the year.

Mon, 05/27/2013 - 21:06 | 3602390 noless

Look, it's a marks game, they drop in variables so you think you can beat the odds, once there are enough suckers they pull the rug, who knows, maybe tomorrow they keep it going, maybe not, but all streaks come to an end, better to at least collect some winnings instead of double down on a trend, but whatever, as always Ill be wrong, margin to the hilt and double(or moar!) your money, I'm sure the stragedy will never fail.

if you've been playing the odds and are on top, with some to lose, then drop it on the table, but don't bet your kids future on it. Cause then you'r just desperate, and daddy needs a new pair of shoes.

Mon, 05/27/2013 - 23:26 | 3602673 BigInJapan

@thismarketisrigged

The "media"'s tone over here is seldom contradicted, and they sound overly cautious today.

My money is on a close in the red - though a last minute ramp to save face wouldn't surprise.

Mon, 05/27/2013 - 20:46 | 3602347 Stuart

Behold the power of central bank buying and all that printed money.

Mon, 05/27/2013 - 20:47 | 3602348 sleepyguy007

the chart for gold since 8pm is basically the opposite. i love HFT bots

Mon, 05/27/2013 - 20:47 | 3602350 eigenvalue

And despite today's deadcat rebound, gold and silver have resumed their way to ZERO!

Mon, 05/27/2013 - 20:50 | 3602354 Bay of Pigs

You need to think a lot more and talk far less...

Mon, 05/27/2013 - 21:40 | 3602456 noless

his trolling is subpar. that is certain.

i sense that s/he got caught up in a mini mania and got burned, where his understanding was altered by visceral hatred from his previous standing of implicit trust in his own mental prowess and ability to discern reality(place adequate trust).

could be wrong, but don't let your emotions(sense of self, right and righteousness) get the better of you, that's all im seeing. because of the hard reversal in opinion.

but yeah, half assed troll falls off bench...

Mon, 05/27/2013 - 20:49 | 3602353 Rimon

There doesn't have to be a catalyst for a market to move.. Just the ebbs and flows of supply/demand.. just like there wasn't a catalyst for nikkei futures to get creamed in the European session today.. Lack of selling pressure alone is enough to lift the market

Mon, 05/27/2013 - 21:59 | 3602487 disabledvet

more like "whispering death." no selling pressure is code for "Central Bank doing the buying for me." works until it doesn't...and when it doesn't "your credibility as a Central Bank is then shattered." we know for a fact that the Japanese Central Bank has been buying Japanese equities for some time now. this isn't about the Nikkei anymore...but JGB's and the Yen. move along....

Mon, 05/27/2013 - 20:51 | 3602358 PoliticalRefuge...

Looks like it's cooling off a bit in the first hour, PM's take the usual kick in the nuts.

Mon, 05/27/2013 - 21:39 | 3602454 Possible Impact

Idiocracy clip: http://www.youtube.com/watch?v=r_4jrMwvZ2A

Mon, 05/27/2013 - 20:52 | 3602361 WTFUD

little knowledge of markets, just enough to stay clear! can anyone tell me why on say asx we can have .25% increase on 60 million trades and say .75% increase in nikkei on 60 thousand traded shares? sorry if dumb question.

Mon, 05/27/2013 - 21:00 | 3602378 Rimon

That's because opening offers don't have to be anywhere near the closing levels of the previous session

Mon, 05/27/2013 - 20:57 | 3602371 PoliticalRefuge...

now below closing.. "clear!"..

Mon, 05/27/2013 - 21:01 | 3602381 q99x2

Pent up Bernanke's a Pomo and Gold's up a buck. If that don't beat all hell.

Mon, 05/27/2013 - 21:04 | 3602389 WTFUD

thanks Rimon

Mon, 05/27/2013 - 21:08 | 3602393 MichiganMilitiaMan

This isn't even funny anymore. No way to determine the value of anything anymore: stocks, bonds, college education, a house, a job, a pension. I do know the value of my .223 has more then doubled. I guess my disclosure statement should read: Short, bullshit! Long, .223, close neighbors/friends and family.

Mon, 05/27/2013 - 21:06 | 3602395 chump666

This is the market rumor, from wires:

*Strong bounce in Nikkei, rumors of PKO (Price Keeping Operation)

Which is Japanese goverment entities (using tax payer monies) buying up Nikkei ETFs on mass, the buy-up will sit on pension funds.

Like I said, this is economic war. Over to you China.

Popcorn time

Mon, 05/27/2013 - 21:13 | 3602407 Dr. Engali

Price keeping operation sounds much better than plunge protection team. Those rascally Japanese did it again.

Mon, 05/27/2013 - 21:20 | 3602421 chump666

haha I know, it has that Japanese translation flow to it.

Mon, 05/27/2013 - 21:20 | 3602424 ekm

In Japan everything big was backup up by the gov, it's been a lont time already.

The gov is just buying NIkkei twice or three times.

No different from primary dealers selling the same batch of stocks to each other.

At this point DOW and S&P are fully owned by pension funds + primary dealers with Fed/Gov backup.

If Obama wishes, same as Abe, he can start buying S&P twice or three times at 3000 or 4500 points.

No biggie.

Tue, 05/28/2013 - 01:33 | 3602824 lakecity55

Ha, it's like TPTB are playing with a marked deck!

Tue, 05/28/2013 - 01:51 | 3602836 chindit13

No doubt you know the genesis of the term, which began in around 1993-4, and was a play on the UN Peace Keeping Operation in the Middle East. At that time, the GoJ unleashed funds from Yucho (Postal Savings) and Kampo (Postal Insurance) with the command to buy, and buy by lifting offers. It resulted in a move from Nikkei 14000 to an eventual peak of about 21000, with a secondary move in 1996 that just kissed 22000.

And then.....

It works for a time, but eventually leaves figurative death and destruction in its wake. This time it could be literal, but there are those who will make hay while the sun shines.

I believe the authorities are looking for 120 JPY/USD and 20-25K Nikkei. A rise above 25K Nikkei would bring back into the money all the losers from the first PKO, and allow the long term holders to cross them again for a realized gain, or perhaps even pare down positions. They are determined, but they are probably no better today at assessing both impact and their competence than they were in 1994, when they thought the PKO could end the Nikkei's long slide.

I do think they will get 120 Y/$, though, and it will be a mere weigh station. As that happens, owing to a combination of a weak world economy, J-Curve effects, and energy costs, Japan is going to match its budget defiit with a current account deficit.

Mon, 05/27/2013 - 21:06 | 3602397 WTFUD

sorry PR your answer wasn't easy enough for a dummy like me.

Mon, 05/27/2013 - 22:27 | 3602535 Dr Benway

The last trade determines the price. It can be for a single share. And yes, this is just as easily abused as you would imagine.

Mon, 05/27/2013 - 21:17 | 3602413 electricgorilla

If a POMO schedule is released this week wouldn't that mean that the FED would not be tapering in June

Mon, 05/27/2013 - 21:25 | 3602432 surf0766

They can never taper.

Mon, 05/27/2013 - 23:02 | 3602429 stormsailor

so you're ffin suprised that you continue to lose at a no-limit game where one of the players has an infinite amount to bet?

i think this is the "line", if in 20 minutes of sitting down at the table you don't know who the sucker is, it's because its you.

all the time and logic, all the articles and graphs and it all comes down to this. at what point will it collapse, and as far as i have read, nobody has a clue, first it was europe, then, greece, then cyprus, then corzine, then gold markets vs paper, then etc. etc. etc. etc...................

i know, lets all think about what came first, the chicken or the ffin egg. or perhaps how many angels can dance on the head of a pin........

maybe we could go biblical..........no man will know the day nor the hour he shall commeth, but it will be as a thief in the night, maybe thats why we infinitly discuss the biggest thieves as if by knowing them we can hypothicate the infintesimal point of singularity when it will all fall down, when the guy at the table of no-limit can no longer buy every hand, and there is no answer because it is infinite.

is it a particle, or a wave? or is it relative to how you view it.

you could ponder all of this, or maybe just shut the ff up and go long on tuesday,

storm, out

Mon, 05/27/2013 - 21:56 | 3602477 firstdivision