This page has been archived and commenting is disabled.
USDJPY Reacquainted With Gravity
Zero-G free fall follows. But...But... the USDJPY is going to 105-110 they said. Don't fight the Japanese Fed they said. Elsewhere, the Watanabe retreat bugle just became the Watanabe gong show. For now, GETCO and DE Shaw's USDJPY-ES correlation algos are furiosuly pretending to ignore what is going over in FX land. We wish them luck...
»
- 11487 reads
- Printer-friendly version
- Send to friend
- advertisements -
DE SHAW celebrate most excellent drop in now reverse carry pair trade with comrade Tepper crew
I hope some ZH'ers are making money on this drop in the Yen. I can never figure out how to do that trick.
Might help if you first realize that the Yen is strengthening against the USD. It's the USD that is dropping in this pairing.
Statler and Waldorf, is anybody on ZH making money off of this? I hope so. Take it from the hedge fund b-bags and make my day brighter.
I made a little with YCS but be careful with the decay factor on some of these plays. (Get in and out in a short time frame)
The fucking Yen is on more PEDs right now than Alex Rodriguez ever was.
The Yen is skyrocketing at noon EST.
Yep, I sold my YCS near the top and now waiting for the freefall to end. I lived in Japan for a couple f years. It's and interesting place. They do things at specific times of the year. They tend to adjust their currency near September, but these days who can figure anything .
gonna need moar y-axis
LOL.
You can stop gamma rays with thick walls of lead, but you can not stop gravity.
Check with all the quantum physicists. Gravity is a problem. Despite Bernanke's explanation that the earth sucks
1) The oldsters in US Ts are making money on it.
2) Don't fight the Japanese Fed, unless you bet on reality, which is that the US Fed will buy Yen and NOT allow Toyota to destroy the Administration's showcase GM.
3) For the first time since the global circle jerk started, all the CBs have stopped working together. They will not allow Japan to collapse its yen. Too much risk to other country exports.
4) Japan is in huge trouble if other countries oppose BoJ maneuvers.
Cartels can never truly work together for very long, as the incentive to merely manage others' expectations (read: cheat) is too strong in comparison to the dangers of breaking the whole scam (right up until it starts to unwind). So, they kind of work on a pendulum between these two extremes, with all actors lying the whole time.
Well said, case in point the G7 congratulating Japan on its boldness and imagination and how they all supported Japan's efforts -- whilst their own CBs were buying yen hand over fist to oppose those efforts.
Hard to make a case for this spike in the Yen being anything other than CB buying via proxy.
Just BTFD in gold.
Deflation bitch!
only if the japanese don't need to eat or use energy...
good luck with that.
Or go to college, buy insurance, wear clothes (I've seen no deflation there), drink beer, etc. etc.
I do not see price deflation anywhere. The debt charts are all parabolic. So, where the hell is this deflation? Seriously. It is like Santa Claus. I hear about it, but I never seem to see it. Except in the interest rate I get from the bank. Is that it?
wages
What are these "wages" of which you write?
The funding mechanism for Obummercare.
wow
That Kyle Bass guy was right
Check your pocket for nickels!
Looks like a PM chart. Obviously no gaming in this trade either.......
That trade is getting blasted! NIKKEISHIMA Bitchez.
Japan NI225 12,744.00 12,904.02 12,979.00 12,724.00 [-160.02 -1.24%] 15:03:1
There is a strange similarity with all these Japanese charts.
Weeeeeee!
yes, they look like the flightpath of a kamikaze pilot
I had to log in the up arrow that. That shit is funny.
That's racist!
At some point, technicals matter.
Reading your comment quickly, I read the comment as, "at some point, testicles matter". That was funny.
Nothing hurts worse than getting hammered in the technicals.
Ow, my calls!
"History shows again and again that nature shows up the follies of men..."
"Daishikyuu hinan shite kudasai."
Oh, no, there goes Tokyo.
lol
It will be interesting to see who blows up with this kind of currency volatility.
Kuntlow's king dollar is getting hammered right now.
He's too busy to care. He's at the Minneapolis airport asking the guy in the stall next to him for toilet paper.
Larry "Wide Stance" Craig will give him more than toilet paper.
Just think if you are ever in an airport bathroom and you actually do need toilet paper. That's a dilemma.
So WWIII will get started in Asia then. Boy, the syrians will be disappointed < sarc off >
So why is Yen strengthening with outright monetization? Front running inflation or FX?
both, the death of all Fiat.
Then the delicious irony is the more Abe prints the more yen gets bought? Lol. Why can I - some know nothing douche on the Internetz - gets this but our overlords cannot?
Why can I - some know nothing douche on the Internetz - gets this but our overlords cannot?
It is difficult to get a man to understand something, when his salary depends upon his not understanding it!-Upton Sinclair
I do not know where demand is coming from but there are two things to consider:
1. Repatriating foreign investments to cover losses from other assets (bonds). This may also explain the fall in the Nikkei.
2. Belief that the QE is not going to continue (partly due to bond fears) and that Abenomics was just a fad with no consequence.
It's important to remember that even at these prices, the yen is still far above where it was not that many months ago. This may simply be short term profit taking.
Get Bass on Bloomberg with some deadpan doom proclamation and Abe is ready to push the "USD/JPY astro ramper" (TM Samsung).
Don't fight the Fed's....well up until they suddenly just pass out and drop to the floor....then you can fight em I guess.
Then it's time to put the boots to them.
Luvin' my crude futures about now...
Teasuries must be purchased...
http://www.marketwatch.com/investing/bond/10_year
Must.....Buy moar.....Bawnds......
I haven't looked, but the manipulated Au price must be shooting up close to the unbreakable 1414...the Bernank is going to have put the engine in reverse for a couple hours to stick-save the USDJPY and prevent a supernova short squeeze in "the yellow metal".
Just think if the Bernanke made a definitive statement that no taper is on the table. We might see the Yen back at 80. How does it feel? Oh, how does it feel?
BANZAIIIIIIIIIIIIIIII !!
US markets doin the Vinnie Barbarino immitation....'What....who.....where....what'?
Ben's RMS Print-tanic must be trying to shift into reverse from its 25 knot, full-speed-ahead pace. Lotsa wealth changing hands right now...
Like indians trading 'bead wealth' between tribes....one will come out the winner with the best sack of beads I suppose.
or you could loose and end up with NYC
LMAO! You guys are on the roll today. Keep up the good work.
You trade this, don't you? How do you keep from losing your shirt?
I trade the right direction. I obey my t/p & s/l targets. Volatility is a good thing if you use discipline.
TORA!! TORA!! TORA!!
That devaluation from 78 to 103/$ wasn't because the JCB was printing yen, it was mostly yen printed by the banks making loans for carry trade positions deemed profitable because Abe was going to print yen. If the carry trade collapses all those positions will quickly reverse. Eurozone bonds will drop, the yen will retrace much of it's devaluation, the hallowed US stock market will drop and all those rehypothecated positions will become vulnerable. Good thing we have all those sure-fire US treasuries to backstop everything... oh yeah the Fed took most of them out of circulation. Oops. Oh well, with Obama's scandals suddenly empowering the Repubs the new debt ceiling debate <weren't we done with that?> was going to make the rating agencies unhappy with those treasuries anyway.
Other than that things are peachy keen
Toga party at Hayman right now... Bass out back shooting vermin with a 12 gauge... phone calls from Bloomberg not answered...
Im sure KB has had a perma wood for a few days now and doesnt need a spear for his favorite past time...spear fishing.
I think Kyle Bass is great to listen to. But I thought he was calling for the Yen to keep falling. He seems like one of the smartest, most genuine guys out there. He would never make it in government, especially this most transparent of administrations.
Hold on... Bass' prophecy was the yen collapsing, not strengthening.
I think he'll be right, eventually... just not yet.
I believe KB said the Yen would likely strengthen before it collapses...or that was a likely outcome. It looks like the carry trade is being unwound by those who are afraid to risk their principle in lieu of getting that rollover credit.
hey do they have a pretend parameter? how would that work? does it work based on twitter feeds or manual input? does value of 0 mean dont pretend or pretend?
Hey everyone lets pile into the euro. No news is good news. Bond yields are blowing out again, but the swaps lines are still open.
farkin retards!
Spain 10-Year [ 4.653] 4.637 4.698 4.444 0.016 0.35% 15:20:00
Italy 10-Year [ 4.329 ] 4.145 4.386 4.142 0.184 4.44% 15:19:53
USD/JPY == > 93 target.
39 would be funnier.
That's gonna hurt come winter.
The sure failure of the Japan monetary experiment will be one big "Lehman moment" repeat. Everybody will realize in glaringly obvious fashion that central banks make big mistakes.
"Everybody will realize in glaringly obvious fashion that central banks mis-allocate and mal-invest captial and resources" - fixed Yes, but will your representation (a puppet for said bank) roll the guillotines and fix this. I'm guessing no.
I'm afraid that is a DIY sort of activity
So, the USD is falling against every ccy but gold cannot break $1,405/oz to the upside????
I think the Lone Ranger shot Silver.
Luckily, Benny has rescinded the laws of gravity over here. Nowhere to go but up.
BAUMGARTNER ALL OVER FOR ME....
Maybe I look at KIA. Toyota too expensive today.