Tyler Durden's picture


Yesterday's multi-year record-breaking rally in JPY stunned a few carry-traders around the world and the overnight session in Japan suggested things were not going quite according to plan. But have no fear. A perfectly hum-drum jobs report - not Goldilocks by any means in terms of its suggesting good growth (which most should want) or bad growth (which markets want) - was enough to spark an incredible 270 pip (so far) sell-off in JPY. This is a major nation's FX rate - not a penny stock, not a banana republic, not a tech IPO!!



and it seems WTI Crude is bid are being ravaged lower...


Charts: Bloomberg

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Fri, 06/07/2013 - 10:54 | 3633664 Undecided
Undecided's picture

where is the picture of the hot asian chick holding up a sign saying 98 at the boxing ring?

Fri, 06/07/2013 - 10:58 | 3633680 Divided States ...
Divided States of America's picture

One day....the japanese people will go to their supermarket and try to buy some rice and the cashier will go:

"Wait one second while I refresh the price. Arigato gozaimasu"

I agree, currencies shouldnt be moving like a yo one benefits from this, except the fuckin banks and their trading desks.

Fri, 06/07/2013 - 10:59 | 3633688 insanelysane
insanelysane's picture

LIBOR rigging has moved on to...

Fri, 06/07/2013 - 13:39 | 3634447 tsx500
tsx500's picture

so, a major sovereign nation's currency exchange rate fluctuates a few percentage points within hours....WHAT DIFFERENCE DOES IT MAKE ?!

Fri, 06/07/2013 - 11:24 | 3633768 Stuart
Stuart's picture

This is out of control, the mechanisms needs to be changed.   Exactly, this is not a penny stock.


Fri, 06/07/2013 - 11:31 | 3633794 RockyRacoon
RockyRacoon's picture

A little chart-cheating going on counting 270 bps from that lone spike down to 95 on the yen. 

But then, sensationalism sells.   Not that these moves aren't sensational; there's just no need to exacerbate the headline scare tactics.

Sat, 06/08/2013 - 20:07 | 3638061 WonderDawg
WonderDawg's picture

Interesting how the first couple of moves took out a bunch of stops in both directions before the real move was made.

Fri, 06/07/2013 - 10:57 | 3633675 fonzannoon
fonzannoon's picture

Crude and interest rates are going to rip this bitch apart.

Fri, 06/07/2013 - 11:00 | 3633691 aint no fortuna...
aint no fortunate son's picture

but doctor copper is still getting beat on

Fri, 06/07/2013 - 11:01 | 3633698 ekm
ekm's picture

That is from chinese hoarding for financing unwinding

Fri, 06/07/2013 - 11:00 | 3633692 ekm
ekm's picture

Currency swaps between even allies with China have become issue # 1.

That is equal to dollar dumping

Fri, 06/07/2013 - 11:00 | 3633693 Bearwagon
Bearwagon's picture an end this bitch is, and not short enough it's reign was!  ;-)

Fri, 06/07/2013 - 11:40 | 3633819 cnmcdee
cnmcdee's picture

How do you know that?


Fri, 06/07/2013 - 12:09 | 3633961 Its Only Rock N Roll
Its Only Rock N Roll's picture

correction ~ are ripping this bitch apart  The sail hasn't totally torn yet, but it will.

negative correlation is almost perfect between UST's and ES...JGB's and Nikkei

Fri, 06/07/2013 - 10:58 | 3633679 firstdivision
firstdivision's picture

I fail to see an abnormality going on here.

Fri, 06/07/2013 - 13:51 | 3634508 Non Passaran
Non Passaran's picture

You're abnormal

Fri, 06/07/2013 - 10:58 | 3633682 slaughterer
slaughterer's picture

I would not complain about today if I were a gold/silver bug: PMs on sale for the weekend.  

Fri, 06/07/2013 - 11:15 | 3633742 Bay of Pigs
Bay of Pigs's picture

Fuck that. I'll complain. I'm sick of hearing excuses why gold and silver get monkeyhammered on every jobs report, every friday, everytime Bernanke speaks, and every other bird brain excuse you can come up with.

Real gold and silver demand appears to mean nothing these days. Squat. Zilch. Nada. 

Fri, 06/07/2013 - 11:23 | 3633769 NotApplicable
NotApplicable's picture

Once they destroy the paper price to the maximum extent they can before the whole Crimex blows, then you'll get your long awaited force majure, and the final price discovery mechanism goes dark and PMs are no longer for sale. Meanwhile, the destroyers will settle in paper for basically pennies on the dollar.

Fri, 06/07/2013 - 11:36 | 3633806 RockyRacoon
RockyRacoon's picture

I just hope we're not still talking about an upcoming Comex crash several years from now.  They can drag this stuff out longer than I have patience for... and money.   How long have we been bemoaning JPM's silver position(s) and the inability of the CFTC to do diddly?  Nah, don't remind me.

Fri, 06/07/2013 - 11:41 | 3633824 Bay of Pigs
Bay of Pigs's picture

Rocky, I became aware of JPM's gold and silver positions and criminal activity in 1998 or 1999. I am running out of patience and time.


Fri, 06/07/2013 - 11:45 | 3633838 fonzannoon
fonzannoon's picture

I can see that BOP. Take it easy man. You are waiting for the death of the worlds reserve currency. Be prepared to pass on your stash to the next generation. This could oulast all of us, or it could end tomorrow.

That is why most people on here will go insane before it happens.

Fri, 06/07/2013 - 11:54 | 3633863 Divided States ...
Divided States of America's picture

Yeah its gonna happen....paper assets skying while physicals getting clobbered (illusion of it)....that should only be happening in Kirby's fuckin Dreamland or Pee Wee's sick Playhouse. I dont think it really matters for the next generation because this scenerio and how it plays out is being written into stone as we speak....this is their battle, not ours. Only thing our generation (I am in my 30s also) can do is help the youngones understand faster WTF is really going on to improve their chances of survival in a future that doesnt look too good.

Fri, 06/07/2013 - 11:51 | 3633868 Bay of Pigs
Bay of Pigs's picture

I'm okay fonz, just blowing off some steam. 

And I went crazy long ago.... :)

Fri, 06/07/2013 - 11:52 | 3633877 fonzannoon
fonzannoon's picture

don't watch gold. Watch the 10yr and watch crude.

That Mr. real estate speculator, is the sound of inevitabilty.

Fri, 06/07/2013 - 11:56 | 3633898 Meme Iamfurst
Meme Iamfurst's picture



Perhaps one should go back in time to when Georgie was the pres. while Jamie was busy playing bridge in Chicago and the 'banking world' was pretending to be dieing, and gave that pres. executive order a good look see.  There you will find that the banks DO NOT have to cover their short positions...unless they want to.

How quick we forget the rules that are on the books.

Fri, 06/07/2013 - 11:57 | 3633903 Meme Iamfurst
Meme Iamfurst's picture



Perhaps one should go back in time to when Georgie was the pres. while Jamie was busy playing bridge in Chicago and the 'banking world' was pretending to be dieing, and gave that pres. executive order a good look see.  There you will find that the banks DO NOT have to cover their short positions...unless they want to.

How quick we forget the rules that are on the books.

Fri, 06/07/2013 - 10:59 | 3633687 blackbishop
blackbishop's picture

Think 98 is the crucial level, if it closes below the medium term trend would be broken, manipulators fighting to keep it above.

Fri, 06/07/2013 - 10:59 | 3633689 The Master
The Master's picture

Stability, bitchez

Fri, 06/07/2013 - 11:00 | 3633690 Winston Churchill
Winston Churchill's picture

The whole system is like a giant childrens top with more ,and

mpre instability as it loses momentum.

Suddenly it will veer off and hit a wall.

Fri, 06/07/2013 - 11:01 | 3633696 slaughterer
slaughterer's picture

USD/JPY short-term: ==> 93

Fri, 06/07/2013 - 11:04 | 3633711 Divided States ...
Divided States of America's picture

slaughterer, So that means the EUR goes where short term? 1.35?

Fri, 06/07/2013 - 11:21 | 3633763 malikai
malikai's picture

Not before a bit of profit taking, if it's even going there.

Fri, 06/07/2013 - 11:01 | 3633701 Mister Ponzi
Mister Ponzi's picture

I'm not so sure about the banana republic comment...

Fri, 06/07/2013 - 11:03 | 3633706 Tipo anónimo
Tipo anónimo's picture

Exactly. Do you have to be tropical to join the Banana Republic club?

Fri, 06/07/2013 - 11:03 | 3633708 jtlien
jtlien's picture

It's GSF...

Gold Smackdown Friday.   Buy today and sell next Tuesday when its SRT, S&P Rampup Tuesday.


Fri, 06/07/2013 - 11:29 | 3633787 Bay of Pigs
Bay of Pigs's picture

My post from yesterday,

"No doubt we have a massive ramp tomorrow in stawks and gold and silver get bludgeoned again. Ice Cream Friday after all."

I should be on Fast Money...

Fri, 06/07/2013 - 11:43 | 3633809 Divided States ...
Divided States of America's picture

Yup saw that....of course I only saw this AFTER i bot some puts that expire today....I will never learn not to go against unreality or insanity or nonsensibility. the mid day ramp off the lows yesterday was definitely a telling sign that I should have known better and that there would be a two hundred point ramp on nfp day which coincidentally isnt POMO required...i would probably buy puts here if i havent done so already.

Fri, 06/07/2013 - 11:43 | 3633829 cnmcdee
cnmcdee's picture

We should track the people on this site with the most accurate track records in their comments and make a fking killing... Zerohedge to the moon!!

Fri, 06/07/2013 - 11:41 | 3633823 cnmcdee
cnmcdee's picture

Whats SRT?

Fri, 06/07/2013 - 11:04 | 3633713 max2205
max2205's picture

...NOT YET....

Fri, 06/07/2013 - 11:08 | 3633725 Dr. Engali
Dr. Engali's picture

These currency swings are incredible. There is know way companies can hedge appropriately.

Fri, 06/07/2013 - 11:11 | 3633735 fonzannoon
fonzannoon's picture

if i were in the risk department i would hedge by owning lululemon, tesla, and some macau gambling stocks. just to be on the safe side.

Fri, 06/07/2013 - 11:16 | 3633739 Downtoolong
Downtoolong's picture

That's the whole idea. Keep them off guard, keep them guessing, keep them desperate, keep them trading.

How else is Wall Street going to convince everyone how necessary they are?

Fri, 06/07/2013 - 11:33 | 3633800 NotApplicable
NotApplicable's picture

Sure they can. All they have to do is to sellout to "The Dark Side."

Fri, 06/07/2013 - 11:12 | 3633737 nomorebuyins
nomorebuyins's picture

S&P bubble looks like it's going to float sideways until 11:30.


Fri, 06/07/2013 - 11:19 | 3633752 Yen Cross
Yen Cross's picture

  There's a large tranch of news out of China today/tomorrow. I wouldn't want to be picking levels in anything today. Risk currencies are not following the irrational exuberance in the equity markets.


19:00       CNY             Chinese Exports (YoY)                 14.70%      
19:00       CNY             Chinese Trade Balance                 18.16B      
Saturday, June 8
18:30       CNY             Chinese CPI (YoY)           2.5%     2.4%      
18:30       CNY             Chinese CPI (MoM)           -0.2%     0.2%      
18:30       CNY             Chinese PPI (YoY)           -2.5%     -2.6%      
22:30       CNY             Chinese Fixed Asset Investment (YoY)           20.5%     20.6%      
22:30       CNY             Chinese Industrial Production (YoY)           9.3%     9.3%      
22:30       CNY             Chinese Retail Sales (YoY)           12.9%     12.8%    

* Times are gmt-8

Fri, 06/07/2013 - 13:15 | 3634311 Non Passaran
Non Passaran's picture

It's guaranteed to be crazy, but then again it's also guaranteed to be crazy (I mean, the opposite from normal market response) so who the hell knows. 

They're cracking down on fake stats in China, so the numbers could be bad, but is bad bad? Or is bad good (as in, we need more stimulus, so bullish)? Or is bad expected (as in, we knew they were cheating, and they're probably still cheating)? 

It's all bullshit. I made my standard purchasing decision earlier this week.

Fri, 06/07/2013 - 13:25 | 3634375 Stares straight...
Stares straight ahead's picture

YC, see my questions in the post below. Is this how u r thinking?

Fri, 06/07/2013 - 11:36 | 3633808 Heiman Van Rock...
Heiman Van Rockerchild's picture

When they have unlimited virtual currency, anything can happen

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