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Japanese Stocks Surge By Most In 27 Months; JPY & JGBs Shrug
A miss for the trade balance (extending the slide into bigger and bigger deficits), positive 'revisions' to rear-view mirror data on nominal GDP, a world of carry traders looking for a better exit point (or staring at margin calls), and more PR coverage of Abe's third arrow have created the perfect short-squeeze storm in Japanese stocks. While USDJPY managed to creep back above 98 (trading in a relatively modest 100 pip range), and JGBs rapidly recovered from early negative-correlated-to-equity-based losses to trade 1-2bps lower in yield, the broad Japanese equity market - TOPIX - is up almost 5%. This is it's best day since March 2011 and second-best day since Lehman. S&P futures are up a mere 2 points, Treasury futures are unchanged, and Gold is modestly higher. So simply put, Japanese stocks are on their own tonight in a land of Abe(g)nomics as every other asset (risk-on or risk-off) sits idly by.
Oops on the trade balance...
but that doesn't matter... but notice that each time realized volatility has exploded like this, the market has continued it downward trajectory - one reason is simply the VaR shock we have discussed in depth as risk budgets (or the margin hikes we have seen) force position reduction...
These large bounces are not unprecedented in this downturn - we have seen three ~30% retracements now...
Charts: Bloomberg
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Long is thumbs up
Short is thumbs down
I'm neither long nor short. I have no stake in this manipulated market. I just want to see it fall to shambles when the glue keeping it all together wears down once the printing presses overheat and explode.
Buy all you want of that crap you want.....but I should remind you those cats are freaken broke.
Dead cat bounce Bitchez
Bro go look on the ewj and dxy yahoo finance forums everyone is bullish, you saying they about to lose A lot of money?
Well if the Yahoo! Finance forums are bullish, then how can anyone possibly argue with that? LOL
Here's the historical chart of the Nikkei going back to the 1980's.
http://www.forecast-chart.com/historical-nikkei-225.html
Now tell me you're bullish on that chart.
The Yahoo stock board chart jockeys are on smokin fire!
Those Yahoo Finance dudes have a hard job, they have to keep stroking the market to keep it 's trajectory up, all while not getting the participants too excited, resulting in a pre-mature climax.
A nation of 350 million people purportedly creates jobs that amount to 0.05% of the population and this creates an additional $132 billion in value for the Nikkei. What a joke.
Math degree?
Nikkei went up 4% and it's a $3.3 trillion market. That's over $700,000 per job "created." You can't make this bullshit up.
Helicopter fuel is expensive.
Sorry.
long sikorsky
Everyone move along and watch the unicorn ponies dancing thru the rainbows. Nothing else to see here.
Well gee, that settles it! Make Abe the new Supreme Emperor of Japan! His economic theories have proven that he is a god among men!
Someone better send Abe a bunch of tulips. It might just remind him of how these experiments end.
i see what you did there.
The FED, over the weekend, probably decided to pump all sorts of liquidity into every single asset in Japan to stop the bleeding.
Remember Lehman?
Yeah.
Was that before or after Enron? It's all starting to become a big jumble in my brain.
Was it Dick Fuld or Kenny Lay that was smokin the crack?
It was Dick Lay and Kenny...the new trio at Tipsy McStaggers....
http://www.cnbc.com/id/100798203
i am so confused....
Well if you get it figured out.....be sure and let us know.
Thanks for the 300 pips Abe!
http://blog.quantsig.net/2013/06/10/japan-continued/
It's always good for a laugh having a look at the Nikkei first thing in the morning. Really a fun way to start the day.