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Japanese Stocks Surge By Most In 27 Months; JPY & JGBs Shrug

Tyler Durden's picture




 

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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Mon, 06/10/2013 - 01:52 | 3641335 Newmoney24
Newmoney24's picture

Long is thumbs up
Short is thumbs down

Mon, 06/10/2013 - 03:08 | 3641387 CrashingDollars
CrashingDollars's picture

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.

Mon, 06/10/2013 - 07:02 | 3641488 GetZeeGold
GetZeeGold's picture

 

 

Buy all you want of that crap you want.....but I should remind you those cats are freaken broke.

Mon, 06/10/2013 - 01:54 | 3641337 flyingpigg
flyingpigg's picture

Dead cat bounce Bitchez

Mon, 06/10/2013 - 01:56 | 3641339 Newmoney24
Newmoney24's picture

Bro go look on the ewj and dxy yahoo finance forums everyone is bullish, you saying they about to lose A lot of money?

Mon, 06/10/2013 - 06:21 | 3641472 Popo
Popo's picture

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.

 

Mon, 06/10/2013 - 07:01 | 3641490 GetZeeGold
GetZeeGold's picture

 

 

The Yahoo stock board chart jockeys are on smokin fire!

Mon, 06/10/2013 - 10:51 | 3642129 bluskyes
bluskyes's picture

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.

Mon, 06/10/2013 - 02:23 | 3641357 syntaxterror
syntaxterror's picture

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.

Mon, 06/10/2013 - 02:27 | 3641363 Newmoney24
Newmoney24's picture

Math degree?

Mon, 06/10/2013 - 02:37 | 3641367 syntaxterror
syntaxterror's picture

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.

Mon, 06/10/2013 - 07:09 | 3641500 malikai
malikai's picture

Helicopter fuel is expensive.

Sorry.

Mon, 06/10/2013 - 07:32 | 3641524 augustusgloop
augustusgloop's picture

long sikorsky

Mon, 06/10/2013 - 02:44 | 3641370 syntaxterror
syntaxterror's picture

Everyone move along and watch the unicorn ponies dancing thru the rainbows. Nothing else to see here.

Mon, 06/10/2013 - 02:46 | 3641376 lolmao500
lolmao500's picture

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!

Mon, 06/10/2013 - 03:10 | 3641389 Peter Pan
Peter Pan's picture

Someone better send Abe a bunch of tulips. It might just remind him of how these experiments end.

Mon, 06/10/2013 - 05:39 | 3641445 RabidLemming
RabidLemming's picture

i see what you did there.

Mon, 06/10/2013 - 03:12 | 3641391 constantine
constantine's picture

The FED, over the weekend, probably decided to pump all sorts of liquidity into every single asset in Japan to stop the bleeding.

Mon, 06/10/2013 - 04:05 | 3641404 Frastric
Frastric's picture

Remember Lehman?

Yeah.

Mon, 06/10/2013 - 07:26 | 3641493 GetZeeGold
GetZeeGold's picture

 

 

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?

 

Mon, 06/10/2013 - 07:36 | 3641532 BeetleBailey
BeetleBailey's picture

It was Dick Lay and Kenny...the new trio at Tipsy McStaggers....

Mon, 06/10/2013 - 04:17 | 3641409 skm
Mon, 06/10/2013 - 05:38 | 3641442 RabidLemming
RabidLemming's picture

i am so confused....

Mon, 06/10/2013 - 07:35 | 3641530 GetZeeGold
GetZeeGold's picture

 

 

Well if you get it figured out.....be sure and let us know.

Mon, 06/10/2013 - 07:05 | 3641492 malikai
Mon, 06/10/2013 - 07:23 | 3641515 edb5s
edb5s's picture

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.

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