Despite Being Stop Lossed On Its "Long Nikkei" Reco, Goldman Refuses To Close Out

Tyler Durden's picture

Four days ago we timed the Nikkei short perfectly: after all we had the irrefutable top indicator - a Goldman "buy" recommendation, which hit the tape on Sunday night when the Nikkei was at 13250. Here is what Goldman said. "Nervousness over local bond market volatility, amplified by concerns about Fed tapering, has raised fears about whether QE policies can be effectively delivered. We think those fears are overdone and are recommending long positions in Nikkei September futures (NKU3) with a target of 14,500 and a stop on a close below 12,700." Here is what we said: "Now the only reason we are not all in short on the Nikkei following this plea to buy whatever NKU3 Goldman's flow is selling, is that Tom Stolper did not endorse the recommendation." Indeed, we were cautiously optimistic on the imminent collapse in the Nikkei which however surpassed our wildest expectations, plunging by 800 points in under 4 days and hitting 12400 a few hours ago where the Nikkei closed.

One would think that following this horrible trade, whose catalyst never panned out ("Our central expectations for Tuesday’s BOJ meeting are relatively modest – we expect the term period for fund-supplying operations against pooled collateral will be extended to two years"), Goldman would have the dignity to spare the muppets further losses.

Alas, no such luck.

Instead, Goldman flagrantly ignores its own stop loss, and continues keeping the muppets in what is now a losing trade, and massively losing if one applied leverage.

The overnight price action in Asia has been extremely volatile, with all major equity bourses deeply in the red. The Nikkei closed more than -6% lower (and the Topix about -5%), with the JPY trading through 93 at one point (last 94.5). These sharp moves have also meant that the Nikkei September future traded through our stop of 12,700... Stay long Nikkei September futures (NKU3), opened at 13,215 on 10 June 2013, with an initial target of 14,500 and a stop on a close below 12,700, currently at 12,400.

Translation: Goldman has quite a bit more NKU3 in inventory to sell to muppets. And muppets, clueless as always, are gladly obliging.

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SGS's picture

EWJ up. Nuff said. Goldman protecting every inch here.  Wish I had a NY fed money toner machine at my desposal.  FUCK

asteroids's picture

Sticking to a trade after it has passed a stop is either genius or madness. Take your pick.

NotApplicable's picture

Better yet, GS will lend you the money to "invest" in this "market."

I thought bear-baiting was illegal?

malikai's picture

1. Gooldman isn't 'in' this fucking trade.

2. Goldman is on the other side and as usual is making a killing.


mattdubz86's picture

They are making a killing for clients on gold shorts; its ok to stay long Nikkei when they're rolling in dough on shorting gold. what do you have to say about that ZH?

Panafrican Funktron Robot's picture

I take it from your handle that you are a dipshit fratboy; the content of your message further shows this.  "They are making a killing for clients on gold shorts".  Goldman closed their gold short reco on the 23rd of April, when gold hit $1400.

I even quoted Business Insider for you, just in case you didn't trust this humble little fringe blog.  

"its ok to stay long Nikkei"

Gold has basically gone nowhere fast since Goldman closed out their reco; meanwhile, the Nikkei reco has lost about 5% from initiation.  Why is it o.k. to "stay long Nikkei" (losing position) while also being short gold (which has had no meaningful additional gain), "dubz"?

slaughterer's picture

The USD/JPY roller-coaster is not done plunging until 93 is briefly broken.  Been saying this for a while now.  Ignore the Squid.  

imaginalis's picture

Perhaps Nick Leeson can give them some advice

88888's picture

Interesting interview, guy on bloomberg says Japan is single handidly the biggest threat .

Non Passaran's picture

Why is the link not to, then?
I'm sick of these link blogs.

Doubleguns's picture

Getting both heads cut off starting with the little one. 

darteaus's picture

Good - that means more declines to come.

BlueStreet's picture

Smells like an AJC call. 

mattdubz86's picture

so nikkei gonna be up 6% over night.

Smiddywesson's picture

Here is a man who knows how to trade.  Yes, it wouldn't be a sell off without several opportunities to catch the falling knife, and the bigger the sell off, the more violent the upswings.

bnbdnb's picture

Here comes the EU close.

fonzannoon's picture

the nikkei dropped almost 900 points and the U.S markets are ripping higher. The give a shit factor is dwindling.

NoDebt's picture

Defending 15,000 on the Dow!  It's your moral obligation.  Super-Kevin to the rescue!

fonzannoon's picture

i think we barf at the close, you?

gatorengineer's picture

we barf mid afternoon only to close ever so slightly green....

Toolshed's picture

Up 0.2% is ripping? Boy are you easily impressed. I have some very desirable apple bombs, err, bonds to sell you then.

edstar's picture

if you used leverage you need your head read

fonzannoon's picture

that means I will go to bed with it up and wake up with it down.

Downtoolong's picture

Like I said before, when it comes  to Muppets Goldman doesn't just run them over in the crosswalk. It also backs up over  them a  few times to drive their point home.

NotApplicable's picture

That way there's more juice to suck out of their carcasses.

ziggy59's picture

Maybe they need tax write offs...

disabledvet's picture

well the "short yen" trade has gotten annihilated here...everyone was jumping on board that train when last i checked. instead "it's been a huge hedge fake" as the Japanese Government has done the rational thing and "stayed the course" from the last 30 years "in hopes something improves sometime in the next 30." stands to reason given the Fukushima catastrophe. Goldmans "bad timing" has been so perfect as to be rather odd i must say. i know if i was trading against my clients i wouldn't want that because "traitoring" in such a manner requires a lot of "short term complexity." I would laugh of course if this is there one stab at honesty.

walküre's picture

America's last hurrah is what we're currently witnessing.

Governments which make it a habit to spy on its citizens and record every move, conversation or text will never ever survive long once they've been exposed and outed.

Freedom is a nasty bitch. Citizens will always strive to be free. The desire to be free will be enough motivation to fight their oppressors and die in the process.

Better die trying than forever be a slave!

NotApplicable's picture

Freedom isn't so much a fight, as it is a choice.

"What authority do you obey?"

walküre's picture

Choice? The alternative to freedom is being unfree. You think a man voluntarily choses to be unfree? A man perceives himself free until he learns he is not. Then the man teaches his kids that they're not free and eventually a generation will rise up and go against their oppressors. In this day and age where everything is happening in an instant, it will not take very long.

SheepDog-One's picture

Anyone really believe Golden Slacks LOSES time after time on all these trades? I don't, I think they're doing the opposite of what theyre saying.

medium giraffe's picture

The Squid doesn't need a stoploss, it has taxpayers.

NotApplicable's picture

Actually, you mean "dollar holders." The Bernank puts the IRS to shame.

medium giraffe's picture


Whatever they call those mugs that slave their life away in some godawful job day after day so that they can give free money to governments who then give it to their banking buddies who then piss it up against a wall in trades like this.  I'm not sure if it matters what currency it is though, I'm pretty sure it's an equal opportunity scam.

Blano's picture

That's too funny that they say stay long on a trade but stop out below x, which it is.  A bit contradictory, but then again it is the Squid.

Crash Overide's picture

The squid is hungry today.

PAWNMAN's picture

Those pricks at Goldman made so much cash on their rigged short on gold a few weeks back they can afford to lose a little. Wish these guys would've went BK with Lehman and Bear. Oh, I forgot, the Secretary of the Treasury worked for Goldman. Criminals!!!