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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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Thu, 06/13/2013 - 10:44 | Link to Comment moonman
moonman's picture

Fuck Goldman

Thu, 06/13/2013 - 10:50 | Link to Comment SGS
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

Thu, 06/13/2013 - 11:24 | Link to Comment asteroids
asteroids's picture

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

Thu, 06/13/2013 - 11:27 | Link to Comment NotApplicable
NotApplicable's picture

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

I thought bear-baiting was illegal?

Thu, 06/13/2013 - 11:35 | Link to Comment malikai
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.

Yawn.

Thu, 06/13/2013 - 12:18 | Link to Comment mattdubz86
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?

Thu, 06/13/2013 - 12:56 | Link to Comment Panafrican Funk...
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.

http://www.businessinsider.com/goldman-sachs-covers-gold-short-2013-4

http://www.zerohedge.com/news/2013-04-23/goldman-closes-gold-short

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"?

Thu, 06/13/2013 - 12:24 | Link to Comment slaughterer
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.  

Thu, 06/13/2013 - 10:45 | Link to Comment imaginalis
imaginalis's picture

Perhaps Nick Leeson can give them some advice

Thu, 06/13/2013 - 10:45 | Link to Comment 88888
88888's picture

Interesting interview, guy on bloomberg says Japan is single handidly the biggest threat . http://www.tradingvix.com/2013/06/japan-is-biggest-threat-to-financial.h...

Thu, 06/13/2013 - 11:22 | Link to Comment Non Passaran
Non Passaran's picture

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

Thu, 06/13/2013 - 10:45 | Link to Comment Doubleguns
Doubleguns's picture

Getting both heads cut off starting with the little one. 

Thu, 06/13/2013 - 10:46 | Link to Comment darteaus
darteaus's picture

Good - that means more declines to come.

Thu, 06/13/2013 - 10:47 | Link to Comment BlueStreet
BlueStreet's picture

Smells like an AJC call. 

Thu, 06/13/2013 - 10:47 | Link to Comment mattdubz86
mattdubz86's picture

so nikkei gonna be up 6% over night.

Thu, 06/13/2013 - 10:50 | Link to Comment firstdivision
firstdivision's picture

 

I'd go long on this for NKY open.  If they're still trying to unwind, they need a good pop to convince people to buy their reco.  You'll see  a good pop before it falls again.

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=0&chfdeh=0&chdet=1371153600000&chddm=1564&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY;INDEXNYSEGIS:AXTEN;NYSEARCA:GLD;NYSEARCA:GSG&cmptdms=0;0;0;0&q=NYSEARCA:USO&&fct=big&ei=j9q5UbiKLvCy0QGVRg#

Thu, 06/13/2013 - 11:20 | Link to Comment Smiddywesson
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.

Thu, 06/13/2013 - 11:52 | Link to Comment Bay of Pigs
Bay of Pigs's picture

MOAR knives!

Thu, 06/13/2013 - 10:48 | Link to Comment bnbdnb
bnbdnb's picture

Here comes the EU close.

Thu, 06/13/2013 - 10:48 | Link to Comment fonzannoon
fonzannoon's picture

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

Thu, 06/13/2013 - 10:52 | Link to Comment NoDebt
NoDebt's picture

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

Thu, 06/13/2013 - 10:55 | Link to Comment fonzannoon
fonzannoon's picture

i think we barf at the close, you?

Thu, 06/13/2013 - 11:18 | Link to Comment gatorengineer
gatorengineer's picture

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

Thu, 06/13/2013 - 11:20 | Link to Comment fonzannoon
fonzannoon's picture

if that happens i will barf

Thu, 06/13/2013 - 11:02 | Link to Comment Toolshed
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.

Thu, 06/13/2013 - 10:50 | Link to Comment edstar
edstar's picture

if you used leverage you need your head read

Thu, 06/13/2013 - 10:54 | Link to Comment Dr. Engali
Dr. Engali's picture

No worries I have it on good authority that the Nikkei will be at 18,000 by year end:

 

 

http://blogs.marketwatch.com/thetell/2013/06/13/nomura-hasnt-given-up-on-abenomics-calls-for-nikkei-18000-by-year-end/

Thu, 06/13/2013 - 10:56 | Link to Comment fonzannoon
fonzannoon's picture

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

Thu, 06/13/2013 - 10:59 | Link to Comment Dr. Engali
Dr. Engali's picture

lol 

Thu, 06/13/2013 - 10:54 | Link to Comment cloudybrain
cloudybrain's picture

buy the dips

Thu, 06/13/2013 - 11:09 | Link to Comment Dr. Engali
Dr. Engali's picture

did you say take a shit?

Thu, 06/13/2013 - 11:10 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

dollar cost averaging

Thu, 06/13/2013 - 11:13 | Link to Comment darteaus
darteaus's picture

Sell the rallies!

Thu, 06/13/2013 - 11:13 | Link to Comment darteaus
darteaus's picture

Sell the rallies!

Thu, 06/13/2013 - 10:55 | Link to Comment Downtoolong
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.

Thu, 06/13/2013 - 11:30 | Link to Comment NotApplicable
NotApplicable's picture

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

Thu, 06/13/2013 - 10:57 | Link to Comment ziggy59
ziggy59's picture

Maybe they need tax write offs...

Thu, 06/13/2013 - 11:02 | Link to Comment disabledvet
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.

Thu, 06/13/2013 - 11:03 | Link to Comment walküre
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!

Thu, 06/13/2013 - 11:32 | Link to Comment NotApplicable
NotApplicable's picture

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

"What authority do you obey?"

Thu, 06/13/2013 - 12:04 | Link to Comment walküre
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.

Thu, 06/13/2013 - 11:21 | Link to Comment SheepDog-One
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.

Thu, 06/13/2013 - 11:31 | Link to Comment medium giraffe
medium giraffe's picture

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

Thu, 06/13/2013 - 11:34 | Link to Comment NotApplicable
NotApplicable's picture

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

Thu, 06/13/2013 - 11:48 | Link to Comment medium giraffe
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.

Thu, 06/13/2013 - 11:42 | Link to Comment americanspirit
americanspirit's picture

Tora! Tora! Tora!

Thu, 06/13/2013 - 11:49 | Link to Comment Blano
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.

Thu, 06/13/2013 - 12:01 | Link to Comment Crash Overide
Crash Overide's picture

The squid is hungry today.

Thu, 06/13/2013 - 12:06 | Link to Comment PAWNMAN
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!!!

Thu, 06/13/2013 - 12:07 | Link to Comment EmmittFitzhume
EmmittFitzhume's picture

Pride goeth before the fall(?)

Thu, 06/13/2013 - 12:17 | Link to Comment thereisonlyonelaw
thereisonlyonelaw's picture

The very idea of a stop loss contradicts basic logic. If you think an asset is worth buying at 2, why in the world would you sell it just because it is now trading at 1? Only stupid people use stop losses. A short glance at japanese stocks tell me they are overpriced: very limited upside potential and very significant downside potential. I doubt they will fall much further but I can't imagine why anyone would take the risk.

Thu, 06/13/2013 - 12:41 | Link to Comment GoatHerder
GoatHerder's picture

Molesting the muppets!

Thu, 06/13/2013 - 12:49 | Link to Comment dognamedabu
dognamedabu's picture

Ok I really want to know who uses GS.. We all see those pics of baby mamas shopping at Walmart. High time we get to laugh at ruined muppets as well. 

Thu, 06/13/2013 - 14:37 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Is it still called a stop when the market is so flush with QE? 

 

Maybe it should be called a Muppet loading zone?  Muppett unloading zone?

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