Goldman Admits Defeat Following 6.16% Loss In Three Days, Closes Long Nikkei Reco
Suplise! We mocked them earlier for not closing out. Four hours later, they have done the honorable thing, and fallen on their sword. So to speak.
Stopped out of our long Nikkei September futures (NKU3) position
With the JPY trading through 93 at one point overnight, Nikkei September futures traded through our stop of 12,700. Although futures are now trading back above our stop, testament to the enormous volatility in the market there, on the basis of the Tokyo close, we were stopped out with a potential loss of 6.16 percent. Japanese markets continue to roll back gains and unwind inflation expectations, moves that we now think are excessive given the firm commitment to ease. But with the June BOJ meeting now past, it is somewhat less clear what will shift sentiment in the near term.
Translation: Goldman is now buying the Nikkei again.
As for the muppets? You know the picture.