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ECB's "Frankness" Sparks EURJPY Spike Sending US Stocks To Higher All Time Highs
Aside from the fact that this morning's dismal confidence data likely inspired more Fed-inspiration, the fact of the matter is that US equities remain beholden to the ebb and flow of JPY-carry trades. This morning's surge in the latter (EURJPY) can be attributed to ECB's Nowotny, who dropped this little tape-bomb earlier:
- *ECB'S NOWOTNY SAYS 'NO REALISTIC PROSPECT' OF RATE CUT: MNI
- *NOWOTNY SAYS ECB UNLIKELY TO CUT BENCHMARK OR DEPOSIT RATE: MNI
- *NOWOTNY SAYS POLICY MAKERS 'HAVE TO LIVE WITH' STRONG EURO: MNI
Which strengthened the EUR (against the JPY) and thus - in the new normal interconnected world (disconnected from fundamentals) - US equities spike.
At some point we assume reality will dawn that carry trades can't carry us all the way to inifinity but for now, that seems to be the case at the margin - and the margin is all that matters...
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Looking at that make you think a nose bleed is around the corner.
Don't worry; keep levering up and buying stocks, Bernanke will bail you out!
Bonds are getting bought as well. Dollars coming home to roost?
Like Pavlov’s dogs -- as the liquidity music is playing -- you've got to get up and dance!
Happy days are here again...la la la laaa la la la... happy days are here again....
Precisely, from my post below; "Markets" will all go to the moon as all fiat dies. It's easy to "solve" any liquidity problems when you can create infintie fiat with the click of a button, but there will be no escaping the coming calorie shortage. Remember, in order to actually do any real work, you need energy (calories). But I digress, could I interest you in a financial "product" of mass destruction?"
I remain long black markets and sharecropping.
Gold down. Took a nose dive 4 am EST, Again.
Called the CFTC. No answer. Just press 1 for Mandarin.
Just sold short 3XES, @ 1761 basis Dec. The S&P500 contract. Be interesting to see what happens.
Liquidity Driven Bubble Booyah!
BTFATH bitchez!
this bull is unstoppable, i need MDB to tell me what stocks i should buy right now. I think im going to take a 2nd on my house and Leverage. theres no way you can lose.
You can get a second mortgage? What are you, one of those rich people with secret banking contacts so you can get approved for a loan? ;)
The stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.
http://www.marketoracle.co.uk/Article40231.html
Almost, but you still think "deflation" is real, it isn't. No society/currency has ever collapsed/died because their purchasing power became too strong. "Markets" will all go to the moon as all fiat dies. It's easy to "solve" any liquidity problems when you can create infintie fiat with the click of a button, but there will be no escaping the coming calorie shortage. Remember, in order to actually do any real work, you need energy (calories). But I digress, could I interest you in a financial "product" of mass destruction?
The scooter-straining masses at WalMart don't seem to have any shortage of calories that I can see.
Oh, you mean as a unit of energy. Might be right about that. Not to worry, there's always Agenda 21, which, I hear, is moving along just swimmingly.
The euro has appreciated 43% against the YEN since July 2012. Significant trouble ahead, for the German exports, leading Europe into recovery story.
Japanese won't want German goods; Germans will buy Jap goods instead of home-made and third-party countries will switch from German goods to Japanese etc.
EUROPEAN EXPORTS MAY HURT HARDLY
WHAT DOES THIS MEAN? HURT HARDLY?
I thought they would all agree to prop 79 on the dollar index for at least a week. Looks like that is not going to be the case. They know where they want to take it already. 75 by Christmas?
I take Nowotny's comments to mean there will be a rate cut. EU's banks balance sheets are flamming piles of shit covered only by a thin veil of "stress tests", but that veil has been fading (i.e. Spain's underperforming loans). Guess we'll be in for a .25% rate cut next time around.
On the plus side, you will be able to store all your money and securities in your refrigerator, since you won't be able to find any food to put in there, and the fact that the power will only be on for a few hours a day won't matter as much by then.
glad to see someone willing to look on the bright side.
Very bad news for Spain and Germany...
WHATEVER HARDLY.