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As "Expected" EURJPY 139.00 Lifts Stocks Into The Green

Tyler Durden's picture


Mission Accomplished

From 2:45 pm

Then from 3:33 pm

And sure enough, the Lift is complete as Stocks get back to green...


So opening and closing 'beta' to EURJPY is skyrocketing... in the last few minutes S&P futures added 16 points for a 50 pip rise in EURJPY... more than double the overnight highly correlated 7 points per 50 pip beta...

In other words, the entire market is now a high beta derivative of a currency pair

Thanks K-Hen, and Ben-B!


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Wed, 12/04/2013 - 16:49 | Link to Comment FieldingMellish
FieldingMellish's picture

It appears to be getting more and more difficult to relaunch equities.

Wed, 12/04/2013 - 19:36 | Link to Comment Debtonation
Debtonation's picture

I don't understand this.  Can anyone explain the arbitrage that exists to produce this correlation?

Wed, 12/04/2013 - 16:50 | Link to Comment fonzannoon
fonzannoon's picture

Everyone take a good look at this. Then tell me how the fed is going to lose the handle? The Lion is in the cage. It's over.

Wed, 12/04/2013 - 16:54 | Link to Comment pods
pods's picture

What I like to do fonz is that on my way home during the finance part of the radio news you hear what most everyone hears.  Stocks green, blah blah blah.  Bad day, profits taken off the table BUT and then they will have some moneychanging skimmer remarking about how now this dip provides some "money on the sidelines" to get in.

It will only be over if the FED has to stop printing, or enough unplug from the Matrix.  Otherwise nothing but smiles when 99% hear that blurb on the radio tell us that things are still alright, and to go further into debt.

I betcha homeless people feel better for that instant when they are begging on the streetcorner and hear that the "market" is fine.  

Same as it ever was, people WANT to be lied to.


Wed, 12/04/2013 - 17:02 | Link to Comment fonzannoon
fonzannoon's picture

My ride home usually involves 7 Cellino and Barnes commercials until that goddamn jingle is stuck in my head and I slam/change the radio station to some prank call where some daughter tells her dad she got knocked up and then the Dad loses his mind when the disc jockey guy pretends to be the guy who knocked up his daughter and everyone laughs as the dad ends the call half crying and mumbling about how he wants to kill himself. Then if I am lucky they play Katy Perry's "Roar" song 500 fuckin times.

Then I walk in my door and scour my liquor cabinet like a guy who just spent 15 years on a deserted Island. 

So that's my Wednesday.

edit - for those who have not had the pleasure.

Wed, 12/04/2013 - 17:31 | Link to Comment pods
pods's picture

I am quite familiar with that song. I heard it about 400 times emananting from my young daughter singing along from the back of the car on a return trip from up your way this past weekend.

I have heard quite enough of that song, thank you very much.



Wed, 12/04/2013 - 17:04 | Link to Comment Al Huxley
Al Huxley's picture

Bonds rolling over again, dollar looking iffy.  It's tough to keep all three moving up.  Will 3% on the 10 yr cause anybody to take notice?

Wed, 12/04/2013 - 16:53 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

what a fucking fraudulent fucking joke...

Wed, 12/04/2013 - 17:32 | Link to Comment Rainman
Rainman's picture

OT because it's too damn funny.. .. Barack's Uncle Onyango contradicts another ObamaLie at his deportation hearing.

" I never met the man "

Wed, 12/04/2013 - 16:57 | Link to Comment all-priced-in
all-priced-in's picture

Can someone give me a quick down and dirty explanation - why does EURJPY 139.00 Lifts Stocks Into The Green?



Wed, 12/04/2013 - 16:58 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

I'm gonna guess the EURUSD stuff is all about finding some way to pay for Europe to pay for Brent through the winter.

Wed, 12/04/2013 - 16:58 | Link to Comment Rocket De Stock
Rocket De Stock's picture

You people are just figuring this out now?

Man.....Forex Kong has had this nail down to science since May. 

It's got zip to do with the EUR vs JPY specifically - the pairs movement is a "bi-product" as with GBP/JPY.

It's the underlying "death of USD" at the root of it.........................obviously.

Wed, 12/04/2013 - 17:10 | Link to Comment Tyler Durden
Tyler Durden's picture

As we have been observing since 2012, it has everything to do with the EURJPY as can be seen in this chart showing Euro-Yen vs the SPX YTD>

Wed, 12/04/2013 - 18:21 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Yes, but WHY??  Would someone explain why this silly currency pair is so important?

Wed, 12/04/2013 - 17:02 | Link to Comment Rocket De Stock
Rocket De Stock's picture

Again as per BOJ launch additional stimulus in March / April....and what choice will the American's have?


QE to double.


Then triple as USD compares to toilet paper.

Wed, 12/04/2013 - 17:13 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

Cool, now that this three day correction is firmly behind us with todays solid bottom setting, bear crushing reversal we can finish out trek to the FEDs year and target of 1850.   The only real question at this point is will we print 2000 by Q1 14 or will we have to wait till Q2 for that party?


Isnt it funny people are still trying to sell them because they are "expensive" or "markets dont just go up and up"?  see: Zimbabwe stock market circa a couple years ago.


seriously, we all know this is the end, like the end end...  you have nothing to gain from being short, if (when) this thing ends America is going to zero.  Any gains will be worthless unless they are gains in ounces of physical assets in hand...  



Wed, 12/04/2013 - 17:16 | Link to Comment AngelEyes00
AngelEyes00's picture

I just went to and there was this quote:

"You’d seriously have to ask your self what on Earth would need to occur to “reinstill confidence” in the purchase of U.S bonds/debt? Not to mention the “global move” away from USD. Tapering is impossible. QE will be doubled no question, then likely tripled."

Wow, so stuck the Fed must double or triple QE?  I keep watching to see if they raise it, which would be a tell they cannot taper.  Even if they raise it a little bit, it will show they are indeed stuck with no easy way out.  I also do not think Helicopter Ben will taper before Yellen parks her giant butt onto the Fed Chair.  He probably figures he's so close to exit stage right, his golden parachute, there's no sense in tempting fate.

Wed, 12/04/2013 - 17:24 | Link to Comment Iam Yue2
Iam Yue2's picture

Flashback to 2010: Strong Yen Helps to Fuel Germany’s Export Boom;

Three years later. € has appreciated 43% against the Yen since 2012.

Prepare to hear those German exporters squealing.

Wed, 12/04/2013 - 17:36 | Link to Comment tempo
tempo's picture

My 21+ year old grandson loves Obama. He was a C student in high school with a passion for video games. Now he is a C- student in college with a passion for beer, weed and video games. He expects to stay in school on financial aid, obamacare, and food stamps for many years. He has no declared major. He never expects to have a full time job or repay the large student loans. He is now trying to get Mom and other relatives to cosign for his student loans so he can extend his lifestyle. He has the latest iphone, xbox , video games, and HD TV. He rarely attends class and sleeps till noon. He expects to move back home when his student loans are maxed out with Mom working 2 part time jobs. He has never worked a day in his life. He is a perfect example of many young men in American today who have been told they are special, entitled all their lives. BTW he is a minority.

Wed, 12/04/2013 - 17:44 | Link to Comment AngelEyes00
AngelEyes00's picture

It will be interesting to see how he fairs in a post bubble economy.  Please update us as the situation unfolds.

Wed, 12/04/2013 - 17:52 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Take him aside and give him some wisdom.

Help him out.

Wed, 12/04/2013 - 19:28 | Link to Comment SquirrelButtDan
SquirrelButtDan's picture

I know the type. I see it all the time; it's not a minority-only epidemic...just sayin'.

Wed, 12/04/2013 - 17:53 | Link to Comment The worst trader
The worst trader's picture

Fuck you kevin henry.I can't wait till this blows up

Wed, 12/04/2013 - 18:06 | Link to Comment Cryogenic
Cryogenic's picture

Will this be the last memorable Christmas and New Years?

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