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Stocks Slumping & VIX Jumping On JPY-Carry Unwind
USD strength, precious metal weakness, long-bond selling, and stocks tanking - all on the back of the ultimate driver of exuberance, the JPY-carry trade's leverage. With VIX pressing higher (over 16.5%) and credit spreads widening further, it seems hedges (or simply reducing exposure) into tomorrow's FOMC is the order of the day...
JPY carry unwinds driving the ship...
As VIX is well bid into tomorrow...
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no taper, 1800 by friday
My prediction: No taper, but they will hint at an upcoming taper and we will have an orderly correction. Then the Fed will have plenty of reason to double down.
Yeah, cause the Fed is so good at orchestrating "orderly corrections"....
No taper, bitchez!
no taper, 1800 by October.
For the DOW that is.
2 inches in the waist, and an inch shorter in the hem
It's pretty bad whe 8 pts on the S&P is considered tanking.
It's all about the angle of the dangle.
I've noticed the last 2 days(at least), the market actually declining during POMO hour. Signal?
I know its been grim being a bear for last few years but we have to maintain some standards - the markets aren't tanking - the dows off 0.25%
Ohh how I'd love a 3% down day just to laugh at all the BTFD's come in when the markets down .5% and subsequently get their arses handed to them on a plate. Our time will come!
Looks like its up to Facebook to save the Santa Claus rally now. Even Twitter's slumping. Do you think they could increase FB's weighting the S&P 500? You know, give it the prominence it deserves, given its key role in the coming decades of restoring America's economy to its former glory?
how's .95 for FB to .05 for the rest? good enough?
Sounds about right.
Santa? Where did you go?
Stop wasting time people, math make any "taper" impossible.
Even if there isn't a taper the statement language will probably be hawkish. The markets are showing signs of cracking even if there's a taper. I would expect any rally to be short lived, and a better level to short from.
VXX is the biggest short in the market right now. After tomorrow, the VIX curve will normalize with the front end getting smashed lower as the need for near term protection is no more. The implied vol on VXX options will collapse tomorrow afternoon making going long the puts an even better trade.
Until that trade is demolished by reality.
But I agree; before that time arrives, that's the trade.