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USDJPY 102 Sends S&P To New Record High
What? Us worry? Thanks to the magic of the 102.00 USDJPY tractor beam, the S&P 500 has decided that Ukraine is fixed, the worst macro data in 6 years, and a rapidly tumbling expectation of US GDP is just enough "news" to warrant BTFATH. Thanks to an epic squeeze of the shorts, once again, stocks are at all-time highs... rinse, repeat...
Spot the Difference...
As the squeeze is on once again...
Charts: Bloomberg
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Off we gooooooo
What would happen if the carry trade flow reversed? In this era of ZIRP forever, I don't know if it's even possible.
Stock will go up, not down. If more war in Ukraine, then more money printing required for defense. If Russia dumps bonds, then more money printing required to buy up bonds. More money = more inflation = higher stock market. Simple Weimar stuff. At the end of the game, to infinity and beyond!
Do markets predict or mean something anymore ?
The link between the yen carry trade and the S&P is always presented with cause and effect reversed. The S&P doesn't rise because the yen is dropping. The yen drops, because speculators are borrowing in yen (and then selling them) to finance their bets on the S&P, to take advantage of a ridiculously low interest rate in a doomed currency.
Isn't that called a black hole?
No doubt years from now when more Americans live in homeless encampments than in houses, the stock market will be at fresh all time highs.
Should I be worried I shorted FB at 69.70?
Not yet, mid summer as the ES prints 2000 and FB trades through 140 maybe start to worry.
Wow, is there any blood left in that turnip? I guess there is.
Gravity, it appears, is non-existent in the matrix.
The Japanese government/CB is controlling virtually every market in the world. They simply won't allow USD/JPY to fall through 102. They just keep printing Yen and buying Spoos and Euro sovereign debt. When that breaks it will get ugly fast
Brilliant ! ....the Ruskies blew $50 billion down a rat hole on the Olympics and made double that trading in and out of stawks the past 2 days . Foarward Soviet !
Hilarious.
This is the same as the late 90s. A bad news "major selloff" of 1% is followed by two weeks of buy the dip rally which push the markets up 7% without the bad news actually going away.
Bad news IS good news in that it causes the market to be higher during periods of excessive monetary stimulus. It will cause the market to end in a parabolic climax after which there will be a long hangover.
The Market is being managed by Short Squeezes. Only way to get buying at the top.
And until the weak shorts are bled dry, the market will squeeze them. It's never a good idea to call tops or bottoms, but let the reversal actually take place before placing your bets based on existing momentum.
Same as it ever was.
I think that's pretty accurate. Even intraday the algos seem to start buying the second there's support broken. Counterintuitive.
God, I've figured last night Ukraine is over; if I did my homework, I could've figured it on Sunday.
and you're still at this...
All that being said, it's worth it to put some shorts on at these levels.
I just closed my usd/jpy longs. Never look a gifthorse... This rampfest is a joke.
Indeed Yen...I'm long at 98.51...since November.....stops at 99.51....
A pretty lame joke between these two jokes of supposed "money"
How long should I hold my eur/jpy long from 104?
So basically the most fundamentally 'unsound' story stocks are the ones that are experiencing the sharpest gains and have the most support.
Sounds about right in this bizarro world market.
New meaning for "green shoots": Russian soldiers
The worse things get, the higher the stock market will go until it can't. Then it will collapse in a smoldering heap.
Amazon up 2% - today
Twitter - up 2% - today...for starters....Fartbook.....
asinine....without merit...all spec.....which is a sign....that anytime.....
ka.....BOOM
experience tells me........
Come on Gents the fed ownes and manipulates the stock market with the help of GS, JPM etc.
The only thing that will change the markets is the FED's software.
Tesla up 2%, Twitter up 2%, Facebook up 2%, Netflix up 2%, Amazon up 1.5%. This is getting silly. I'm happy for the people who are making money on these stocks, but this is getting ridiculous.
Hahah, it get's me every time and I literally LOL
-The best time to buy is right at the worst time to buy
Gee, how could shorts be so dumb? Guess they're reading too much ZeroEdge.