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USDJPY Breaks Key Technical Level; Drags Stocks, Bond Yields Lower
USDJPY has broken below its 200-day moving-average at 101.25 and is trading back to almost 6-month lows this morning ahead of this evening's BoJ meeting (which is largely expected now not to provide the additional QQE that everyone hoped for earlier in the exuberant year). The Nikkei is tumbling right along side it... as are US equities... and US Treasury bond yields... But, it's Tuesday!!!!!
JPY breaks the 200DMA....
and USDJPY leads stocks lower...
Stocks catch down to bonds...
Which has dragged stocks to the week's lows...
— Not Jim Cramer (@Not_Jim_Cramer) May 20, 2014
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Don't blink or else you'll miss the dip to be bought. (it would be nice if I were wrong...)
Go for it.
Looks like another turdy Tuesday.
And "smart" money said rates were going back up....
Do you know how to spell Liquidity Trap?
PS If you're looking for an example, try Japan. Same shit, decades old.
Swing MSA 100.70, I'd check there first before I'm in, pref 99.50 (that would be nice!)
OK, we all know the drill now... get ready to just BTFD.
How is Gold stuck in the mud ?????
ask the 4 guys on the phone in London.
Sorry gold is going down, perhaps way down. Nobody can print, or for that matter needs to, as soon as the market figures that out, $1000 an ounce will be here quick.
This barring war or black swan......
I agree, fwiiw. And stay on the mat for a long, long time.
Don't forget, Wall Street assholes need a lot of cash for the 3 day Hamptons weekend! buy the dip
So that's why M1 keeps rising! The Hamptons Effect.
Will be studued at Princeton under Herr Dr Professor Krugman.
With larry Summers as visiting lecturer
This will be defended with vigor (and printed money).
I'm still buying the dip in this trade. There's rumored to be large options @101.00. Yesterday there was demand going into the tokyo fix so we'll see if that holds true today.
The pain trade I see right now is the Australian dollar after the RBA minutes(no rate hikes) and PBoC,ECB, and BoJ putting any QE talk on hold temporarily. I've been long the gbp/aud since Sunday. I think the Asian emerging markets were counting on some liquidity coming in from CB easing short term.
Don't know if dollar yen volume is low enough to move.
Do know they import 5 million barrels/day of the good stuff at $109 Brent. $545 million per day leaves the country. That's $199 Billion/year.
Japan GDP 6 Trillion. 0.2 Tril / 6 Tril = 3.33% annual GDP drag.
How can they possibly overwhelm that with growth?
Ever?
(btw, that calculation above? Didn't even include the cash leaving for nat gas)
Exactly, the yen is doomed. Japan has to go back to increasing it's monetary supply just to hold down it's borrowing costs. This is a short squeeze until 100.70/50 gets broken.
It's funny how people jump on the usd/jpy short band wagon because some dipshit from a major bank says it's going to break 100.70 and move down to 96.00. I've made a good living trading the u/j and I trade it daily. The assclowns from City, BoA are talking their books and are worse than a drunk teenager at making good/rational calls.
Hmmm, equities falling on dollar weakness...
surreal...
"Relative to yen" no less.
Which is the 3:30 ramp up again? The time or the yield on the Thirty year?
And is it a ramp up or an unwind?
Any strengthening of the Yen against USD destroys the carry trade. This equity move is to be expected.
Gold doesn't seem to be listening, I think there going to need to sell a few hundred million dollars more contracts so it will get the message.
Golds holding on the hope of a surprise out of Japan tonight. When it doesnt get it, tomorrow wont be pretty. You dont think that dump was a fat finger do you? It was a well informed flush to look like a fat finger.
Please..... none of the early morning assults on gold are the result of a fat finger.
Just keep in mind that one day, perhaps not today, or tomorrow, that the POMO will come in on the short side.....
I hear you gator. I think it's possible gold goes down. It's truly funny to see how we have gone from QE4eva to the fed rushing to end it as an attempt to try to push long term rates up. We have gone from "the fed can never unwind their balance sheet" to them probably being able to shrink it a decent amount with such robust demand for UST's right now.
As great as that scenario sounds for the fed I think people just lose a little more confidence in the system by the day. That is why I think gold, lower or higher, will still be purchased.
dup poop
But Dennis Gartman says a correction is coming...
Tuesday,hmmm...
Pledge of Allegiance, to the flag…
New World Order, same as the old world order, boldly going nowhere, faster and faster, issuing debt as income to support misappropriated real estate, in stupid peer pressure groups designed for the purpose. The 99% is completely dependent upon the 1%, but the 1% is not Bill Gates, Warren Buffet, or Hillary Clinton. They did not build anything in their garages, or design any economies on the back of an envelope, but they do have moron slogans on their business cards.
Surprise, surprise, the Germans played last to lose, hoping that the pressure on its global slave labor population would produce the necessary technology to further exploit the countryside, so all the morons had to do was finance it, with an artificial surplus. Biofuel, solar, NatGas, wind and all the other proffered solutions have failed, as did nuclear and the Internet. The world doesn’t need another catalog for consumers.
If you want to see just how stupid the S&P is, look at capital gains variability by peer pressure group collecting debt as money. The hedge fund managers are welcome to all they can choke down. Now, the Swiss are throwing their own under the bus, and California is squeezing its own tax advantaged to make room for more global embezzlers. Never saw that coming.
You might want to go back and look at CAN/US, silver and US Treasuries…
When the majority lives within the means provided, labor makes one set of decisions, another when it exceeds the limits, and another when it begins to pay interest on interest. The empire majority does not appreciate the universe it has been given, so it builds artificial boxes to suit itself, becoming more self-absorbed with each iteration, measuring growth as control over its box, brilliant.
The empire participants compete to join a peer pressure group most suited to their individual stupidity, at which point they learn the secret, that the nation/state is all about extortion, saying one thing and doing another. The children of legacy have the advantage because they are bred to exploit stupidity, and the various layers of the middle class assume they are brilliant as well, until they get crushed. Labor is that which is distilled, which recognizes tyranny for all the patriotism, and acts accordingly, from the beginning.
How dare you not pledge allegiance, to stupidity.
The economy is rebooted when the majority DNA is flushed, which you are watching, and not before. The majority is welcome to abortion, feminism, chauvinism, Immaculate Conception and all the other breeding contrivances it employs to suit itself, to replace marriage, with greater control of increasingly shrinking boxes. If you look, you will see that the government unions are decimating their own economies, of which civil marriage, a contract for divorce, is the primary culprit. Flushing DNA down the toilet in exchange for an entitlement promise in a debt ponzi isn’t much of a bargain.
Empires are quite simple. They eliminate talent and issue debt as income in hopes of exploiting what talent remains, which they efficiently distribute for a price, until no talent remains, within the empire, and then change the name of the empire. War, over artificially scarce resources, is the only possible outcome, which is why America produces nothing but extortion, military hardware and software, selling others derivatives of derivatives. The hospitals are collapsing and the elderly majority is psychologically addicted to their care. Good luck with that.
You might want to cultivate your talent in privacy developed for the purpose, choose a spouse with talent, and cultivate each other’s talent in privacy, or not. The majority has simply distilled talent out of its banking system, which is why its credit is worthless, and its money is rapidly being discounted, leaving its assets stranded off-sheet, to be managed by morons who still think debt slavery is wealth, expecting to win in an artificially closed system.
The cartel may appear to be a hydra, to the middle class selling itself out to itself, but for labor it’s just a virus, and the upper middle class only mimics an economy, for the purpose. Children choose to lead, follow or get out of the way by age two. You can’t choose your parents or your children, but you can choose your assumptions.
If the upper middle class wants to ‘fix’ the economy, it might want to get the F out of the way, or not, before its DNA gets prematurely flushed. Breaking windows to learn how to fix them more efficiently is not an economy. Critters killing each other in a sh-show is no emergency to labor. It happens all the time, for a reason.
Marriage is between a man and a woman, seeking the unknown, becoming one in the process. Everything else gets distilled away, sooner or later.
The only future you are going to find in the Big Apple is the past, heroin or hopium, it’s all the same. We give them global communication and all they can think to do with it is attack each other. Labor doesn’t care who the majority chooses to lead it further into the past, but someone is going to sell out the feminists next. Take another look at demographics, and QEInfinity outcomes in Japan.
So, the prim and proper appearing old lady says,” I bet you are glad not to be working in that sh-hole Safeway any longer. I don’t blame you. I would rather work in hell than Safeway.”
Don’t feed an old-timer bullsh- and expect the gate to open, closing the circuit in your favor. You are following a hundred salesman that have already tried that approach, in one form or another.