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Japanese Jawboning Fail - Nikkei Crashes 1000 Points From Overnight Highs
For a brief few minutes, overnight saw exactly the reaction that central planners had hoped for when The Bank Of Japan announced it would buy 'moar' stock ETFs and extend bond duration buying ad nauseum. However, within just 15 minutes something happened that we haven't seen since the world embarked on this experimental nightmare. Despite the front-ran promises to buy Japanese stocks "whatever it takes" traders sold... and sold large.
After a 500 point "business as usual" spike, Nikkeie 225 crashes over 1000 points as traders recognized The BoJ's desperation...
As Bloomberg reports,
The new program is in addition to the 3 trillion yen the bank already spends on ETFs each year, the BOJ said on Friday. The BOJ also said it would extend the average maturity of holdings of Japanese government bonds to seven to 12 years, and increase the amount of individual Japanese real estate investment trusts it can own. The Topix index sank 1.8 percent to 1,537.10 at the close in Tokyo, reversing a gain of as much as 2 percent.
“At 300 billion yen, it’s on the scale of margin of error. The impact to the stock market will not be big,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd. “If it’s this small, some investors will think this is the best they can do. Kuroda himself says he never does anything half-baked, but frankly speaking this is half-baked.”
...
“Investors were buying on hope,” said Hiroaki Hiwada, a Tokyo-based strategist at Toyo Securities Co. “But they are realizing now that it’s not actually a big deal,” he said. “People are disappointed after looking at the details closely.”
As Kuroda loses his magic touch, the overwhelming sense of panic washes across every carry trader and algo hesdline reader in the world
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and so it begins
So what exactly happens when exponential reverses?
Sum Ting Wong?
Financial war? Who did the selling? The Fed Wednesday bombed all the emerging markets including Russia Iran and China. Is this a counterstrike?
my algo rolled n puked
quick! switch to the log charts!
Dong,where is my Auuutoomooobiiiiilllleeeeee?
Honor among thieves, hahaha my ass.
in their defense they have been propping up the s&p. it's tough to juggle very many bowling balls.
In 3 2 1 ....
“Investors were buying on hope,”
Hope... yeah....hope
Reminds me of the 2008 election
The upcoming crash is much like my upcoming colonoscopy. I know its coming, I dread the thought, but I'd rather get it over with than worry about it.
Just say no. I know (knew) more people who died of colonoscopies than who died of colon cancer. 2:1
Perforated colons are a bitch. My opinion only.
The prep is worse than the procedure. Clean yourself out well to make it worthwhile.
Eventually this propped-up Ponzi must fail.
The US Federal Reserve's grand experiment experiment in Japan will fail.
It's why Japan is building it's army once again to use war with China to get out the failed economic experiment.
That faded quickly...
Two words for the sheeple: Star Wars.
The ignorant will be flocking to theaters while the global financial system implodes.
It is evening on Tatooine, and a young Skywalker is looking up at the stars and thinking how peaceful it is out there - but little does he know that on a distant planet - Central Bank Wars are being waged!
May the Fed be with you.
I will not be attending SW opening, but I must admit I will watch the movie in the near future. I am suffering from crash fatigue and do need the occassional respite. It takes alot out of a person staying on top of the news cycles and preparing for impending doom (and a major lifestyle change). But you are a newbie here and just don't understand.....
;) haha
I have a yen for you. Drop you pants and let's bond.
Soooooo manipulative, when will congress label them as currency manipulator ?
I think the leaking reactors at Fuckasheema has caused radioative waste to enter the drinking water. Doesn't the pavlovian public know that that was a BUY with both hands directive?!
so what if the average citizen is looking for places to sleep under bridges. they should believe in our collective unlimited fiat!
This could never happen here.
"The Bank Of Japan announced it would buy 'moar' stock ETFs"
this is incorrect, those who are curious are encouraged to go to the source:
latest statement:
http://www.boj.or.jp/en/announcements/release_2015/k151218a.pdf
previous statement:
http://www.boj.or.jp/en/announcements/release_2015/k151119a.pdf