This Is What "Something Big" Looks Like In This Market

Tyler Durden's picture

It was just over a week ago when we first brought attention to something nobody else was focusing on (yet): Bernanke's visit to Japan, where he was set to "secretly" - because it quickly became very "public" - meet with Kuroda and Abe in what was set to be the first official pitch for Japan to adopt "helicopter money."

The article, prudently, was called "Something Big Is Coming: Bernanke To "Secretly" Meet With Kuroda; "Helicopter Money" On The Agenda" and we concluded as follows:

So is it time? Is Bernanke about to unleash the next, and final, monetary policy evolutionary step, one which launches "helicopter money" in Japan, and if successful, brings it across the Pacific to the US?

 

We don't know, but if anyone is still holding on to USDJPY shorts, now may be a good time to quietly close them out, because if we are right, and a "helicopter money" is about to be served for the first time in modern history, things are about to get very volatile, very fast.

Now that one week has passed, we can look back to see if "something big" indeed came.

It did.

As the chart below shows, those who covered their USDJPY shorts lucked out; better yet anyone who went long the USDJPY, just experienced the move of a lifetime because the Yen just had its biggest weekly drop in the 21st century, going all the way back to 1999.

And since the Yen remains the carry currency of choice for all risk assets, the biggest drop in the Yen this century managed to push the US stock market to not only all time record highs, but 4 (so far) consecutive days of new record highs, something not seen since... the 20th century.

And that, dear readers, is what "something big" looks like in this "market" and we all have Ben Bernanke to thank for it.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
maskone909's picture

Watch them do helicopter money and the yen goes to 80 lmfao... Just to fuck everyone

froze25's picture

It is totally artificial though, this will do nothing to increase demand, it won't increase the Japaneses birth rate, it won't stop the nut job Orthodox Muslims, it won't increase spending, its total smoke and mirrors, I give it 2 month effect at best if not shorter.

TheVillageIdiot's picture

I was going to ask... why 2 months? life cycles from everything economic seem to last no longer than 10 business days...

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) TheVillageIdiot Jul 15, 2016 2:06 PM

The helicopters have arrived.  The printing presses are rolling.  The rise in the stock market is pure inflation.  They are fixing the bubble with inflation.  History has seen the outcome of this many times.  There is no question of how to play this, only a question of what ones timing should be.  I'd say we are definitely early.

bamawatson's picture

heck, headline made me think article would inform me of enron musk's new "secret plan"

stant's picture

Something big is here

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) stant Jul 15, 2016 12:57 PM

Yellen has set the S&P at down half a percentage point in mourning of the fallen French citizens

When Markets Fall's picture

ZH whining.  Ben carries a bigger bazooka than you.

venturen's picture

but he keeps shooting himself in the ass...

MrTouchdown's picture

That's what she said. 

hedgeless_horseman's picture

 

We are all currency traders Titanic passengers now.

TheVillageIdiot's picture

funny - just remarked that exact sentiment to a client - make sure you are not rearranging deck chairs on the Titanic...

wildbad's picture

federal banks propping up the last canard and measure of thier "success"

When Markets Fall's picture

I think they have years of 'candard' left.  Time to capitulate?

tiethetubes's picture

Keep shaking those champagne bottles, it's only a matter of time...

firstdivision's picture

Did all those short Yen taders close out and go log NG? https://finviz.com/futures_charts.ashx?t=NG&p=m5

Swamp Yankee's picture

O my Dog, not this again.    Just crash already.    O great Meteor have pitty on us all.   -SY

divingengineer's picture

I, for one, would like to welcome our new astronomical overlord. 

divingengineer's picture

Let them blow their wad and get this shit-show over with. 

wobblie's picture

We all know the economy is going to collapse again, but these charts ad nauseam are just financial masturbation.

https://therulingclassobserver.wordpress.com/2016/05/17/how-liberals-and...

Wang Dang SP's picture

My stable of ho's are waiting for helicopter money and "Something Big". 

Ghost of Porky's picture

It time to fry the hericopter!!

assistedliving's picture

reminds me of Japanese "experimentation" during WWII.

Unit 731 Hepburn anyone?  (no offense intended.  we're all the victims this time round)