UPDATE: That didn't last long... NKY back under 15k as JPY collapses
[4]
Heavy volume selling in Nikkei futures at the open sent the index down over 200 points and broke the oh-so-crucial 15,000 line. It appears - just as in August that 15,000 is the BoJ's line in the sand as a miracle buyer turned up and lifted the index all the way back to 15,000 (whiule JPY remained lower and US futures saw no bounce). Of course, for those who prefer to ignore the fact that the BoJ is almost the biggest holder of Japanese stocks in the world and bought more stock ETFs than ever before in August [5], this is a clear signal of BTFD'ers back to save the world. For the rest of the sane rational fact-checking market participants, that 'know' the BoJ's trigger to buy is a weak morning session, we wonder how much of this futures ramp is front-running... that will fade as JPY is not supportive at all.
Who has the muscle to do this in size in the face of heavy volume... in the face of VongFong too
[6]
Because it's not carry traders lifting it...
[7]
Now where have we seen that miracle buying before...
Don't forget the market's perception that if Japan is down 1% in the morning, the BoJ comes to the rescue... [8]or is it different this time?
Charts: Bloomberg
