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

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.