This remains one of a few important indicators I am using to determine how stocks resolve this last months price action. The USD/JPY.
As you can see, we’re breaking balance in the indices today.
The USD/JPY broke balance last week, and failed. It popped right back up into its trading range.
Here’s a monthly chart to give you the significance of this price action.
This has been a great smoke screen filter lately. This was the reason I said last week to “Cool off on the longs for a bit. If you are in cash, start buying in about three weeks from now.”
This move lower is not being confirmed by the Yen, just like the move up last week was not being confirmed either.
Something to keep an eye on.
OA
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Any thoughts on why the USD/JPY relationship should be an indicator?
High correlation I suppose? I’ve blogged about this often here.
http://www.businessinsider.com/correlation-between-us-stocks-and-yen-2013-6
Carry trade. I’ve noticed high correlation when there is a lot of unwinding of one position.
I tried so hard to find a Mr. Hankey piñata pic to post… no luck.
Man, I looked everywhere. How does that not exist?
You’re a witch!
Decent entry point for AMZN if you are bullish
guru says the FXY (yen) is goin to 84..its at 80.75 now
he also thinks spx has a date with 1700 before all is said and done
You have a guru too?
FXY should be higher here if that were the case. Had a shot last week and didn’t want it.
buy NQ 4241
bailed -4 getting close to a buy for a nice daytrade though
Grabbed some TWTR at $27 for a daytrade unless it can trend up from here. Will close out on a move below $26.5.
another top engineer bailed today
Anyone have a link to that “Something’s Fishy” article Jeff posted prior to Bear Stearns collapse?
Sure, I can post. Why?
Was just telling a friend your story after all these doom-and-gloom posts from Fly regarding the Texas oil industry. Super cool story and the post is legendary… Random request I know. Thanks.
Will post here in a bit.
“TURD PINATA”
LMAO!!
Grabbed some SSO at $56.45. Also just a daytrade.
Looks like $SPX will get smoked more to close ? Jeff how do you pick Bottom. always surprises me ..Great call though
Great call on…?
BUY RED . SELL GREEN
I’m hesitant with moves that look “too clean” but the /Es daily chart says new low. Simple abc down.
I called the PPT and told them to get Crude moving….contract should trade $47+ in short order
Just loaded on $UWTI. $UGAZ next
$JNUG soon too?
Like the look on USO
Wonder if Jeff’s circle of bears have almost finished climaxing yet… A green day tomorrow as the worlds ends would be great!!!
http://imgur.com/wLr0EW3