The BOJ unleashed a surprise QE last night. The problem is that the Nikkei, the USDJPY and the SPX futures should have exploded up. Instead they reversed and gave up all their gains and even went lower. Why? We have reached peak central banking marginal return. There are no more buyers. Maximum leverage has been reached and now I am afraid the carry trade unwind may be beginning. The omnipotence of the central bankers was accomplished through willing speculators who levered up. Like all cycles they eventually end. The central bankers really don’t have power except that afforded to it by the market participants. Perhaps the speculators have run out of ammo. We shall see. Years ago I had a trader who when asked why the market was down would always say “There are more sellers than buyers”. At the end of the day its ultimately about supply and demand.
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Joined May 7, 2014
165 Blog Posts
Basically selling a trillion yen of financials and buying capex and human intensive stocks whatever that means. Could be enough to build a few casinos to compete with Macau! WYNN for the win though I’ve been selling every rip so far. Thx Blue!
Nocturne,
There is a debate out there as to whether this is new QE or not. On the margin its more. Either way this CB game is EODs as the ability to sustain a bid in the Global markets through QE requires ever larger amounts of QE.
I’m looking at 2 scenarios, 1 of which is the market either bounces hard midday and rallies into the close, followed by 1 last push up to 2100 before the breakdown starts. The other is the breakdown kicks into high gear as selling accelerates today. Very pivotal day here for the market, just a few more hours and I’ll know whether to play for a bounce or an immediate bloodbath.
Just flushing out those with margin is all.
Sam Zell and pals are waiting with cash to
buy all your future earnings
BLUESTAR is GOD!
His market analysis is omnipotent and should be worshiped.
Get down or lay down!
Japan sucks and no QE is going to solve their demographic driven issues. That doesn’t mean all central banks have lost their power…
Well done Warlord BlueStar!
raconteur – all QE-spewing central banks will lose their power. The only question is, now or later?
The Fed raised rates, yay.
Now go and look at rates for 1 month and 3 month T-bills. Oops.
re:drone patents etc
Western Union turned down patents for the telephone. AT&T was born
closing that friday gap down pretty quick here lolz
The top is near & the xmas rally is almost complete
“David Mericle and Daan Struyven told clients in a report on Wednesday.
Such conclusions leave Goldman Sachs predicting a moderate acceleration in inflation in 2016 as the economy reaches full capacity.”
as the economy reaches full capacity, huh?
In any other position, except for weatherman; these guys would be fired immediately.
No these guys are not morons, nor are they financial analysts. They are in fact part of a very well paid circus act. Entertaining the masses as their confederates, make their way through the crowd, picking their pockets. Don’t get distracted.
Frebbie,
I can set my watch to you.