Last night the BOJ expanded the trading range for their 10yr bond, reminiscent of actions taken on Christmas of 1989. The result was sharply lower stock prices in Japan, a soaring yen, and notion that the BOJ had lost control. The whole “yield curve control” by central banks are a complete scam — and so is QE. As a matter of fact, the only reason why we have central banks is for banks to set the price of money — also a scam.
The NASDAQ is up 25, a great improvement from opening prices. Natty is off by 10%, WTI -1%, and silver is +4.7% — because rumors have circulated that Elon Musk followed a fucking silver account on Twitter — which of course means Elon will now attempt to “break the Fed” via large purchases of silver.
I’m +67bps, even though I am down on two hedges at 20% of my portfolio. My intention was to NOT TRADE the morning and come back to trade and trade well. However, it looks like my schemes to keep the inverses in place backfired. NEVERTHELESS, I remain at record highs and continue to make new, fresh highs — +60% YTD.
BOTTOM LINE: We are not oversold and we are still expensive. Just because stocks are down doesn’t mean they can’t go even lower. PREPARE FOR ANOTHER LEG LOWER!
INSHALLAH.
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Inshallah Alhamdulillah!