Japanese stocks (EWJ) suffer a third consecutive day of volatility as the yen (FXY) again rises...


Japanese stocks (EWJ) suffer a third consecutive day of volatility as the yen (FXY) again rises vs the dollar, prompting some to fear that the Nikkei's decline has turned into something more than profit-taking. However, JPMorgan strategist Adrian Mowat doesn't share that view. "It is a little bit early to get too caught up in a bearish view," says Mowat. "The Nikkei's still above the 50-day moving average and Japan was very overbought." Japan -2.5%, Hong Kong +0.3%, China +0.1%, India +0.7%. Dollar -0.2% at ¥101.10.

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Comments (9)
  • David Pinsen
    , contributor
    Comments (2109) | Send Message
     
    What if you had hedged your EWJ shares before this slide started? I posted a way how on May 18th, and wrote a follow up showing how that hedge reacted to Thursday's drop a few days ago: http://seekingalpha.co...
    27 May 2013, 06:01 AM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
     
    This is because stocks rose based upon speculation, not based upon earnings. Remember, the stock market, over the long run, is a weight scale or machine. In the short run, it behaves like Lindsay Lohan in rehab.
    27 May 2013, 07:59 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3410) | Send Message
     
    Not even a casino;

     

    more befittingly, an inferno!

     

    Revert to Shogunate Rule now

     

    LOL! Really Loud! Louder and yet Louder!
    27 May 2013, 09:55 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    Futures off 7+% overnight. Some dip buying. Corr with US equity index futures, which saw more vol on the Nikkei trough. Yes, these markets are specs, and casinos are nothing new.
    27 May 2013, 10:49 AM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1240) | Send Message
     
    The BOJ's mistake is that it must be credibly irresponsible. People should be drawing political cartoons of helicopters with the letter "BOJ" painted on the tail dropping bags of yen over Mt. Fuji. Kuroda's nod to the hawks only eroded the confidence of the doves in the BOJ's commitment to a damn-the-torpedoes, full steam ahead inflationary policy.
    27 May 2013, 11:29 AM Reply Like
  • june1234
    , contributor
    Comments (4340) | Send Message
     
    Lot of people trading the Nikkei for good reason.It will go back up.Weaker yen is bullish for Japan's export driven economy which grew at 3.5% this past quarter and 1.8% bond yields is nothing that $75B a month in QE is going to chase. besides what else is all that cash going to do? Japan has always been an export driven economy, and has always had ridiculously low interest rates.
    27 May 2013, 11:49 AM Reply Like
  • winningtrader
    , contributor
    Comments (2459) | Send Message
     
    So, why has Japan had 10 consecutive months of negative trade balance? Doesn't look like a great export Renaissance.
    27 May 2013, 03:03 PM Reply Like
  • Bioalchemy
    , contributor
    Comments (175) | Send Message
     
    Terrible market... Taking a look at how often they change the prime ministers you will understand why policies are always shortsighted.
    27 May 2013, 12:09 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    I thought they said they could print their way to prosperity?

     

    This will be fun!
    28 May 2013, 12:48 AM Reply Like
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