The yen (FXY -0.9%) legs down to a new multi-year low - the dollar now buying ¥103.24 - continuing a truly remarkable move since late last year. It's an instance where politicians told you they were going to devalue, every trader and strategist around told you they were shorting the yen, and sure enough the yen went down ... hard, and in as straight of a line as markets ever allow. Ah, if it were always that easy. Other ETFs: JYN, YCL, YCN. [View news story]
Well, wouldn't that trade only work well if Gold is going up together with the dollar?
The Nikkei (EWJ, DXJ) soared another 2.3% overnight to top 15K for the first time since 2007 as the yen (FXY) slid 0.3% to a new multi-year low of ¥102.65. Leading was Sony (SNE), up 10% following Dan Loeb's push for a breakup. Toyota (TM) paced the exporters with a 3.7% gain. JGBs (JGBL) were calm, the yield on the 10-year flat at 0.86%. [View news story]
Don't argue with the tape. This year I am up big on my short Yen and long Nikkei option trades. In the long run, the Nikkei is worth crap at this once great nation's current trajectory, but in the meantime ....
Stocks appear set to open the week with losses as S&P 500 (SPY) and Nasdaq 100 (QQQ) futures slide -0.4%. Ex-Japan, Asia lost ground overnight and Europe's posting moderate losses, though Italy's IBEX 35 is off a more substantial 1.3%. [View news story]
I'd be shocked if the market does not end up green.
The stronger dollar has precious metals resuming their decline in force (or is the decline in precious metals strengthening the dollar), with gold (GLD) off 2.3% and silver (SLV) off 2.2%. Crude oil (USO) pulls back a bit from its recent big rally, -0.9% to $95.53. [View news story]
I am willing to bet the winnings in my Yen trade so far that the Japanese central bank is up to its old trick. But don't fight the trend, buy some put options. I am long physical, but I relish every opportunity to short the paper version.
For the first time since April of 2009, the yen (FXY) fell through the 100-level against the dollar, helping the Nikkei rally nearly 3% on the session and almost 7% on the week. Japanese equities (EWJ) are now trading at levels last seen in January of 2008. Japanese capital flows data finally showed what many had been waiting for since BOJ Governor Kuroda's shot across the bow at deflation: an outflow, as Japanese investors became net buyers of foreign bonds. [View news story]
Go go Power Rangers!!! Oh wait, I don't think that's a Japanese series, but whatever.
With Europe's Economy In The Tank, Why Is The Euro So Strong? [View article]
In strange times, I love conspiracy theories, so here's my theory: a bunch of people are forcing up the Euro while buying options betting on the Euro breakup. The higher the Euro goes, the worse all the economies get, thereby making the breakup inevitable. Otherwise the Euro will just floats down slowly, and with the help of improving exports, the game may very well get extended for a while.
There's a "real chance" Jamie Dimon (JPM +1%) may have to drop his dual chairman and CEO roles, according to sources at the bank, reports Charlie Gasparino, lamenting what he calls a politically-based attack. The key may end up being BlackRock - a major shareholder whose CEO Larry Fink also happens to be chairman. Fink, however, has his eye on the Treasury Secretary's office and may "throw Dimon under the bus" to advance that goal. [View news story]
I am not a fan of either one but I don't think Fink is a rubber stamper either. I've heard him said that QE beyond no 2 is "highly disturbing".
IShares' Malaysia ETF (EWM) will be on watch in the coming week as the country goes to the polls Sunday in a pivotal election. Opposition leader Anwar Ibrahim, promises a mix of "a market economy and Occupy Wall Street" if elected, a partial reference to his pledge to break the link between UMNO and business magnates. Meanwhile, Prime Minister Najib Razak has record stock prices (I, II, III), robust economic growth, 56 years of political tradition, and ~$3.6B in cash handouts on his side. If elected, he promises more free money — cash, as they say, is king. [View news story]
Don't look now, but this country's debt to gdp is not exactly on the safe side (Rogoff, et all non withstanding), and no matter who wins, that number is going up because well both sides have promised more free moolah.
European stocks and the euro - after some gyrations - are above their levels from just before the ECB rate cut. The Stoxx 50 (FEZ) +0.4%, led by Spain (EWP) +0.7%. ECB President Draghi's press conference is at 8:30 ET where he may (or may not) detail other easing measures, such as an easing in collateral requirements. S&P 500 futures add to gains, +0.5%. [View news story]
More on the ADP jobs miss: In addition to April coming up 36K short, March was revised down to 131K from 158K. S&P 500 futures remain flat. Treasurys (TLT) erase their sizable early losses, and are now up a hair. (full report) [View news story]
Excellent news, my option trades will be going up for sure. Bullish.
S&P 500 (SPY) and Nasdaq 100 (QQQ) futures are flat ahead of a flood of economic data including ADP jobs and PMI. The rush of earnings reports continues. [View news story]
Who cares about data. My option trades will go straight up. In fact make the data as bad as possible please.
Samsung Electronics (SSNLF.PK) says its Q1 profit rose 42% to a record high on strong smartphone sales. Net profit rose to a record KRW7.15T ($6.4B), up from KRW5.05T a year earlier. Operating profit rose 54% to KRW8.8T from KRW5.7T. Sales rose 16.8% to KRW52.9T from KRW45.3T, coming in in line with the company's guidance of KRW51T to KRW53T. The results stand in stark contrast those of Apple (AAPL), which earlier this week reported its first profit drop in a decade and forecast margins to decline in the current quarter ending in June. [View news story]
As if America didn't piggyback on the Brits way back in the 19th/20th century.
I think this is just how things work. Let's say Samsung pulls ahead with innovation, does not mean that Apple will not take what Samsung has and come up with something better.
The bounce in precious metals continues, gold (GLD) +1.6% and silver (SLV) +2.1% as buyers of the physical apparently used the rout to load up and - if anything - global central banks are leaning towards even easier monetary policy. A survey shows low bond yields are no longer doing it for central bankers and they're now looking at loading their balance sheets with equities. [View news story]
Long term bull, but the fact that silver is missing on the rally is making me think that the rout is not over yet.
The yen (FXY -0.9%) legs down to a new multi-year low - the dollar now buying ¥103.24 - continuing a truly remarkable move since late last year. It's an instance where politicians told you they were going to devalue, every trader and strategist around told you they were shorting the yen, and sure enough the yen went down ... hard, and in as straight of a line as markets ever allow. Ah, if it were always that easy. Other ETFs: JYN, YCL, YCN. [View news story]
April Industrial Production: -0.5% vs. -0.2% expected, +0.4% prior. Capacity utilization 77.8% vs. 78.3% consensus; 78.5% prior. [View news story]
The Nikkei (EWJ, DXJ) soared another 2.3% overnight to top 15K for the first time since 2007 as the yen (FXY) slid 0.3% to a new multi-year low of ¥102.65. Leading was Sony (SNE), up 10% following Dan Loeb's push for a breakup. Toyota (TM) paced the exporters with a 3.7% gain. JGBs (JGBL) were calm, the yield on the 10-year flat at 0.86%. [View news story]
Stocks appear set to open the week with losses as S&P 500 (SPY) and Nasdaq 100 (QQQ) futures slide -0.4%. Ex-Japan, Asia lost ground overnight and Europe's posting moderate losses, though Italy's IBEX 35 is off a more substantial 1.3%. [View news story]
The stronger dollar has precious metals resuming their decline in force (or is the decline in precious metals strengthening the dollar), with gold (GLD) off 2.3% and silver (SLV) off 2.2%. Crude oil (USO) pulls back a bit from its recent big rally, -0.9% to $95.53. [View news story]
For the first time since April of 2009, the yen (FXY) fell through the 100-level against the dollar, helping the Nikkei rally nearly 3% on the session and almost 7% on the week. Japanese equities (EWJ) are now trading at levels last seen in January of 2008. Japanese capital flows data finally showed what many had been waiting for since BOJ Governor Kuroda's shot across the bow at deflation: an outflow, as Japanese investors became net buyers of foreign bonds. [View news story]
With Europe's Economy In The Tank, Why Is The Euro So Strong? [View article]
There's a "real chance" Jamie Dimon (JPM +1%) may have to drop his dual chairman and CEO roles, according to sources at the bank, reports Charlie Gasparino, lamenting what he calls a politically-based attack. The key may end up being BlackRock - a major shareholder whose CEO Larry Fink also happens to be chairman. Fink, however, has his eye on the Treasury Secretary's office and may "throw Dimon under the bus" to advance that goal. [View news story]
Good show regardless.
IShares' Malaysia ETF (EWM) will be on watch in the coming week as the country goes to the polls Sunday in a pivotal election. Opposition leader Anwar Ibrahim, promises a mix of "a market economy and Occupy Wall Street" if elected, a partial reference to his pledge to break the link between UMNO and business magnates. Meanwhile, Prime Minister Najib Razak has record stock prices (I, II, III), robust economic growth, 56 years of political tradition, and ~$3.6B in cash handouts on his side. If elected, he promises more free money — cash, as they say, is king. [View news story]
European stocks and the euro - after some gyrations - are above their levels from just before the ECB rate cut. The Stoxx 50 (FEZ) +0.4%, led by Spain (EWP) +0.7%. ECB President Draghi's press conference is at 8:30 ET where he may (or may not) detail other easing measures, such as an easing in collateral requirements. S&P 500 futures add to gains, +0.5%. [View news story]
Facebook's Current Price Is Unsustainable [View article]
More on the ADP jobs miss: In addition to April coming up 36K short, March was revised down to 131K from 158K. S&P 500 futures remain flat. Treasurys (TLT) erase their sizable early losses, and are now up a hair. (full report) [View news story]
S&P 500 (SPY) and Nasdaq 100 (QQQ) futures are flat ahead of a flood of economic data including ADP jobs and PMI. The rush of earnings reports continues. [View news story]
Samsung Electronics (SSNLF.PK) says its Q1 profit rose 42% to a record high on strong smartphone sales. Net profit rose to a record KRW7.15T ($6.4B), up from KRW5.05T a year earlier. Operating profit rose 54% to KRW8.8T from KRW5.7T. Sales rose 16.8% to KRW52.9T from KRW45.3T, coming in in line with the company's guidance of KRW51T to KRW53T. The results stand in stark contrast those of Apple (AAPL), which earlier this week reported its first profit drop in a decade and forecast margins to decline in the current quarter ending in June. [View news story]
I think this is just how things work. Let's say Samsung pulls ahead with innovation, does not mean that Apple will not take what Samsung has and come up with something better.
The bounce in precious metals continues, gold (GLD) +1.6% and silver (SLV) +2.1% as buyers of the physical apparently used the rout to load up and - if anything - global central banks are leaning towards even easier monetary policy. A survey shows low bond yields are no longer doing it for central bankers and they're now looking at loading their balance sheets with equities. [View news story]