Kuroda has mortgaged the future of Japan’s children, grandchildren, great grandchildren, and so on, by plunging his country hopelessly into debt to artificially prop up asset prices . Let’s take a look at how DECADES of this idiotic thinking have been working by way of the Japanese ETF:
I’ll make this quick, since the ol’ laptop is almost out of juice anyway. I’ve been watching with fascination what’s been going on with the Yen tonight. My stomach was in knots as Kuroda’s time approached, and I groaned to watch the USD/JPY roar higher and drag the ES along with it, ripping it around 22 points higher. Even the NQ, which had been deeply red thanks to Amazon exploded into the green. I was bracing myself for a rough Friday.
Well, who knows what I’ll be looking at when I wake up Friday morning, but for now, I’m a little less worried than before.
As I type this (and it hasn’t even been an hour since the news of NEGATIVE interest rates in Japan broke), almost the entire ES rally is gone, and the Nikkei went from the 18,000s to the 16,000s within the span of minutes. This is the kind of mayhem that Central Banker government bureaucrats can inflict on the “market.”
I’m not resting easy yet, but there’s hope. See you in the morning. (Late Nite Update: I can see the ES and NQ have bounced once again well into the green, following the USD/JPY. Friday should be interesting, to say the least.)
It seems like years since we’ve heard from the central bankers and their never-ending “stimulus”, but Mario Draghi broke the silence this morning by hinting at – yep – more stimulus (because it’s worked oh-so-well and making Europe the dynamic economic powerhouse that it is today). And down the Euro goes………..
Well, here’s a long idea for a change! Mexico has reached major support, and I think it’s time for a bounce. As for myself, I’ve lightened up to 57 short positions, none of them big, and no ETFs. As of this moment, 36 are profitable, 21 are not, and I’ve adjusted stops across the board. I’m only about 2/3rds committed right now, and I’d like to see how this bounce plays out before pushing back in. Anyway, here’s the Mexico chart:
The story of many traders’ years so far has been China fears causing a big sell-off in the indices.
One gauge of market sentiment that I look at from time to time is my chart grid of Foreign ETFs, showing the daily ATR on each ETF (the white histogram at the bottom of each ETF)…an extreme high ATR can often signal capitulation and a reversal of recent general trend.
From the chartgrid below, we’re not seeing that extreme, yet. In my opinion, we could very well see further downside on these ETFs, in general, for awhile longer.