Update: rumor of Price Keeping Operation in Japan. If correct, this means that the BOJ’s $70 billion per month injection is no longer sufficient, that the BOJ’s credibility is being actively questioned – by far the biggest stigma for any central bank anywhere – and pass-through financial entities have to artificially prop up the market by buying ETFs in order to preserve the galloping rate of increase or else face a collapse such as that seen in the past several days.
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The “catalysts” in the new normal have become so hilarious that losing money in the centrally-planned market can be simply viewed as the price of admission to witness the most entertaining circus spectacle in capital “markets” history. Behold: the 8pm open of Japanese trading.
Apparently, somehow, the fact that a market has reopened is not only news, but is massively sell the Yen news, at least by Mrs. Watanabe, and since every US algo is correlated to the USDJPY, this means a surge in the E-mini. But perhaps what those sneaky algos are discounting is that tomorrow is a Tuesday. And as every dart chasing monkey with an E-trade terminal knows: nobody ever loses money on Tuesdays betting on the Stalingrad & Propaganda 500 index any more.
USDJPY: note the momentum ignition at 8 pm, driven by the “news” that Japan is now, once more, and “shockingly”, open.
And where the USDJPY goes, the ES is right behind.