The "RISK ON" Shanghai Accord officially ended Friday. Gamblers didn't get the memo...
Friday's stock market levitation to new recovery highs was compliments of the Federal Open Mouth Committee (FOMC) aka. Janet Yellen, who with one speech took back everything she'd been saying since March regarding the unlikelihood of a near-term rate hike. Stocks, which had taken everything she said that was dovish as bullish, took her speech on Friday as bullish as well aka. Manic mode.
Friday's stock market levitation to new recovery highs was compliments of the Federal Open Mouth Committee (FOMC) aka. Janet Yellen, who with one speech took back everything she'd been saying since March regarding the unlikelihood of a near-term rate hike. Stocks, which had taken everything she said that was dovish as bullish, took her speech on Friday as bullish as well aka. Manic mode.
Due to all of that chicanery, USDJPY staged another bounce in the direction higher, nevertheless, the correlation between the Open Mouth Committee and JPY carry trade grows weaker and weaker...
One chart to rule them all:
This shows that the relationship between Fed bullshit and global risk is breaking down. Global markets are starting to ignore Police Squad.
This shows that the relationship between Fed bullshit and global risk is breaking down. Global markets are starting to ignore Police Squad.
USDJPY (black) with US One Year Treasury yields. The Shanghai Accord which officially ended on Friday, merely served to weaken USDJPY in the interim by weakening the dollar...
Aussie / JPY equals "China"
Rule #1: Never drive forward by looking in the rear view mirror:
Rule #1: Never drive forward by looking in the rear view mirror:
Barron's May 28, 2016
Why the stock market won't crash
"There isn’t a single recession on recent record that can be traced to reversals abroad. As Michael Lewis, president of Free Market, observes, “While a U.S. sneeze can give the rest of the world the proverbial flu, the reverse still doesn’t happen.”
Why the stock market won't crash
"There isn’t a single recession on recent record that can be traced to reversals abroad. As Michael Lewis, president of Free Market, observes, “While a U.S. sneeze can give the rest of the world the proverbial flu, the reverse still doesn’t happen.”
