The Controversial Nikkei and the Yen Carry Trade (FAKE)Nikkei - From July 8 to Aug 5 - Fell 28.5% - approx 1 month
From last Monday it went 20.7% - 4 times faster than it fell
And the entire world was so negative the previous weekend as if this is going to be the end of the world
Where are the TV Analysts who predicted a Global Catastrophe now ?
Where are the Controversial Kings who predicted US Recession ?
Pin drop silence across all the TV Channels. And yet, the Regulatory bodies around the world including SEBI doesn't take action on them for triggering Panic and causing Hard Losses to Innocent Retail Investors
Don't judge the Book by its cover !!! Don't accept any analysis by its face value !!!
Do you own research - just using Charts - you don't need anything else and you will be able to uncover even the greatest of Controversies killing the world market
Yencarrytrade
BOJ Rate Hike Causes Unrest in the Stock Markets: What next?When the Bank of Japan hiked its interest rate at the end of July, global markets went into turbulence.
We will discuss what currency carry trade is, why the yen carry trade has caused this global volatility, and, importantly, whether the market will resume its uptrend.
Micro E-Mini Nasdaq Futures and Options
Ticker: MNQ
Minimum fluctuation:
0.25 index points = $0.50
Japanese Yen Futures
Ticker: 6J
0.0000005 per JPY increment = $6.25
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The Bond Market is Pricing in a Collapse of The Yen Carry TradeThe spread between the US10Y and JP10Y has historically been a great leading indicator of contraction within the Yen Carry Trade and likely will be into the future.
If we were to apply TA to it, we can see that the spread appears to be Double Topping and has formed a Bearish Shark at this top as the RSI breaks down and the MACD Diverges. If we are to take this as a warning, then we should expect this spread to go down significantly, and that would be accompanied by the contraction of the Carry Trade, leading to lower liquidity and signfiicantly tighter credit conditions and ultimately a depreciation in market pricing.
I think we could see JPY and USD strength during this time but would avoid other currencies.