Meddling With Powers?
Following up on Beware The Ides Of Winter?...
December 12th, RUT -1.5%... closing below the aforementioned gatekeeper 1460 for the 5th straight session.
December 14th's cheerful holiday follow up, Asia -2%, Europe -1.5%, bonds getting bid, commod's down, ES futures -1%... Dollar roaring with Yen carry in tow. Speaking of which... Sherman, crank up the wayback machine to March 2017....
and widening UST/JGB 10 year spreads...
One might wonder if the fallout (when you dance, you must eventually pay the piper) from the practice enumerated above, has anything to do with the above widening?
Moving West...all of this is not to say that Xmas has been cancelled or outlawed. Upon further review (again note since March 2017)....
Coming full circle from "the bulls having a strong run left", Steve Jobs "last words" and "Where's your sign?"
The point of all the above being, where there's smoke, there's a FIRE (economy), as in not enough substance (durable economic investment behavior) ? too much alchemy (financialism) ?
Somehow one is reminded of this...
Stay tuned, no flippin, more to come in The Perfect Storm?
@"B"isForBob - Its looking like the bulls still have a very strong run left. Unless we get a close below 2630, I will not dare short this market. 13 Dec 2018, 07:41 PM
"Oh wow. Oh wow. Oh wow." - Steve Jobs' last words - 13 Dec 2018, 09:08 PMThe Nattering One muses... Sounds like a bunch of bull? Oh Wow... Where's your sign?
December 12th, RUT -1.5%... closing below the aforementioned gatekeeper 1460 for the 5th straight session.
December 14th's cheerful holiday follow up, Asia -2%, Europe -1.5%, bonds getting bid, commod's down, ES futures -1%... Dollar roaring with Yen carry in tow. Speaking of which... Sherman, crank up the wayback machine to March 2017....
An investor can borrow yen, paying yen interest rates, in exchange for lending dollars and receiving interest on them. In other words, a bank effectively borrows one currency while using the other currency as collateral.
Two-year JGBs now yield minus 0.26 percent. Using a technique called asset swaps, however, they can be repackaged into two-year floating-rate dollar bonds that yield about 0.30 percent, or 30 basis points, above the benchmark London InterBank Offered Rate (LIBOR).
That is a hefty yield enhancement compared with two-year U.S. Treasuries notes, which would yield about 35 basis points less — not more — than the LIBOR if investors swap their fixed coupon into floating rates. - Dollarized Swapped JGB's - Reuters - March 24, 2017Flash forward, now look at what the UST/JGB 2 year spread has done since...
Moving West...all of this is not to say that Xmas has been cancelled or outlawed. Upon further review (again note since March 2017)....
The data “means that the worst is yet to come and policymakers will be very worried, particularly with consumption growth falling off a cliff,”
“So I expect further support measures including rate cuts will come in coming weeks, although these data would indicate measures to date aren’t really working.”
“If U.S. shares fall below their triple bottoms hit recently, that would be a very weak technical sign.” Global Growth Worry Hits Stocks - ReutersAbove commentary coming out of China, where as opposed to a FIRE (finance, insurance, real estate) economy, something actually resembling a real economy, still exists.
Coming full circle from "the bulls having a strong run left", Steve Jobs "last words" and "Where's your sign?"
The point of all the above being, where there's smoke, there's a FIRE (economy), as in not enough substance (durable economic investment behavior) ? too much alchemy (financialism) ?
Somehow one is reminded of this...
Stay tuned, no flippin, more to come in The Perfect Storm?
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