BoJ Balks

Last Halloween, the BoJ treated the “markets” with an enormous increase in QQE that sent USDJPY soaring 15% over the next few months.  Thanks to the magic of the yen carry trade, it stopped the October meltdown dead in its tracks and enabled stocks to reach new all-time highs.Last night, with most pundits expecting a … continue reading →

Does it Count?

If the “market” is driven higher by blatant manipulation, in clear defiance of the fundamental laws of economics, does it still count as a rally? Yesterday, the FOMC delivered a near carbon copy of its Sep 17 missive — the one that precipitated a 148-pt ( 7.3%) decline in SPX. Sure enough, SPX fell immediately … continue reading →

When the Music Stops…

Another day, another central bank announcement.  Actually, make that two central banks, and the big one yet to come on Friday. In an effort to keep up with the ECB, Sweden’s Riksbank went all-in’er earlier this morning.  Around and around they go, waiting for the music to stop…. As with any other FOMC announcement day, … continue reading →

Central Banks Can Relax

The two charts on everyone’s minds this week are the meeting schedules of the FOMC and BOJ.  The Fed gets started tomorrow and announces Wednesday, and the BoJ bats clean-up on Friday.The FOMC has been fostering sentiment that they’ll do something.  And, the BoJ has been downplaying their interest in doing anything.  From a market … continue reading →