The collision of global markets and social mood

Wednesday, April 22, 2015

Wednesday -- The Apple Market, From Purgatory To Nightmare

ES Futures:
Down slightly, looking corrective.

More subconscious communication, which, if true, means that the market is far worse than most realize.

It's bad enough for the market to be a single stock. But minutes later, though . . .

Why get biblical?

Notable action today in EUR, GBP, CHF, AUD.

Regarding JPY, the last word you want to hear from a former top currency official is nightmare . . .

Highly levered cowboys will likely focus on the bolded statements (emphasis mine) as proof all will be OK for a while.

"Japanese government debt twice the size of the economy will make exiting stimulus a nightmare for central bank Governor Haruhiko Kuroda, according to the nation’s former top currency official.

"Makoto Utsumi, who oversaw foreign-exchange policy at the Ministry of Finance from 1989-1991, said the Bank of Japan’s expansion of its balance sheet into debt with an average remaining maturity of up to 10 years makes it impossible for Kuroda to pare stimulus “for the foreseeable future” without causing bond yields to surge. Speculation that the BOJ will accelerate its note purchases helped push two-year yields below zero percent on Wednesday for the first time since January.

“The thought of exit itself is a nightmare for Japan, not whether it’s premature to talk about it,” Utsumi, 80, said in an interview in Tokyo on April 15. “There is no choice but to keep issuing bonds for financing, and with buying of longer dated JGBs, a natural exit is out of question as is unwinding.”

The longer prices act the way they've been acting, the more I get concerned.

WTI crude looks coiled for more upside. NG looks ready for more confusion.

Gold. 1198.

S&P Outlook:
Sticking with the new all-time high thesis. 2072.37 should not fail if tested.

A/Ds were weak at yesterday's spike high. More rest needed. At some point some Fed jawboning may be required.

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