Creditcane™: REPETERE AD INFINITUM: CAVEAT EMPTOR.
Bearish short day. Midpoint above EMA(10). Still above all SMA's. Now failing the 0.0% retrace (1463.76). No daily 3LB changes (reversal is 1432.12). QE2infinity.
Bullish long day (confirmed bullish harami). Midpoint below EMA(10). Holding above the 50.0% retrace (78.72). Still failing all SMA's. No dally 3LB changes (reversal is 79.89).
Bearish short day. Midpoint below EMA(10). Still failing all SMA's. Tested and failed its 0.0% retrace (14.27). No daily 3LB changes (reversal is 17.82).
Bullish short day. Midpoint above EMA(10). Holding above its 38.2% retrace (1730.90). Still above all SMA's. No daily 3LB changes (reversal is 1705.60). Must have the precious.
Bearish long day (evening star now formed). Midpoint above EMA(10). Still above all SMA's. Tested and failed its 38.2% retrace (1.3127). No daily 3LB changes (reversal is 1.2870).
Spinning top day. Midpoint above EMA(10). Still above all SMA's. Holding above its 61.8% minor retrace (40.10). No daily 3LB changes (reversal is 40.38).
Bullish short day. Tested and held SMA(144). Midpoint above EMA(10). Now failing its 50.0% minor retrace (18.42). No daily 3LB changes (reversal is 16.82).
Bearish long day (confirmed bearish engulfing). Tested and failed SMA(21). Midpoint below EMA(10). Tested and failed its 38.2% retrace (95.94). No dally 3LB changes (reversal is 94.95).
Bullish short day. Still above all SMA's. Midpoint above EMA(10). Holding above its 38.2% minor retrace (32.15). No daily 3LB changes (reversal is 32.41).
Spinning top day. Midpoint above EMA(10). Still above all SMA's. Now failing its 61.8% minor retrace (50.92). No daily 3LB changes (reversal is 49.29).
Spinning top day. Still above all SMA's. Midpoint above EMA(10). Tested and held its 61.8% minor retrace (0.7765). No daily 3LB changes (reversal is 0.7645).
Bullish short day (still confirmed hanging man and bearish harami). Midpoint above EMA(10). Still above all SMA's. Holding above its 38.2% retrace (3.673). No daily 3LB changes (reversal is 3.688).
Bullish short day. Still above all SMA's. Midpoint above EMA(10). Tested and held its new 0.0% retrace (699.80). New high on daily 3LB (reversal is 682.98).
Bearish short day. Midpoint below EMA(10). Still above all SMA's. Tested and failed its 61.8% minor retrace (312.29). New low on daily 3LB (reversal is 320.92).
IT HAS BEGUN. YOU HAVE BEEN WARNED.
3 comments:
Payback time?
http://www.zerohedge.com/news/bond-wars-chinese-advisor-calls-japanese-bond-dump
Bond Wars: Chinese Advisor Calls For Japanese Bond Dump
Earlier today we casually wondered whether the US stands to lose more by supporting China or Japan in their escalating diplomatic spat, considering the threat of a US Treasury sell off is certainly not negligible, a dilemma complicated by the fact that as today's TIC data indicated both nations own almost the same amount of US paper, just over $1.1 trillion. In a stunning turn of events, it appears that China has taken our thought experiment a step further and as the Telegraph's Ambrose Evans-Pritchard reports, based on a recommendation by Jin Baisong from the Chinese Academy of International Trade (a branch of the commerce ministry) China is actively considering "using its power as Japan’s biggest creditor with $230bn (£141bn) of bonds to "impose sanctions on Japan in the most effective manner" and bring Tokyo’s festering fiscal crisis to a head." I.e., dump Japan's bonds en masse.
Should this stunning recommendation be enacted, not only would it be the first time in world history that insurmountable credit is used as a weapon of retaliation, it would mark a clear phase transition in the evolution of modern warfare: from outright military incursions, to FX wars, to trade wars, culminating with "bond wars" which could in the span of minutes cripple the entire Japanese fiscal house of cards still standing solely due to the myth that unserviceable debt can be pushed off into perpetuity (as previously discussed here).
also see http://www.telegraph.co.uk/finance/china-business/9551727/Beijing-hints-at-bond-attack-on-Japan.html
Japan trying to get ahead of China?
http://www.zerohedge.com/news/bank-japan-increases-asset-purchases-y10-trillion-total-program-now-y80-trillion
Bank Of Japan Increases Asset Purchases By Y10 Trillion, Total Program Now Y80 Trillion, Total Debt Still Y1 Quadrillion
The BOJ's latest attempt to keep doing what has definitvely failed for 30 years, hoping this time it will be different, as a result of the just announced latest expansion in the asset purchase program's size by yet another Y10 trillion, this time to a total of Y80 trillion. The expansion impacts only JGBs and T-Bills, both of which will be monetized by a further Y5 trillion. Putting this in perspective, Japan's total public debt is Y1 quadrillion, and counting very fast. All other components of the Japanese LSAP program, including CP, Corporate Bonds, ETFs and REITs (yes, unlike the Fed, the BOJ is quite open about its equity and corporate bond purchases) remain the same. Bottom line, just as we predicted back in July 2009, the global race to debase continues unabated, and as a result of QEternity will merely accelerate until the only true currency is [gold] tungsten.
These markets make no sense. I know opex is Friday, there are CDS rollovers, index rebalancing, etc. More than enough to keep the bulls happy. But for how long?
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