market direction

IMO in the last few months there has been a renued carry trade on the yen which as been buying us stocks and proping the market up. as the yen started to rise yesterday all those carry shorts had to cover and in turn stocks sold off as the carry unwinded. this makes perfect sense if you track the time line of the yen strength preceding the sell off.

i would like to know what role the plunge protection team played at those lows
 
N Rothschild said:
i think it was a combination of a hugely overbought market, a TON of stops, margin calls

and a few malfunctioning HFT algos chasing the momentum and front running everyone into the lows.

the idea that one person at citi caused it just isnt true and the yen was off to the moon before the break down.
Click to expand...

Agreed.
HFT needs to be banned outright.

Peter
 
N Rothschild said:
i would like to know what role the plunge protection team played at those lows
Click to expand...

The PPT is supposedly composed of Goldman Sachs and I believe JP Morgan, possible others. They do the Fed's bidding at the behest of the FED.
Imagine this scenario...
Goldman and others completely destroy an already weak market with their HFT and flash orders to flush everyone out...then do the Fed's PPT work at the lows to "Prop up the market".

My opinion...but it's not hard to fathom. Depends whether or not Goldman made $$$$ Billions on the crash.

Peter
 
Last edited:
N Rothschild said:
IMO in the last few months there has been a renued carry trade on the yen which as been buying us stocks and proping the market up. as the yen started to rise yesterday all those carry shorts had to cover and in turn stocks sold off as the carry unwinded. this makes perfect sense if you track the time line of the yen strength preceding the sell off.

i would like to know what role the plunge protection team played at those lows
Click to expand...

Carry trade means selling the low yielder and buying the high yielder. USD and JPY yields are the same, so if indeed the market was long USD/JPY (which it might have been), it is not a "carry" trade, it's a simple directional play.
 
usd and jpy yields arnt the same. BOJ base rate is .1%, FED is .25%. when your short a few billion .15% matters.

go stop coming on my thread and telling me im wrong about something, when im not lol.
 
N Rothschild said:
usd and jpy yields arnt the same. BOJ base rate is .1%, FED is .25%. when your short a few billion .15% matters.

go stop coming on my thread and telling me im wrong about something, when im not lol.
Click to expand...

Thanks NS - made some decent money today on the back of you highlighting the carry trade - credit where credit is due.. apprecaite it!
 
“While our policy is not to comment on individual participation in our markets, in light of volatile market conditions, CME Group confirmed that activity by Citigroup Global Markets Inc. in CME Group stock index futures markets does not appear to be irregular or unusual in light of market activity today.”

knew it was bs!
 
cool, looks like sierra charts lol but whatever. i'm looking for somewhere where i can get charts on economic data, financial markets, futures, etc going way back though. i found this website but i don't think it's really accessible for a schoolboy :eek:.
https://www.globalfinancialdata.com/index_tabs.php
anyway where's that tudor jones video? im typing some stuff out and itll take an hour - by time im finished i can watch a sweet video !
 
well so far in my journey of discovery i've discovered, among other things, that stuff costs dollar - hence why the richest are generally better!
 
just watched jones takes 5% hit, then make it all back... can really learn from him when he says ' i wanna sell so bad...im long so much i'm scared...i shouldn;t even be talking about this, i should just go work out'
 
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