Home > Feb 2018 > Feb 6, 2018 Kuroda is Trying to keep markets calm, Low Rates for a longtime.

Feb 6, 2018 Kuroda is Trying to keep markets calm, Low Rates for a longtime.

February 6th, 2018

Tonight Kuroda was out again saying that even though he is happy with the Economic Gains that Japan has seen, he is not going to remove stimulus and that BoJ won’t be raising rates anytime soon. Japanese Bond Yields fell over the news. The Futures were down over 1% before he spoke, now they are down about .80% two hours before Europe Opens. The Big Question is will the Central Bankers be able to control this sell off? Draghi couldn’t, FOMC nope…this is Kuroda’s shot. Again I am watching AMZN to break below 1390.00. Australia RBA left rates the same tonight as expected. Bullard Speaks in the US Session. Shanghai Futures leading into the New Years Week, next week was just slightly down. China decided AGAIN (9th day) to no Open Market Operations siting liquidity ok. Yet, their equities fell with a fresh wave of Chinese companies suspending trading in their shares to avoid margin calls, with investors also spooked by China’s intensified crackdown on shadow banking Bitcoin is trying to hold 6000

Feb 2018

  • Trading_Nymph

    BEIJING, Feb. 6 (Xinhua) — China’s central bank suspended open market operations for the ninth consecutive working day Tuesday, citing sufficient liquidity in the banking system.

    “Liquidity is sufficient to offset the influence from factors such as maturing reverse repos in the banking system,” the People’s Bank of China (PBOC) said on its website.

    On Tuesday, 80 billion yuan (about 12.68 billion U.S. dollars) of reverse repos matured, meaning that market liquidity would drop by the same amount.

    A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

    The central bank has increasingly relied on open market operations for liquidity management, rather than cuts to interest rates or reserve requirement ratios.

    China will maintain a prudent and neutral monetary policy in 2018 as the world’s second-largest economy strives to balance growth with risk prevention.

  • Trading_Nymph

    Market opens down, Yet AMZN is trying to push up to test 1390. It’s at 1388….best poster child I can see if there is ANY belief that Central Bankers can save this failed Science Project of theirs. China is still not showing any interest in helping cuz IMHO, they are always worried about liquidity going into New Years and they are just going to focus on them until after the holiday.

  • Trading_Nymph

    Bullard speaks, Phillips Curve having less effect…rofl, duh and not in hurry to raise rates which is what he always says. ECU gossip too, that they are watching sell off. All test of whether the Central Banks (without China’s help) have any Power Left

  • Trading_Nymph

    AMZN up to 1415 and Bitcoin above 7000 in the first hour of US trade. With Bullard event over, the bulls have nothing more…so they have to hold this level.

  • Trading_Nymph

    ROFL…AMZN back at 1390.00…moment of truth.

  • panther341

    Hi TN – been quietly watching the chaos while working to get some things done. Also spent about 30 minutes on the phone already. Have a funeral in a couple of hours for a friend from church so I will miss the last 2 hours of trade.

    I laugh every time I see the phrase science experiment.

  • panther341

    Am listening to some guy now live explaining that last night’s big move in futures was margin call related. This guy used to work at CME. Exchanges and brokers were both raising margins and margin debt is at record highs. I will post a link later as it is live right now.

  • panther341

    a big trade for the last 2 years has been short volatility. Yesterday 2 of the etfs in this trade blew out. Yesterday was a day of alot of margin calls and there are probably more to come today. This article is on the 2 etfs which blew up yesterday. https://www.marketwatch.com/story/volatility-armageddon-cratered-one-of-wall-streets-most-popular-trades-2018-02-05

  • panther341

    I am reminded of “When Genius Failed” when the Nobel Prize winners trading bonds blew up. If you haven’t read that book yet – you really should.

  • panther341

    trader who went bust trading nothing but XIV. OMG His army savings plus alot of other people’s money. https://www.marketwatch.com/story/xiv-trader-ive-lost-4-million-3-years-of-work-and-other-peoples-money-2018-02-06

  • Trading_Nymph

    It was crazy.

  • Trading_Nymph

    I haven’t read it yet.

  • Trading_Nymph

    Ouch…but if we are right about this all being one huge Bubble, it will be just the start of many ugly stories that the Central Banks created.

  • Trading_Nymph

    I have been following that..lot of law suits coming from it. Even though it was in writing.