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Writer's pictureStéphan

FED Sep pricing 40bps / BoJ already backtracking / Harris picks Walz / Nature of JPY carry trades / UST auctions next



  • FED pricing is back to about 40bps for Sep, went as high as 60bps or so on Monday, BoJ 'admitting' they wouldn't hike anymore if markets are volatile/unstable, not a good sign really, decent JPY (USDJPY highs 148 and now resistance-previous support..) & Nikkei squeeze overnight, it remains a relatively volatile market, most opinion will change daily...depending on price action...stay cool focus on your own risk management >>> US Treasury auctions (3-, 10-, 30-year) are key as yields hit the lowest since Dec 2023

  • Markets will remain volatile intra-day for a while, so long as VIX remains 20+ (it's not dead near 12-13 anymore..), the market is still highly leveraged, many 'real money' didn't do much on Monday/Tuesday, if VaR's remain high, expect better Eq sellers' on rallies, reducing risk on owned positions

  • Harris' pick of Walz amps up excitement in Midwestern states where Democrats look to heal divisions

  • Saudi Aramco to pay $31B in dividend despite declining profit - see below

  • SunPower, once a venerated name in the US solar industry, has filed for bankruptcy , in 2021, at the peak of the ESG bubble, SunPower was worth >9 billion

  • #APPL Buffet got out for many reasons, including this one : Google antitrust ruling may pose $20 billion risk for Apple #GOOG

  • #NOVO after huge rally YTD - another darling stock struggling after missing estimate

  • Police are braced for riots in at least 30 locations today after more than a week of violence across the UK

  • Mercedes-Benz EQE Fire Incident Raises Questions About Chinese EV Battery Safety

  • #JPY : the nature of carry trades : they go up on the escalator and down the elevator...always

 



Thousands of police braced for day of riots as Elon Musk fans flames with tirade against Starmer | The Independent he's struggling, so he's spreading propaganda, and suing other companies for not spending on his platform..



Michael Burry Stock Tracker ♟ on X: "Grab a cup of coffee, you won't want to miss this Many are speculating that this week's sell off in the market is due to Bank of Japan's unexpected large interest rate hike which led to a massive unwinding of the yen carry trade Let's breakdown exactly happened 🧵: https://t.co/Kew8T5zntz" / X and What is the yen carry trade and why does it matter now? – The Armchair Trader >>> bottom line, a combination of events, suddenly triggers an overconfident and overleveraged markets, which said for months that nothing wrong can happen/it's all good, and suddenly it does.. it always comes along over the years, always, when markets get overly confident, nature of carry trades : they go up on the escalator and down the elevator...always









we could go back to 148 area, markets on high vols now #USDJPY


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