The BOJ is committed to devalue the YEN and the ECB is trying to dampen the effect. So after today's ECB's words, the EURO is crashing, the YEN is up, and the USD is way up. Consequently US stocks are down.
Could be a good day for SKUL to make a low volume test of the low.
The YEN futures have been tanking since November and are now extended.......they've done a 161.8% fib extension. So this is a logical place for the YEN to get a good bounce. As a consequence of the weak YEN, the Japanese market has been extremely strong, EWJ, NKY, SN, PC, TM. So this could be an opportunity to short a counter trend reaction in Sony (SN), Panasonic (PC) or Toyota (TM). Long term though it will be a opportunity to get long after the reaction.
Broader markets (US, Europe)... Could decline on the Yen Carry Trade disadvantage as well? I was under the assumption that the low yen was a function of some pretty heavy short term loans.
Another assumption here would be that short interest (across the board) would suffer (decrease) as the yen carry could cover some of the cost to barrow shares (in the past)?
Maybe I'm just dreaming...
There is a ton of retail money pumped into the market right ow and a ton of cash (from retail) still be parked waiting for investment. I think this has helped to maintain this rally in the equities market. There is pretty stubstantial head winds on the Macro side right now.
10% correction by end April.... Invest till May then go away...
I think we are seeing the start right now.
How that plays out with SKUL... this stock is disjointed from the broader markets (some would say it's because of the micro-cap size, negative market sentiment and manipulation)... Aall those thing are probably true...