Yesterday Chinese stocks continued to sell off as government officials have made a series of recent moves to curb rampant equity speculation. The JPY crosses dealt a bit lower as traders looked to curb risk, but we did not see the type plunge lower that we have seen historically (reference the February sell off). Without any type of significant risk reduction materializing yesterday, today’s theme was continued strength in the JPY crosses as EUR/JPY traded to new all-time highs. The pair is facing some resistance into 164.50, where there are likely option related offers. The Shanghai Composite is again trading lower for the third day in a row, now down over 5% on the day. If we see a bounce in Chinese equities in the near term we could see another short squeeze higher in the JPY crosses. This would largely be due to those traders looking for the “risk reduction” trade, the selling of risky assets (i.e., carry trade positions) to lower portfolio risk and generate liquidity, covering their JPY cross shorts.
- #5,406
- Jun 5, 2007 3:18am Jun 5, 2007 3:18am
- | Commercial User | Joined Sep 2005 | 1,118 Posts
Open space
It's funny how different traders use different layouts for their charting studies. As someone how only has 3 moving averages in his charts, I find those ultra-complex layouts intimidating
- #5,408
- Jun 5, 2007 3:20am Jun 5, 2007 3:20am
Holy mother of Jesus.
It's funny how different traders use different layouts for their charting studies. As someone how only has 3 moving averages in his charts, I find those ultra-complex layouts intimidating
We leave no soldier behind.
- #5,410
- Jun 5, 2007 4:57am Jun 5, 2007 4:57am
- Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts | Online Now
No tech Yes Fundi 
05:48 Stocks rose after the midday break as investors speculated that the government will announce it won't introduce a capital gains tax for three years, and will set up a market stabilization fund
05:46 **CHINA** China's key stock index rose 3.5 percent, after plunging to its lowest in a month, on speculation the government will take steps to halt a rout that wiped out more than $400 billion of market value in less than a week.
05:48 Stocks rose after the midday break as investors speculated that the government will announce it won't introduce a capital gains tax for three years, and will set up a market stabilization fund
05:46 **CHINA** China's key stock index rose 3.5 percent, after plunging to its lowest in a month, on speculation the government will take steps to halt a rout that wiped out more than $400 billion of market value in less than a week.
- #5,413
- Jun 5, 2007 7:20am Jun 5, 2007 7:20am
- Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts | Online Now
- #5,414
- Jun 5, 2007 7:20am Jun 5, 2007 7:20am
- | Joined Aug 2006 | Status: BORED trader | 2,388 Posts
BAM BAM BOOM! -bravado
- #5,416
- Jun 5, 2007 7:25am Jun 5, 2007 7:25am
- | Joined Aug 2006 | Status: BORED trader | 2,388 Posts
BAM BAM BOOM! -bravado
- #5,417
- Jun 5, 2007 7:27am Jun 5, 2007 7:27am
- Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts | Online Now
- #5,419
- Jun 5, 2007 7:31am Jun 5, 2007 7:31am
- Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts | Online Now
- #5,420
- Jun 5, 2007 7:36am Jun 5, 2007 7:36am
- | Joined Aug 2006 | Status: BORED trader | 2,388 Posts
BAM BAM BOOM! -bravado