Week In Review: Nikkei, Yen Went Wild, Monster Moves For Bonds

If you slept through this week, it would appear to be relatively uneventful. Nothing could be further from the truth.


Energies and non Dollar Currencies performed well and the Equity markets were up small.

Metals were weak and the Nikkei pulled back a bit while Nat Gas got hit on a bearish inventory report.

That characterization would be like saying Crime and Punishment is an old book about a student in St. Petersburg. It kinda glazes over the details right? There is plenty of nuance to the week that was; including but not limited to the most intense spat of Currency volatility since the Flash Crash, highest Bond vols in over a year, the S&Ps breaking the 50 day MA for the first time since the Fake AP Tweet and before that the Fiscal Cliff/Sequester selloff at the end of last year.


Bonds (10 year yield) had monster moves

The Nikkei and the Yen went absolutely wild

The Nikkei traded 16,020 on 5/22. It traded 12,425 yesterday. Smooth 22.5% in about 2 weeks.

And the Currency - the most volatile since the Flash Crash.

The volatility didn't end there. The Grains saw big moves - Bean, Oats making multi month highs. The Euro, Pound, Swiss and Aussie moved like penny stocks.

The VIX traded over 18 for the first time since the Italian elections.

Silver traded to the lowest levels since October of 2010. I've been bullish and I'm troubled to see a close below $22, but Silver is not a market for someone on blood thinners. People call it the "Devil's Metal" for a reason. Interestingly/ironically - today Silver traded back to where it popped to on the week Bear Stearns went under in 2008.


I'm admitted confused by these markets. There have been massive ranges, confounding divergences, huge spikes in implied vols, considerable moves in flat price, but yesterday afternoon market pivoted from panic to complacent.

They sure are amazing aren't they.......sometimes you're the windshield and sometimes you're the bug.

Just don't fall asleep at the wheel.

I'm still very bullish on the Blackhawks.

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