How can you not do well? Just sell it! Seriously, 15 BOJ interventions later and still going down. And to think, some people don't believe in trends...
The ACD Method
- Thread starter sbrowne126
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How can you not do well? Just sell it! Seriously, 15 BOJ interventions later and still going down. And to think, some people don't believe in trends...
Here is a chart of the Yen going back to 1970. This is the futures which is dollar denominated (Yen over Dollars).
Quote from Maverick74:
For those of you that care, USD/JPY trading at the lowest levels since WWII. This is pretty big news. Also pretty bullish for risk assets.
Here is the weekly chart.
That intervention that they tried when the Yen was at 82 was hilarious. Too bad I did not know about ACD then. I was stuck at 4hr candles or higher before ACD.
All of our economic growth is coming from inflation. The more inflation we have, the lower our dollar. Japan has had zero economic growth for decades and their currency reflects that. The more money we print, the lower our currency goes. Since stocks have a fixed amount of shares and the supply of dollars that's chasing stocks is increasing, it forces stocks higher. Keep in mind stocks are a spread trade like everything else. It's all relative value. AAPL is priced in dollars. If we price stocks in Gold, equities are sitting near the 2009 lows.
Let me put it another way, if you continue to lower the denominator in the equation, the relative value of the numerator goes higher. So when you see a SPY quote, what you are really seeing is a currency trade SPY/USD.
Never looked at it that way. Not bad, Mav, not bad.
I've got a lot more where that came from if you ever want to grab that beer sometime RCG....
I have to admit after studying these concepts for years the currency pair thing still confuses me, sort of like people talking about bonds, price vs yield. In general traders speak about the prices of bonds not yield. Let's say you are selling hamburgers aka MCD in Japan, when yen is repatriated you are getting less yen per burger, is this correct, I wish I had a more innate understanding of this. I think it is confusing because there is always that "relative value" as you say.