Gersh; RE:" Yen Song "
>the Yen tonight will sing a song...
How very nicely said, Gersh.
>Don't know if it will be pop or blues...
TYX.X index reversal now almost certain.
JY98M Japanese Yen Futures at the very top of its DownTrend channel - a Doji candlestick -- indecision; a meeting of opposing forces...
...EWJ - the NIKKEI 225 WEBS - is at the same place, precisely correlated with the JYen Futures and TYX.X 30-Y Treasury cycles.
We should short EWJ @ 10-1/2 +/- 1/8 STOP 10-3/4 and sell May PUTs on USTreasuries @ TYX.X = 59.66 : If the NIKKEI busts out, we'll cover EWJ down -1/4 and let them "put" the bondz to us at strike price minus the cost of the PUTs we sold. If the NIKKEI falls as expected, along with a rise in bonds, we'll cover EWJ @ 9-7/8, up +1/2 and close the USTreasury PUTs when TYX.X hits 58.86, +.800 basis points.
>Whatever it is should sing the song for Wall St. Friday.
(inverted of course)
BKX.X Banks and XBD.X Broker-Dealers may be correlated to this relationship that you've found too, Gersh. If they rise with the LongBond's rise and JYen's fall (or vice-versa) -
as XOI.X and OSX.X respond to CL98M Crude Oil Futures - we'll have us an arbitrage machine involving the JYen Futures, the NIKKEI 225, the USTreasuries, and interest-sensitive stocks within the BKX.X and XBD.X sectors (^_^)
-Steve |
