There are some really big moves taking place in the market.
Many investors may not even see these things happening, but
most were made aware of a huge shift when the Nikkei closed down
more than 7% a week or so ago.
Since that time the Japanese markets have continued to slide
from a high of 15,600 and change to below 13,000 at the present.
That is a move of more than 16%.
Today, and here is where I get all real time with this
insight, the trade has spilled over to the currency and we see
the USDJPY dropping in a big way. The move this afternoon
was so fast and furious that some suggested it was a "bust out"
A bust out trade is when a hedge fund or other large player
sees a forced liquidation of a position due to the use of
leverage on a position that has declined significantly.
Think of it as a margin call, but in a much worse way.
So with the dollar getting thrashed today, is the a way to
make some money? Of course.... but I am throwing that
question back at our experts here at Zacks to lead you into / or
away from some trades.
As for me, I will start with the idea of selling your DXJ if
you have any. The ETF is down about 4% right now and headed
lower. My thought process is simple, when there are bust
out trades, more are right around the corner. Hedgies don't
operate / trade in a vacuum, so look for more pressure on this
trade over the near term.
Anyone have any other real time ideas for this dollar
WISDMTR-J HEF (DXJ): ETF Research Reports
To read this article on Zacks.com click here.