Where is that cesspool of promised liquidity?

  • Kuroda-san doing a Mark Carney – delaying the promised stimulus that market sought after
  • Abe-san might take the helm next week to perhaps surprise market with a large stimulus package – part of his so called three arrows that have many many three arrows within (http://fortune.com/2016/07/27/japan-stimulus-shinzo-abe/)
  • It is easy to talk up further stimulus to fight deflation but the larger question remained if all this stimulus is actually working?
  • Stopping a patient bleeding is fine but if the blood banks runs out or prove ineffective the patient will eventually die
  • The introduction of QE happened in Japan since 2001 and yes we purposely BOLD IT UP (http://themarketmogul.com/brief-history-quantitative-easing/) ended in 2006 then restarted
  • See chart below but even Pokemon can’t help the Nikkei higher

Seasonality for (Nikkei)

NIKKEI 225 Index (^N225) Seasonal Chart

Seasonality for month of August (SPX)

August Forex Seasonality Sees USD & Gold Strength, SPX Weakness

Seasonality for month of August (Gold)

August Forex Seasonality Sees USD & Gold Strength, SPX Weakness

 

 

 

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