1/2/19; AAPL flash crashes -8% after the closing bell on lower guidance. Apple throws a wet blanket on markets to begin 2019. The announcement sends shockwaves around the world. CEO Cook blames the trade wars and slumping iPhone sales in China. The year is off and stumbling.
1/3/19; In Asia trading, Apple supplier Samsung Electronics
loses -3% and SK Hynix collapses -5%. In Europe, Dialog Semi flash crashes -9%.
AMS flash crashes -21%. ST Micro -7%. Siltronic -4.3%. ASML -3%. Logitech -3.5%.
The weakness in Apple and its suppliers creates concern over the status of the
luxury goods buyer. Apple iPhones have become very high-priced. LVMH tumbles
-3%.
A flash crash event occurs in the dollar/yen currency pair collapsing
from 108 to a 104-handle then recovering back to 107.61 all in 7 minutes. The
Apple news creates sogginess in the US dollar index. At the same time, global
investors are seeking safety in the yen. Japanese markets are closed so the
lack of liquidity exacerbates the flash crash. Japanese retail investors are
also blamed. The trade disputes and weakness in China’s economy also compounds
the flash crash.
The dollar/yen pair plummets from 108.80 to 104.10 the
lowest number since March 2018. The lower pair corresponds to a weaker dollar
and stronger yen. The yen has strengthened nearly 7% over the last few days.
USD 96.56.
The TRY-JPY pair is at 19.802 experiencing a wild 4.3% price
move a four standard deviation plunge on the chart. S&P futures are down
-38 points. The AUD-JPY pair is at 74.90 with a 1.5% move. Professional traders
take advantage of the low liquidity aiming at and hitting the stops creating
the market mayhem.
If the dollar/yen pair drops towards 100 reflecting the
ever-stronger yen, the BOJ will have to provide more stimulus. This is a
problem since the Bank of Japan has shot all its bullets. It has already bought
up nearly all available assets including bonds, stocks and ETF’s. Japan is
failing at reinflating their economy.
The BOJ, Fed, ECB and other global central bankers are sick
souls. Over the last decade, they have succeeded in making the wealthy elite
class more filthy rich while selling-out common folks that do not own any
stocks. Japan may be headed towards a financial crisis that could trigger
global contagion in 2019.
At 6:16 AM EST (11:16 AM London; 12:16 PM Frankfurt; 8:16 PM
Tokyo), the dollar/yen is at 107.62. USD 96.61. S&P futures -40. VIX 26.04.
10-year yield 2.63%. DAX -1.2%. AAPL -9%. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
NOTE: The chart above is provided by TradingView and annotated by Keystone.
[The major flash crashes and flash spikes from the historic May 6, 2010, flash crash to present are chronicled in the Flash Crashes, Fat Fingers and Computer Glitches Oh My! 3rd Edition available from Amazon]
NOTE: The chart above is provided by TradingView and annotated by Keystone.
[The major flash crashes and flash spikes from the historic May 6, 2010, flash crash to present are chronicled in the Flash Crashes, Fat Fingers and Computer Glitches Oh My! 3rd Edition available from Amazon]
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