Stress Indicators: The end of the Bernanke put? Stress in Japanese rates

The end of the Bernanke put? Stress in Japanese rates

This week look at Stress Indicators indicates a bullish stock market which is overbought - but also significant stress in most fixed income market - prime among them Japan - The one place where rates should be tumbling down due to BOJ buying 70% of all new issuance - The BOJ at risk here? I am doing Steen's Chronicle later today which will include a look at Japan's experiment.

The question we need to ask was raised by my friend Mr. E: Is Japan showing us the end of Bernanke's put?

Safe travels,Steen

Another interesting chart is the US Index - one of our main long-term strategic positions:

In the fixed income space - and despite a recent sell-off our indicator would says we are entering LOWER YIELD phase rather than the opposite:

 In the land of economic indiactors, it seems we are seeing some late Q2 relief through lower Gasoline prices but also via Dr. Copper - the Phd in Economics:

The potential for lower EURUSD = towards 1.2600

Finally, just to show how BID the stock market is and has been: 93% of all stocks now trades above its 50-MA - this period may be one the longest period observed  - telling you something about the momentum in place.

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Economist

 

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