Wednesday, October 2, 2013

The Yenbone's connected to the...

While participants take cover this morning in the deep waters of Apple, this year's quantitative cocktail found in the yen - has been lit. Since making a high last September, it has led moves in the precious metals sector as the US dollar is bought or sold downstream. 


Click to enlarge images
The immediate result of which has been a sharp underperformance by Japan and the Nikkei - relative to the SPX. 
The early news with respect to the yen's immediate collateral damages abroad is the banks (BKX) continue to hold support, albeit precariously ~ 62.  
While we certainly would not expect a breakdown of like proportions, the comparative serves us both ways as a contrasting mirror to a specific momentum pattern's suggestion of a significant reversal. 

So far so good - as the BKX holds the line. 
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"The power of the suggested is much greater than the statement of reality" - C.W. Mundy