Morning Call: Yen dives, Gold sold, Stocks drink kool-aid

Energy

Overnight

UPDATED 8:05

Markets resumed their Monday and Tuesday rallies as it appears Wednesday was a break and assessment. Stocks are up but less so than during the initial rush of Monday. The Yen continues its slide due to coming stimulus. The GBP is firmer on UK political stability. The Euro is stable on ECB talk allaying Italian banking worries. Markets are pricing perfection in Japan, relief in the Continent, and Fed Confidence in the US. Gold is lower on more risk off perception against all currencies except the Yen where it is up- Soren K

Headlines

UK IN SURPRISE HOLDS INTEREST RATES UNCH: GBP UP 2%, GILTS DROP- more HERE
SCHAEUBLE: NO NEGATIVE FALLOUT FROM ITALIAN BANKS- problem solved, can we short banks again?
GERMAN BONDS WITH NEG YIELD ISSUED FIRST TIME EVER- ecb now accepting corp bonds as collaterol to loan banks cash to not collapse
OIL: NORTH SEA TRADERS HOARDING MOST SINCE 2009- ENERGYVOICE- hoarding implies bullish, it really means supply glut
USD/JPY ABOVE SPIKES ABOVE 105- the stimulus better be a good one- SEE CHART BELOW
Bernanke steers Japan to Helicopter money
S&P: VENEZUELAN RECESSION TO HIT 7.5%- bernie sanders endorses hillary
TESLA ENDS CAR BUYBACK PROGRAM- ZH- elon musk is a con man and taxpayers should understand why. look for "Musk Oil "report here today
CNN: FEAR AND GREED INDEX HITS 86%- gordon gekko nods approvingly
FBI AGENTS DISCLOSE UNUSUAL NDA IN HILLARY CASE- promises made after acquittal

In Focus: Japan and Easy money, some perspective

The rally seen the last 3 days has been seen as a saving of the Nikkei. We plead with you to ignore the cheerleading headlines and look where stocks are for the year in japan. Remember, Japan was first to fight deflation with easy money years ago.

Current stimulus being discounted- with appropriate comment by David Ingles

But For 2016- doesnt even get the Nikkei back to unch for the year

Gold- is taking it on the chin with perception ofit as a safe haven risk off asset. We have and continue to say it is no such thing. It is money. So we say good riddance to those buying it like it were some mattress. It is a currency with a small float. Hot money cannot pile in and out of it and think it is safe. Buying the KIWI would have same effect. Buy and hold as a hedge against continuing paper money debasement is what we recommend.

FOLLOW THE YELLOW ARROW- lose the hot money and Gold will run to $1400