October 12, 2018 at 06:16: Dow Jones down 545 points yesterday as well [from Rikio Shima's newsletter]
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There is circulating news worrying about the impact of consecutive stock declines. To what extent is the exchange market affected? In the investment newsletter "Shima Rikio’s Practical Real-Time Trades" provided by GogoJungle, Mr. Shima writes the following.
U.S. stocks fell again yesterday, with the Dow closing 545 points lower at 25,052 and the Nasdaq down 92 points at 7,329. However, the reaction in the currency market has beenlukewarm. The AUD/JPY closed near 79.80 yen, higher than the Asia session yesterday. Perhaps there are many short positions in the Australian dollar.
President Trump harshly criticized the Fed, but the market did not pay much attention. The dollar rose slightly as CPI came in below expectations (dollar buying on inflation-rate decline), but the move was only momentary.
We will meet Mr. Xi Jinping in November, and the forex report did not designate China as a currency manipulator. It seems the stock decline surprised them, and they are trying to patch things up. They cannot let the market collapse before the midterm elections.
I spoke with various contacts, and it seems this stock decline is aimed at this period when there is no share buybacks by the company. In other words, a "limited" game, and demand will come in from next month. In that sense, there is likely a bottom somewhere this month.
‘Shima Rikio’s Practical Real-Time Trades’ (Rikio Shima)Quoted.
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