As you can see above, the Yen collapsed against the dollar today. I mentioned this morning on the chat that this looked like it would happen soon, but I didn’t think it would happen so soon or with such violence. Anyway, it was great for our YCS position and DXJ joined the party too.
Just for your information, Nikkei futures are up over 2.1% as I write this.
Based on the drop in the Yen, YCS had a great breakout move.
DXJ– Not only made new highs today, but it put in a bullish engulfing candle (bullish) and MACD turned up. Looks higher.
Stanley Drunkenmiller, the famous hedge fund manager, and one of the greats, thinks you get 16 months out of this Japan trade. I agree. It’s hard to stop the presses from printing once they have started. It will all end in tears (maybe two years out), but for now enjoy the ride.
Have a great night ans please check the P&L for any stop adjustments.