Wild Wednesday – Japan Drops 28Tn Yen Stimulus Bomb Ahead of the Fed

What a morning already. 

Japan's PM, Shinzo Abe made a surprise announcement of a 28 TRILLION Yen stimulus package just two days ahead of the BOJ meeting.  28Tn Yen is "just" $265Bn but Japan's economy is 1/4 the size of the US, so think of it as a US $1Tn stimulus – that is impressive by any measure! 

As you can see on the chart, it's been a muted reaction by the Yen so far as we wait for details on Abe's plan, wait for our own Fed to make a decision (2pm) and then wait for the BOJ's decision on Friday so a lot of waiting is in our immediate future and, meanwhile, let's talk about yesterday and yesterday's FANTASTIC call to short the Futures at:

  • 18,450 on the Dow (/YM), low was 18,311 for a $659 per contract gain
  • 2,165 on the S&P (/ES), low was 2,154 for a $550 per contract gain
  • 4,650 on the Nasdaq (/NQ), low was 4,650 for a $200 per contract gain

The Russell never went below our shorting line at 1,205 but we ran up to 1,213 and I called a short there in our Live Member Chat room and we caught a dive back to 1,205 for an $800 per contract gain on that one – TWICE! 

Today we're looking much higher with the Russell over 1,215, Dow 18,450 again, S&P 2,167.50 and the Nasdaq is testing 4,700 (/NQ Futures) thanks to an upside surprise from Apple's earnings report.  AAPL is a key long at PSW and yesterday morning I said to our Members:

AAPL/Selozi – Talk about stupidly undervalued stocks.  I hope AAPL misses so we can double down on our longs but expectations are so low, I'm not sure they can miss them.  36 analysts cover this stock and they are expecting just $42Bn in sales, off 15% from last year's $49.6Bn.  Will be very interesting to see what actually happens but the stock is already down 30% from last summer's $130, even though they


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