This is a post about the BOJ buying Japanese stocks (specifically: ETFs). source: https://www.bloomberg.com/news/arti...ps-up-with-record-purchases-of-japan-s-stocks It’s been a bad year for the Japanese stock market. Without record purchases by the Bank of Japan, it could have been even worse. The central bank spent 833 billion yen ($7.9 billion) on exchange-traded funds tracking the country’s shares last month, the biggest amount in data stretching back to late 2010. In the first quarter, too, it bought more than ever before. Haruhiko Kuroda’s bank is now ahead of schedule in its goal of spending about 6 trillion yen a year on ETFs. It used almost a third of its annual budget in just the first quarter. The central bank has been largely consistent in its purchasing habits, tending to buy on days the Topix falls in the morning. The central bank has spent $183 billion on Japanese ETFs, with 30 percent of the purchases coming last year. It owned 74 percent of the market at the end of October, up from 65 percent a year earlier, according to Investment Trusts Association figures, BOJ disclosures and data compiled by Bloomberg. Not that long ago, many investors expected the BOJ to join the global trend toward stimulus tapering by reducing ETF buying this year. That came after the Topix and the Nikkei 225 soared to their highest levels in a quarter century. But then the market slumped, and the situation changed. "Obviously, the BOJ has to stop buying at some point," Oguchi, chief executive officer and president of Franklin Templeton Investments in Japan, said. But "I think we have to wait until the Tokyo Olympics” in 2020, he said. “The BOJ won’t change their policy at least for another two three years." “Of course, they won’t cut back," Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management Co. in Tokyo, said. Like the others, he doesn’t expect the bank to increase the target, either. "The BOJ would buy more if they could stop the market from falling, but it knows that it can’t." That last quote makes me question, why buy at all?
I mentioned anything under 2600 is a strong buy zone. It is still an attractive buy zone from 2600 to 2650
From a fundamental perspective, that "tweet-a-holic": is simply creating buying opportunities for institutional traders. If we were at 2850 right now, some people would complain but many would think it is par for the course. The SPX at 2600 or 2550 doesn't make any sense from that perspective.
But at this point, everything is pointing towards the 2700 level as the key level from multiple perspectives
Seems to me that the market always broadcasts big moves. I suspect some combination of rates, inflation, earnings misses, labor costs, regulations, tariffs etc will require a re-assessment of valuations and this is the start of an adjustment.
you guys see the SPOT shenanigans today? Nothing like running up a stock before its even public..... then no shorts available :-(
WTF?....went on the porch to exercise and you guys pump up the S&P 35 points?...no more working out for me dammit!!
