BOJ Yen Printing on Overdrive

If 50 trillion yen isn't enough, then try 80 trillion yen.  And triple those ETF buys.  The BOJ has gotten backed into a corner, Abe and the BOJ have taken a page out of the Fed playbook and resorted to manipulation of their asset markets and currency to prosperity.  It will work, if your vision of prosperity are higher stocks and higher bonds, with a weaker currency.  If your vision of prosperity is actual increase in the quality of life for the average citizen, then it is a massive fail.

While this is great for the Nikkei, I don't see much benefit to massive BOJ printing except for those short the yen.  The market is at a point where you have shorts under extreme duress and any bit of supposedly good news brings out a lot of short covering.  This is a lot of short covering driving this gap up.  I don't believe it is much new long buying here.  With short covering, usually it happens before the market opens, and once the opening bell rings, you get the cash guys coming into take profits on this kind of news.  I am short the S&P here in the pre-market.  Looking for a selloff in the morning.