FXWW News/USD/JPY

Macro fund behind the Nikkei sell-off

Our hedge fund insider @FXWW888 reported earlier that a macro fund was behind the sell-off in the Nikkei.

The last time we saw a big macro fund dumping assets we saw the USD/JPY fall by 10% pretty quickly. This is probably just a one-off flow after poor data from Microsoft earlier today spooked them a bit, but it’s always worth watching what the big macros are doing.

  1. If it was just unloading a position, why would they do it in a way that takes the Nikkei down 400 points? Even a fairly large position could have been unloaded in a more orderly fashion before the weekend.

  2. why wud they do it in a way that takes Nikkei down 600 points? maybe because last 2wk rise was based on light volumes, and it shows disprepancy with fundamental situation with economy, in particularly Japan’s , and generally Global

  3. Hardly ever would a fund even have such large position to move Nikkei by that much let alone be stupid enough to accept such market impact. Keep in mind that start arb programs would force the whole 225 names to be traded down in case someone just sold the futures alone. There must be much broader squaring of positions going on than just by a macro fund.

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