Japanese Intervention Half-Life is About Half, Spain Regains Focus

If you read last night's post then at the very end you saw the Japanese additional purchases of 10 Trillion Yen to their asset buying program that sent the market and currencies (especially risk related) higher, you also saw the warning from me that Japanese intervention has a very short half life.

Here's how short in fact...

 ES (S&P Futures) rise just before midnight on the Japanese Central Bank news along with FX pairs like the EUR/USD, the yellow arrow is the European open, shortly after the European open, all gains from the Japanese additional easing and currency debasement is given back.

The same is true of NASDAQ futures.

Here's the EUR/USD that originally surged...

And the Euro gave back all gains and then some as the circular logic of one Central Bank easing with QE3 leads to another and another Central Bank Easing to protect their currency and exports and in the end you're essentially back to square one, so why not worry about something that really matters and today that just happened to be Spain.

On the back of a strengthening dollar, here's what happened to Crude futures...


 A collapse on a negative divergence as well

And gold... Again, the Japanese intervention is discounted and over.