Pre-Market... Developing as Expected

There's no glory in calling an event that you have read about historically and seen in your own lifetime happen again and again, anyone who calls this event like I have are not ahead of the curve, they are simply paying attention, they aren't gurus, they simply know the historical trend, they aren't smarter than the crowd, they are just more willing to recognize reality than get caught up in temporary, however impressive, distortions that can't go on forever-no bubble-even F_E_D induced, can go on forever.

I have spoke many times about how I followed the declining currency market, the carry trades and the major changes in the Yen that will change this market, almost all have something to do with the F_E_D backing out of policy, but in a quick search this morning I found one of those articles when I was tracking currencies, suspecting there was a change in the making, you may remember these posts, they all looked the same-for newer members there were several a week as we could see the early changes in the trend before anyone else (not, "could recognize them, but...) was willing to recognize them.

Here's an example...  "Currency Wars" Wednesday Feb. 13, 2013

As for the two-paprt article dealing with the $USD and just as important, the Japanese Yen, "A Currency Crisis" I have place permanent links under the link section at the top right of the member's site. I spent 10 hours researching and writing these of April 14th, 2013, they are just as valid now as they were then and just as important; if you haven't already, I'd read them.

Here's where you can locate them...

Overnight for the second day in a row, as I have maintained since writing those articles, it seems the Bank of Japan, BOJ, has lost control with the most ambitious QE program ever. Overnight Japanese 5 and 10-year JGB futures (like our Treasuries) have fallen at the fastest rate since 2008 during the Lehman crisis. The fact they are trading like this and were halted were what I said in the articles would be the signal that the BOJ and PM, Abe's ambitious plan to halt 2 decades of deflation with massive QE, would be a signal for failure. Only the Yen moving temporarily above $100 has allowed the Nikkei to perform well, it is irrelevant, the JGBs are what to watch.

Yen short term and slightly longer term, you've seen the 4 hour chart, the move down in the Yen is temporary, when it moves higher, watch out across the globe.

 Yen 1 min overnight...

Larger Yen 5 min trend...

Index Futures overnight...

ES not able to fill the gap, more importantly...

 As you can see with the longer TF (r2K ) The gap was not filled, but as I suggested, any move in to strength is being sold.

The exact same happened with NQ-and ES its just the histories aren't long enough.

I'll bring you more after the open, but that's what pre-market looks like thus far, we will see the normal Monday morning volatility I'm sure to run out weekend warrior orders and stops.