Date: 6/14/2011 published
by: Jason Chan
Shorts got an unpleasant surprise yesterday (June 13, 2011) as TEPCO shares spiked up 25% after news that the Japanese government approved a disaster compensation bill which would help TEPCO pay compensation to victims of the Fukushima Daiichi nuclear disaster. In addition, the Tokyo Stock Exchange raised margin requirements which discourages short selling of TEPCO. [1]
As we have seen from other examples, margin rule requirements when implemented can cause drastic changes in the previous direction of stocks or commodities. For example the recent silver crash is due primarily to aggressive margin hikes on the part of the CME (Chicago Mercantile Exchange). Due to the timing of news from both the Japanese government and Tokyo Stock Exchange margin hike on short selling TEPCO stock (both being released on the same day), one might wonder if there were not some form of coordinated activity between the Japanese government and the Tokyo Stock Exchange in order to artificially prop up the TEPCO stock. Note that this is just speculation and not what the text of the Bloomberg article I am referencing says. In the case of the CME (Chicago Mercantile Exchange) the aggressive margin hikes recently on silver also seemed a little suspicious and in this case I also wondered if there were not perhaps some form of communication or coordinated activity with another entity (or entities) with a vested interest in keeping the price of silver down. I will let you guess who I mean. The official story in both the case of the Tokyo Stock Exchange or CME for why they increased their margin requirements is that their mathematical risk management model has been triggered and margins are hiked in a robotic fashion in response. I am not sure if I personally buy that line.
Source:
[1] Tokyo Electric Jumps by Record 25% After Short Sale, Margin Rule Changes, Bloomberg
Primarily my personal trading journal and thoughts/analysis on the financial markets (forex, futures, precious metals, inflation, stocks, economy, computerized trading strategies). I am not a registered investment adviser, and do not offer buy and sell recommendations of any given securities or asset classes. Please read disclaimer below at bottom of left panel.
Pages
- Home
- Bible Truth TV (Sermonaudio.com)
- Bear's Trading Room (Live Stream)
- Occupy Bilderberg 2012 (Live Streaming)
- Chicago Nato Protest (Live UStream)
- Occupy Wall Street (LiveStream)
- Occupy London (LiveStream)
- Occupy Chicago (Ustream)
- Occupy Chicago (LiveStream)
- Live Streaming Radiation Meters
- Japan Radiation Map / Nuclear News
- Free Stuff to Free Your Mind
- Reading List
- About Me
Search This Blog
Tuesday, June 14, 2011
Japanese government props up ailing TEPCO utility
Labels:
Blythe Masters,
CME,
Federal Reserve,
HSBC,
Japanese government,
JP Morgan,
JPM,
silver,
TEPCO,
The J Dimon,
The JP Morgue,
Tokyo Stock Exchange
Subscribe to:
Post Comments (Atom)
Dive in Silver Price a “Setup,” Says Sprott
ReplyDeletehttp://silverinvestingnews.com/7431/dive-in-silver-price-a-%E2%80%9Csetup%E2%80%9D-says-sprott.html