“Just an update for you, some disturbing news has leaked out this week. Machine tool builders have put out blow out [lists] to all sales persons in the USA, not sure if world wide. Mori Seiki list has 600 to 700 machines on it WOW!!! never have i heard of such a huge list by any one Builder. Not sure what they see coming but it can’t be good.”
My comment from that post: “Mori is a big builder and when the big builders start blowing out it goes right down the food chain.”
Concurrent with this NFTRH had been watching Machine Tool builder Fanuc ever since projecting its upside in Q4 2014 (due to BoJ’s Yen eroding monetary policy that would help exporters). We watched Fanuc in particular because it has been getting hyped (on Robotics) by certain suits (i.e. financial types) who have probably never set foot on a manufacturing floor in their lives, let alone operated a Machine Tool. But also, I know first hand that Fanuc is a quality builder and I like a good and progressive company as much as the next guy.
Is Japan Zimbabwe? How preposterous: Japan is an advanced economy that cannot possibly suffer the same fate as Zimbabwe. Right? Or could Japan get hyperinflation? Below I explain why Japan, and with it investors’ portfolios, might be at risk.
The other day, when I was on a panel discussing unsustainable deficits in the U.S., Eurozone and Japan, the risk of inflation and Zimbabwe style hyperinflation came up. When asked about the difference about Japan and Zimbabwe, I quipped that there isn’t any. My co-panelists were all over me, arguing Japan is different. Notably that Japan could not possibly go broke because, unlike Zimbabwe, it’s an advanced economy. The argument being that Japan produces goods the world wants.
Is it just me or is this chart of the Japanese Yen sneakily bullish, or at least working on a potential bottom of some sort? We’ve been following Yen vs. Nikkei in NFTRH for months now and the NIKK has got a bearish looking pattern in the mirror to the Yen. A break of the neckline would target 101.
Over in the Land of the Sinking Currency the Nikkei popped above resistance yesterday while its whipping boy in the mirror, Johnny Yen, also showed strength and held support.
One signal is real and one is Memorex. The Nikkei and Yen correlation is likely to go back to inverse before long as policy makers attempt to use inflationary manipulation of the currency to spur asset market prices.
NFTRH has been noting for quite some time the mirrored Symmetrical Triangles in Japan’s stock market and its currency. We noted that Sym-Tri’s being continuation patterns, Nikkei should break up and the Yen should break down if the Tri’s hold to form… √
Here is a busy chart from recent NFTRH showing Uncle Buck in a Bear Flag after the big FOMC breakdown, Euro breaking out, Yen broken down from a Symm-Tri and two commodity currencies hanging around at or below resistance.