It's Supposed to Be a Non-Judgmental Intervention!

With rumors swirling about Japan's Ministry of Finance intervening in currency markets to support the free-falling Japanese Yen, let us get one thing abundantly clear: Intervening (or perhaps the mere appearance and perception of it) in global markets by government entities and/or central bankers is always from a position of weakness and desperation, not strength. 

Yes, the actions by The Fed and Treasury (and Congress, etc.) back in 2008/2009 may have very well stemmed the tide of the global financial crisis. But back then we did not have entrenched inflation and spiraling rates like we do now. Inflation is always going to be the kryptonite for the money printing banker. 

And with equities are finally getting the message, the most menacing risk is the domino effect: Selling begets more selling, which begets margin calls and liquidations, which sees the 0DTE gamblers get flipped on their heads and the action focusing on chasing downside puts as opposed to upside calls and gamma squeezes. 

On a personal note, I am taking a shot at big game hunting here: Long FNGD and betting the "FAANG" monsters finally crack. No guts, no glory, as they say. 

But I am in no mood for meekness.