Shyon
12-18 18:48
I see a BOJ tightening causing a temporary volatility spike rather than a sustained unwind. Much of the yen carry trade risk is already priced in, and unless we see abrupt yen strength or disorderly moves in global yields, this is more of an adjustment than a liquidity shock. Clarity from the BOJ should help stabilize markets.

For a delayed Santa Rally, I’m not going fully defensive or all-cash. I prefer keeping dry powder while selectively buying dips in quality growth and AI names. In a later, narrower rally, stock selection matters more than broad exposure.

BOJ-driven liquidity fears dominate near-term headlines, but earnings and Fed policy remain the real anchors. As long as corporate results hold and the Fed stays supportive, much of the BOJ pressure can be absorbed. Santa may arrive late, but cancellation isn’t my base case.

@Tiger_comments @TigerStars @TigerClub

Record Options Expiry Meets BoJ: Can S&P 500 Close Higher Tonight?
Wall Street faces an unprecedented “quadruple witching” this Friday, with record options expirations tied to roughly $5 trillion in S&P 500 exposure and another $880 billion linked to single stocks. The Bank of Japan raised its benchmark interest rate from 0.5% to 0.75%, in line with market expectations. This move lifted rates to their highest level in 30 years and marked the BOJ’s first rate hike in 11 months, since January 2025. ----------------- Will the bull hold 6800? How much effect would BOJ rate hike lay on US stock? Can Santa rally be assured tonight?
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