Yen Based Carry Trades Continue to Move in Lockstep with the Dow

Japanese and Chinese markets were closed yesterday and will remain closed tomorrow. With the Dow setting another record high, yen crosses which are the carry trades have continued to perform well. Not only did the Dow post an all time high today, but the Nasdaq also hit a 6.5 year high while the S&P 500 topped 1,500 for first time since September 2000. The rally in US stocks is not giving up and if we end Friday strongly as well, the Nikkei could gap higher Sunday night.