U S _ Japan About to DUMP $100's of BILLIONS in DOLLARS—MELTDOWN Imminent!

What if I told you that Japan was about to sell hundreds of billions of dollars into the market to prop up the yen and that they have the full backing of the Federal Reserve and the U.S. Treasury? Here's the frightening part. The last time Japan dumped $100 billion back in 2024, stocks came crashing down as traders were forced to rapidly unwind their positions. Now stay tuned because this intervention is threatening to unwind trillions in global carry trades that are going to send stocks crashing overnight at a time when investors are overly bullish and have been buying stocks at record levels. But not to worry, for those who want to protect their money and profit on this massive coordinated currency intervention, I'm going to show you exactly what you need to do right now. Speaking of profit, on Christmas Eve we alerted our CTA Timer Pro subscribers to buy South Korean stocks and that ETF is now at 25.39% in just 20 days and continues to surge higher. We've rolled out some major improvements to our trading system that are driving bigger win rates, higher returns and smaller drawdowns, but you need to lock in before the price goes up. Grab those links in the description below and use the coupon code for your free 30-day trial. Stay tuned to the end of the show for more information. Now let's dive in because this could send stocks crashing 25% or more overnight and you don't have much time to react. On Friday, the end stage is big as one day surged since August, jumping nearly 2% against the dollar to around $155.70. And the jump in the U.S. session came as traders reported that the Federal Reserve Bank of New York had contacted financial institutions to ask about the yen's exchange rate. Wall Street saw those inquiries as potentially laying the ground for Japan to intervene to prop up the yen, perhaps even with the U.S. government joining in. In fact, the last time the U.S. did a rate check back in 2024, shortly thereafter Japan dumped $100 billion U.S. dollars into the market to defend the value of the yen against short sellers. And the reason the U.S. is encouraging this intervention is U.S. Treasury Secretary Scott Besant said this week that he had spoken with Japan's Finance Minister Suzuki Katayama about the sell-off in Japanese debt, adding it affected the Treasury's market, giving Japan the green light to move forward as U.S. rates tend to fall when the yen rallies. But the big risk right now is that stocks have immediately corrected in 2024 against this move and have been again in 2025 when Japan threatened intervention. And what this is setting up for is a 25% or bigger crash in stocks at a time when retail investors are all in. Now let's dive in because first I want to understand why the U.S. is actively engaging in talks to weaken the dollar. Ed Al-Husseini, the portfolio manager at Columbia Threadneedle Investment, believes that it is possible that the U.S. Treasury is nervous about a spillover from JGBs to Treasuries and is studying currency intervention as a stabilization tool. And he's right. It's all about rates since President Trump has made it clear he wants borrowing costs to go down. And there happens to be a very strong correlation between Treasuries and the Japanese yen to U.S. dollar spot exchange rate. This chart of the yen to dollar spot rate in blue versus 10-year Treasuries in red proves it. You can see the close relationship, especially after 2022, indicating that if the yen were to rally against the dollar, the Treasuries would likely decline. And that's why it's going to be a coordinated move. Bipin Rai, the managing director at BMO Capital Markets, nails it. The fact that the New York Fed was asking implies that any potential intervention in dollar-yen won't be unilateral. So what I want you to see here is that the U.S. is willing to let the dollar weaken to bring rates down. But stay with me, because what it's going to do is trigger a massive correction in the stock market. Now before we get to that, I need you to understand what's going on in Japan and what's causing the yen to weaken. And one of the big issues? They're afraid to raise rates. The Bank of Japan left its policy rate unchanged Friday at 0.75%, as it takes time to assess the impact of last month's increase and awaits the outcome of a snap election that may affect the nation's spending plans. So the issue here is the bond market has been clearly telling the BOJ they need to raise rates, but they're afraid to do it because it could crash both the bond market and the economy. Governor Ueda is in denial. While Ueda suggested that overall inflation will weaken below 2% soon, he left it open for the possibility of an earlier rate hike. Now this is more talk than anything, as he's hoping inflation cools off so he doesn't have to hike. The reason why? Because rate hikes end every economic expansion. And after dealing with decades of deflation, Japan is desperate and nobody wants to take the blame for ruining this growth streak. But as this next trend of the federal funds rate in blue versus two-year treasury yields in red shows, is the market leads the policy rate. And when borrowing costs get high enough, you can see it staves off demand, causes a recession as you can see in those gray bars, and that is what the Bank of Japan is afraid about. Now stay locked in because I've got some charts you need to see that validates everything I'm showing you. But I first need you to understand why the markets think the yen is going to continue to weaken. Because inflation is likely to keep rising despite what Ueda says. Takeuchi has pledged to suspend the 8% tax on food purchases and non-alcoholic beverages for two years if she and the LDP triumph in next month's polls. And with an approval rating over 60%, the odds of the LDP winning right now are high. And what this is going to do is free up cash for consumers, and we know what that means. The proportion of food spending within overall household consumption came in at 28.9% November, that's the highest for that month since comparable data became available in 2000, suggesting, as I said, that this tax savings is going to immediately find its way into the real economy. And what that means is wages are also going up. And Governor Ueda said that the mechanism linking wage growth and inflation is likely to be maintained even though the data showed that hourly workers saw their pay rise by 4.2%. That's the fastest gain since February. And what I want you to understand is where wages go, inflation follows. The proof is in this next chart of U.S. data as we look at the consumer price index in blue versus average hourly earnings of production and non-supervisor employees in red. And what I want you to see is very clear that periods of rising wages leads to rising inflation. So now you see the issues here. Fiscal stimulus is leading to wage growth and higher inflation. JGB yields are rising in anticipation of higher inflation, but Governor Ueda and the BOJ don't want to raise rates out of fear that they're going to be the ones to break the economy. So as rates rise, then the Yen weakens and inflation continues to go even higher. And that only leaves one solution, that's to intervene in the currency markets and that helps the BOJ strengthen the Yen and brings U.S. Treasury yields down. Now let's dive into those charts because this is going to have a direct impact on your net worth unless you act fast. And here's the proof. Let's take a look at this first chart of the Yen to dollar spot rate because what you're seeing is it's breaking down. Now I want you to notice how price moved below the 50-day moving average. That's the blue line. And if it is sustained, when price is below the 50-day, it's a bearish signal that suggests prices are going to further decline as they did in early 2025. Now here's one key thing you can do. When price breaks down below the 50-day, bounces up and reconfirms the bottom side of it, that is the golden sign of a bearish move and tend to see from there, price falls. Now the correlation is completely bearish here. Now there's an inverse correlation between the S&P 500 in blue and the Yen to dollar spot rate shown inverted in yellow. And this is a key point that I really need you to understand because what this suggests is a major correction is imminent if there is a large intervention and we see the Yen rally and the dollar drop in value. So to put this in perspective, in early 2025, we saw the spot rate decline and this caused a 25% drop in stock prices. So what we're seeing here is the topping pattern is starting to become very obvious. Now I've been talking about the Wyckoff distribution pattern that is visible in the NASDAQ 100. I know many of you think I'm completely wrong here, but after two days of near record inflows from retail investors, tech stocks were only up a small amount. And if I'm right, the pros know what's about to hit. And there's a reason why I showed you that hedge funds are lining up their short positions because what you're facing here is a big move down in stocks that the pros want to profit on as retail is now all in. So let's talk about how you too can profit from this next big correction. And now that you've seen the evidence of why a joint currency intervention between the US and Japan is highly likely, the reason why? President Trump has indicated he wants a weaker dollar and lower yields, while Japan, they want a stronger yen to avoid raising rates. This accomplishes both, but the risk is it unwinds the yen carry trade, which is why the Wall Street pros are building up short positions. Now, if you think this intervention is going to trigger a massive correction, it's not too late to act, but the clock is ticking. You want to diversify the banks, technology and cyclical stocks quick, and you want to move into defensive like utilities, healthcare. Look at dollar costs averaged into gold and silver. We see they perform well when bank stocks drop, but due to the volatility, be careful about going all in. Now for the pros, I'm talking only of those with the risk tolerance experience in the stomach. You may want to look to be tactfully short to banks and big tech here because I want you to understand this has all been propped up by the yen carry trade. Jeffrey Gundlach, the bond king, giving us unprecedented advice, suggesting a minimum of 20% of your portfolio in cash. And now you can see why if we get a 25% or 40% correction like Moody suggested, you're going to need the cash to buy the dip. Instead of cash, consider short-term treasuries. And I've been talking about looking to be tactfully long the yen only if it starts to rally. Now, as far as the long bond, you want to hold off for now. But as you've seen, if the yen to dollar spot rate declines, it means yields are likely to go down. And that means if that happens, you want to load up and big. Now the banks, they believe it's coming because they've been buying the long bond by the billions. And right now it's price is to your volume profile. So now you've got your roadmap for profiting on the yen carry trade blowing up, which is the biggest contrarian trade in 2026. Now, speaking of turning risk into win, remember that EWY trade I mentioned at the top, it's up 25.39% in just 20 days and breaking higher. Now let's take a look at how we do it and how you can swing trade your way to big profits in 2026. Because one of the key things about this trade that we showed our subscribers, it had an expected win rate of 87%. Now, how did we know that? What do we do? Well, each and every day we look at the machine positioning across the broad equity, bond, currency, and commodity markets. And what we're simply looking to do is position our subscribers ahead of a big wave of machine buying and get them out before the machine sell. Now these machines trade based on threshold levels. So what we've gone through and done is fully optimize them and backtest them. So we know which threshold levels give us the best win rate and the highest potential for return. And this is the edge you get with a fully optimized strategy. You get higher returns, higher win rates, and a smaller drawdown. Now, it's so easy to use every day. All you need to do is log in, scroll all the way down to the bottom. And what you're going to do is you're going to get an update on our existing trades. You're going to get all the recommended trades for that day, plus full risk control levels. In addition, you're going to get every optimized trade on the long and the short side generated by trading system that day. So you get all the signals. You get my opinions on the best trades. You get full risk control levels, a tracking of all open trades and returns, a weekly update. And here's the best part of all, you get a 30 day free trial. So whether you're brand new to trading or you're an experienced trader, we're so confident that our system is better. We want you to try it for 30 days on me. All you need to do, grab those links in the description below and use a coupon code for your free 30 day trial. And with that, I'm Steve Van Meter. Thanks for watching. Thanks for being fans. Bye now.