WEDNESDAY 10/7/15; BOJ Rate Decision; Oil Rally Continues; STZ; MON; 10-Year Note Auction

China markets are closed one more day and reopen tomorrow. The weak YUM earnings may create a sour mood in Asia. Trading is underway on the SPASX200 up marginally. The BOJ rate decision will be announced after the NIKK begins trading. Nikkei Index futures point to a flat open.

The consensus by analysts and economist is that BOJ Governor Kuroda will maintain the current monetary policy, however, the NIKK has rallied from under 17.0K to 18.2K in only five days a gain of +7.1% so traders are perhaps pricing in unexpected stimulus joy. 34 of 36 analysts say the BOJ will hold steady but over 50% expect more stimulus before the year ends. The central bankers are the market.

US futures are 














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The drop in volatility feeds the market upside. The VIX spiked to 53 and drops to an 18-handle in the last six days.

Russia increases military activity in Syria. Four war ships fire cruise missiles 900 miles (1450 km) over Iran and Iraq into Syrian targets. Things are becoming very dicey in the Middle East.