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Mexican peso holiday & central banks are preparing for the worstThe week started quite well for the financial markets and with a huge relief for Mexico in particular. The point is that Trump decided not to impose 5% tariff on Mexican goods. The Mexican peso showed maximum growth over the past year. The Canadian dollar is below 1.33. Therefore a sharp decline in gold and other safe-haven assets against this background can be considered logical and logical. However, we would not advise relaxing. In fact, this is just one of the episodes. But in general, the picture continues to be rather precarious. According to analysts at Morgan Stanley, heightened market optimism is a mistake of investors. Global economic data is likely to begin to deteriorate. Accordingly, Morgan Stanley recommends selling USDJPY with a target of 105. We will continue to look for points to buy gold and Japanese yen on the intraday basis. About the Japanese yen. Yesterday, the head of the Bank of Japan, Haruhiko Kuroda, contributed a lot to yen sales in the foreign exchange market. He said that the Central Bank is ready to expand the list of monetary incentives, if it is necessary. Panicking and selling off the yen is not worth it yet. Well, the Bank of Japan is satisfied with the content of the monetary policy and the general state of the country's economy. Nevertheless, the general trend in the behavior of the leading central banks is pretty clear: all as one declare their readiness to act in response to trade war escalation. Recall, earlier "pigeon" comments were seen by the Fed and the ECB. And the Reserve Bank of Australia, so generally, lowered the rate last week. We would like to note rather weak data from the UK in particular GDP dropped by 0.4% m / m, in April ( the analysts had been expected a declining by 0.1% m / m).In addition, industrial production collapsed by by -2.7% m / m (experts predicted a decline of -1.0% m / m). It is not surprising that the pound was under downward pressure yesterday. Today we are waiting for data on the UK labor market, which might finish the pound. Well, we will see. Our trading preferences for today are as follows: we will continue to look for points for selling the US dollar against the Japanese yen, as well as the euro, oil sales and the Russian ruble, as well as buying gold.
Short
by Trade24Fx
Mori-Gumi wave 4 bounce possibleHello, This post is for me primarily. Here is a relatively undervalued equity paying 4% dividends and a PE of 5. Just another stock that I have decided to chart in my search for undervalued Japanese stocks. If you think US, EU etc treasury bond yields are low try a negative yield in Japan. A 10 year bond returns -0.05% (yes negative) and a 2 year -0.156 as at the 15th of May 2019. Compared to submitting yourself to a guaranteed loss, some low to medium dividend stocks must start to look attractive to the market. Anyway, my post is conditional; A long entry may want to wait until a small rise and then a higher low being set before entering. Making it back to the 0.382 fib level would be over 60% and the 0.236 fib level: 32%. Now, I may have counted wrongly and the 5 wave, wave C down has already terminated (it is rather hard to tell given the price action). In that case, expect higher highs.
TSE:1853Long
by flyinkiwi10
Ueki Corp - points to significant Japanese equity undervaluationShort term - short (but not in a position so just waiting), Medium + LT term long. Why? Well a couple of reasons. Despite the retraction in sales and profits in the construction industry in Japan as evident from Ueki's results there are some rather signs of value. I haven't even started a full accounting of undervalued Japanese stocks yet but can see that I will likely buy because: - Ueki's market cap, for example, is almost 63% lower than its net assets. Compared to U.S. equities that is comparably significantly undervalued. As at December 2018 the average S&P 500 price to book ratio was 2.8 (and this was AFTER the December price drop). Compare that to a P/B value for Ueki of 0.35. i.e. The Company could be liquidated now and would return significantly more than the current price per share to investors. - Investment Banks are entering long the market - seeing the market as oversold: www.cnbc.com I also read an article a while back that said Morgan Stanley is advising clients to exit US equities which will cause many to look elsewhere in the US and overseas for better value risk adjusted returns: www.investopedia.com I'm not sure if that is the one though, - Likely due to having been in a 30 year bear market, the Japanese equity market likely has, on average, less downside risk as compared to US stocks: www.bloomberg.com - My TA points towards a significant appreciation of the JPY vs the AUD, USD, and EUR. If this happens, any returns will magnified. Despite its significant debt load (230% of GDP+) Japanese citizens are willing to take a financial hit buying government bonds with negative interest rates in order to support their Country. - There are likely better, if not more undervalued, equities out there than Ueki. I feel encouraged to search for some deals. Thanks for viewing
TSE:1867
by flyinkiwi10
Possible buy zone Sumitomo MitsuiWhile 3.76% dividend yield isn't very high it is better than voluntarily forfeiting your money to the Japanese government in the form of negative bond yields (I apologise for my apparent lack of civic duty). Still, I expect a bit of a retrace before heading higher. This is 100% based on the chart and 0% based on fundamentals, although, I may be looking into the Company a bit more in-depth should it hit my price expectations. Short-term bearish, yet for form a medium term view based on fundamentals.
TSE:1821Short
by flyinkiwi10
Fudo Tetra Corp 1385Hello, I was just searching for low PE / oversold Japanese stocks. I am interested to see if this plays out, as it will be much better value sub 750 and well worth a look. Short to medium term short and medium term long. If you can snag some shares around 600 yen each and it retraces only 38% of the previous deep drop (2004 - 2010) - the you could go 5x easily. I am not sure chat would cause an increase like that at this stage as I haven't looked deeper into the Company than the chart but will if my targets are met. Thanks for viewing.
TSE:1813Short
by flyinkiwi10
Nikkei: Long term Buy Opportunity.The index is approaching the 20,970 1W Support creating optimal conditions for a long term buy towards the 23,000 Resistance. Nikkei is on an uptrend since the December bottom (1M MACD = 405.550, RSI = 50.348) and only a breach of the 20,360 Support can distress that. The Golden Cross (MA50 over MA200) may come later to confirm that. We are long on NI225 with TP = 23,000. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
TVC:NI225Long
by InvestingScope
Positive from China, money from Japan, the best deal of the weekThe markets somehow calmed down after the shock caused by Trump's tweets. The reason is that the information that China is not going to withdraw the negotiators. This week a Chinese delegation will arrive in Washington for the next round of talks. This is a confirmation of our assumption that Trump's tweets should be responded calmly since this is nothing more than a form of pressure on the negotiators. Another example of similar negotiations we observed was between the USA, Canada and Mexico. The result is well-known - a successful completion with a benefit for the United States, of course. So something similar is happening now. However, the Fear Index (VIX) does not think to go down. Accordingly, our recommendations for finding points for gold and Japanese yen buying as well as oil sales remain relevant. Strategists at JPMorgan Chase & Co, meanwhile, are wondering where the $ 400 billion of Japanese investors will get, which they will receive after redeeming Japan’s government bonds. The amount is more than serious and any of its directional movements, especially one-time, will greatly influence the dynamics of prices in any market. It is quite possible to observe a carry trade wave, which will contribute to the weakening of the Japanese yen. So if a strong movement on sales of the yen suddenly begins in the foreign exchange market, you should not stand in its way. Recall, at one time Soros needed about $ 10-15 billion to crush a pound by 15-20%. Accordingly, $ 400 billion is very serious. Markets will focus on working out the current fundamental background and price trends on Wednesday. Recall that this week’s most promising position is buying of the Australian dollar that has been chosen by us. Since the Bank of Australia did not substitute the national currency and showed restraint in the comments (there were no hints at the prospects for reducing the rate), the current points continue to be extremely attractive for mid-term trade with targets of 300-400 points and stops no more than 100. Our vision of the most promising positions for trading today are unchanged: buying of the Australian dollar and the euro against the dollar, sales of oil and the Russian ruble, as well as buying of gold and the Japanese yen.
by Trade24Fx