Japan shooting for the star www.cnbc.com
1) If you agree with me the story of USD getting stronger against many currencies, including yen, then you can see why Japan stock market will continue to stay bullish.
Short term wise, there is bound to be correction so have a mid to longer term horizon if you keen to play this index.
2) Also ,coming up in 2 years time, Japan will be hosting the Tokyo 2020 Olympics. I believe this would be a good confidence booster, shoring up the tourism sector, F&B, entertainment, etc.
www.capitalgroup.com
3) Next, Japan is still printing money to boost the economy :
www.japantimes.co.jp
Japan 225
Nikkei: Potential pull back towards the 1D MA200.Nikkei has been on a strong 1D uptrend since the August rebound on the 20,115 1W Support and just recently 1D turned neutral (STOCHRSI = 53.869, ADX = 18.607, Highs/Lows = 0.0000) showing possible signs of exhaustion.
The 1D RSI is on a bearish channel, diverging from the price action and that could be a first sign of a short term trend change.
We have traced this behavior back on the last time NI225 had a Golden Cross bull run of a similar pattern and that was in late 2016 - early 2017. After the bull run took a pause on January 2017, the RSI also printed a bearish divergence and the index consolidated for roughly 2.5 months before pulling back towards the 1D MA200. That was the first important test of that uptrend and was successful as the price rebounded on the 1D MA200 which acted as a Support all the way until the January 2018 High.
We are expecting a similar behavior this time also and advice investors to wait for a pull back near the 1D MA200 before buying again and target the 24,450 1M Resistance.
We want to point out at this stage that Nikkei's horizontal levels have been working well enough on the long term and this is what helped us buy the pull backs on the Support Zones before, as you see on the chart below:
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JPN225: Nikkei potentially confirming a yearly uptrend soon...The Nikkei has been in an insane climb lately, and Japan as a whole, has been presenting more attractive valuations overall, than US or Europe stocks. Personally, I'm long EM equities, and some US ones, but, Japan does have a valid uptrend in the intermediate term, and soon in the long term as well. One concern you may have is mainly demographic, if you factor in the population aging, which could contribute to a slow down of growth over the long haul, as well as potential geopolitical risks, being so darn close to 'Rocket man'. Talking of Rocket man, did you know there was a Megaman prototype game called like that, before it was called Rockman X in Japan? I didn't either: www.youtube.com
Funny stories aside, wether Trump is a Megaman fan or not, this is a significantly interesting chart to monitor for bullish setups in select japanese equities.
Best of luck,
Ivan Labrie.
The Art of Missing The Big Bull Trend (Nikkei/Japan Example)Crisis or crash will happen from time to time.
However, the funny thing is, human psychology is so fixated in "Avoiding the Pain" versus "Taking the Opportunities" when it is presented.
Why people like Warren Buffett are the richest people in the world? Despite not using any form of technical analysis? Because fundamentals matters and capital flow matters.
Yes, depression happens, crash happens, but market recovers soon after, and then stride to make newer high and new all time high.
That is because market and capital follows the development in economy and as the world population grows, as emerging countries grow to become developed country, the total world GDP is increasing from time to time, so, it is natural for the global stock market to rise over LONG PERIOD OF TIME.
Doesn't mean that people should buy at the market peak or market top. It just means the chances for market crash or market corrections are very low. Once every 10-20 years and the potential upside is always much much bigger than the downside.
Market crash or depression means that stocks are cheap and provide a better entry point for people who can think long term enough. Such as those people who bought in 2009, 2002 Nasdaq, 1997 Asian stocks, 1987 crash, 1974 crash or 1932 great depression bottom.
But, to stay in cash and wait patiently for this type of crash to happen can be painful.
For example, people often talks about Japan 1988 bubble and how it was devastating for the Japan and all the ensuing lost decades. People didn't mention that Japan stock market or Nikkei increases 1000x from 1948 to 1988 in a 40 year bull market without any major corrections.
Just think about it, Japan stock market did 1000x in 40 years and never had any major corrections. Eventually the trend will be over and that is the reasons why Japan is having a lost decades. Because the longer and the more you stretch, the longer it takes to recover.
However, try to imagine this, from 1948 to 1980, if anyone get into the stock market, despite the lost decades, they are still UP. Because Nikkei never went below the 7000 level despite the crash and despite the 2008-2009 crisis.
Just think about it, after 32 years of bull market, anyone who didn't invest in Japan stock market before 1980 will miss the gain forever. They will never be able to buy at that cheap level.
Look at any stock market in the world, Dow Jones, and go 40 years back, do you have the chance to buy at that level again anymore? Maybe never forever.
"But, everything will crash and collapse. It doesn't matter."
Doomsday scenario means that we have OTHER THINGS to worry other than stock market. If the global economy crash and we entered into a global great depression that is the biggest ever in human history, then, gun and pistol rules the world, it doesn't matter if Dow is at 100,000 or 10,000 or 1,000 or 100.
it doesn't matter, what happens to stock doesn't matter anymore because you might get killed first before your stocks got liquidated on margin.
The point is, when they are too much fear, market doesn't go down or crash. Fear means everyone has sold out, no more sellers. When they are no more sellers, hard for something to go down and crash.
I am not advocating to buy at market peak and market top. But looking at this example and other example, there is always a probability and chances that stock market will keep going up and break new all time high and go to a level that nobody thinks about. And even when the stock market crash, it may crash to level where most people don't even have the chances to buy.
Look at nikkei example, look at dow and s&p 500 example.
Plus, we are on the brink of Fourth Industrial Revolution 4.0, which includes many things and blockchain.
The easiest and best bet for long term is to long everything that will benefit from IR4.0. Doesn't mean everything will go up. Some dinosours will die and will be replaced. Some will be value traps.
Even in Japan, they were and are some 10-100 baggers in the stock market, despite the lost decades.
Opportunities always exist. And the easiest way to get super rich is to have long term mindset and ride the trend as far as possible.
Reference:
stooq.com
Nikkei USDJPY ratio at a very significant levelTVC:NI225/USDJP is at the same level it was in 1991,1995,1997,2018. The horiztontal trendline extends from 1990-2019 nearly 30 years. A closing above this trendline on a monthly basis will signal a bullish scenario in the Japanese stock market in my opinion.
Nikkei 225 - SHORTKeep it simple!
Looking at Nikkei 225 on the daily, there was a good spot for a short entry position with a good risk to reward ratio. The Red box is where I suggested to short the range as rejection was likely, and the green boxes are the ranges to take profit. There are three main Profit targets as labelled. By third profit target I would have finished the majority of my position.
Nikkei 225 Japanese supply and demand forecastNikkei 225 Japanese Index has been rallying for a few weeks creating new strong weekly demand imbalances. Nikkei 225 index has unfortunately not retraced yet to any of these two strong weekly imbalances and continues to rally on its way to weekly supply imbalance around 23600.
Nikkei 225 Japanese Index futures forecast. As per the weekly timeframe analysis, Nikkei 225 Index futures is in a clear uptrend creating new weekly demand imbalances at 21850 and lower at 20570. Nikkei tried to correct and reached bottom weekly demand level but it just couldn’t and kept on rallying ending up creating another strong weekly demand imbalance around 21850.
Long term long bias on Nikkei index. This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
Elliott Wave View: Nikkei Buyers in ControlNikkei shows Elliott Wave bullish sequence from December 26, 2018 low and August 26, 2019 low. This suggests that buyers are in control and favors further upside in the Index. The pullback to 21079 ended wave ((2)) and the Index has resumed higher in wave ((3)). Internal subdivision of wave ((3)) takes the form of a 5 waves impulse Elliott Wave structure.
Wave (1) of ((3)) is currently in progress as a leading diagonal. Up from 21079, wave 1 ended at 21650, wave 2 ended at 21325, wave 3 ended at 22265, and wave 4 ended at 21905. Expect Index to soon complete wave 5 of (1). Afterwards, Index should pullback in wave (2) to correct the cycle from October 3 low before the rally resumes. We don’t like selling the Index and expect buyers to appear in the sequence of 3, 7, or 11 swing as far as pivot at 21079 low stays intact.
Elliott Wave View: Impulsive Rally in NikkeiElliott Wave view suggests the rally in Nikkei from August 26, 2019 low is unfolding as an impulse Elliott Wave structure. In the 1 hour chart below, the rally to 21890 on September 13, 2019 ended wave (3) and wave (4) pullback. Internal of wave (3) unfolded as an impulse in lesser degree. Wave 1 of (3) ended at 20800 and wave 2 of (3) ended at 20416. Up from there, wave 3 of (3) ended at 21455, wave 4 of (3) ended at 21295, and wave 5 of (3) ended at 22095.
Near term, the cycle is mature and thus it’s risky to chase the rally at this stage. However, while near term pullback stays above 21800, further upside can’t be ruled out within wave (5).
Nikkei 225 index formed bullish Shark | A good long opportunityPriceline of Nikkei 225 index has formed a bullish shark and entered in potential reversal zone.
I have defined the targets using Fibonacci sequence as below:
Buy between: 20094.62 to 20460.02
Sell between: 20779.31 to 21503.43
Regards,
Atif Akbar (moon333)
Nikkei Break Out Nearing?Our Dax and ESP 35 trades are continuing as mentioned in previous posts. It seems cheap money and easing will keep stocks propped as there will be nowhere to go for yield. Of course, a geopolitical issue or black swan event can nullify this...and I believe there will be a confidence crisis approaching.
However, we will deal with that when it appears and the bond market will give us the signal for this.
I like what I see here on the Nikkei. A nice downtrend with basing/range. You can say a cup and handle pattern too. Let us await for a break above this resistance one.
Other confluences fake out candles and engulfing candles at the major support below, indicating that we may have shown 2/3 market moves (downtrend and range).