Do We Need To Be In Japan?
- Posted by JC Parets
- on November 19th, 2012
Here is an interesting chart that I’ve watched develop throughout the year. We’re looking at Japan’s Nikkei 225 Stock Average Index for 2012. What stands out to me here is very simple: we’ve seen 5 tests of resistance since the beginning of the summer. And when that happens, a breakout is usually coming:
We know there are sellers at the 9100-9200 level. That’s clear. But logic tells us that with each test of resistance, more sellers that were willing to sell at those levels will have already sold. So in theory, these sellers will eventually dry up leaving only buyers to rule at those prices. That’s when we get the pop.
The target is pretty clear. I think we’re headed towards the March highs, which is about 1000 points away. And the best part is that Japan doesn’t have any strong correlation to US Stocks. Finding non-correlated assets to position ourselves in is always a goal of ours. Finding one set up this well is the hard part. It looks to me like we have both in this case.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- The Chart The Whole World Is Watching
- Crude Oil To $70 In the Second Quarter?
- Fox Business: Social Media Stocks Break Out
- CNN Money MarketMadness Stock Challenge
- Social Media Stocks Are On Fire
- About That Outperformance From The Dow Jones Transportation Average
- Some Thoughts On The US Dollar
- Small-Caps Could Be Emerging As New Leaders
- Taking The Time And Avoiding Shortcuts
- Is Twitter Stock About to Break Out?
Archive by Year