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 earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
- IBTimes Interview: Underneath The Surface
- Taking Advance/Decline Line A Step Further
- What To Get Your Chartist For The Holidays
- Weekends With Allstar and Pearlman
- Why Is It Always About What You’re Buying?
- Video: JC Parets Presents At Duke University
- The Three C’s of December Seasonality
- Investment Managers Are Leveraged Long
- Tom Fitzpatrick in NYC December 16th
- Weekends With Phil Pearlman & JC Parets
Archive by Year