Short Nikkei 225
Updated
Japan's economy is in big trouble that will take a generation or two to fix. Yet, if you look at the big picture of Nikkei, it may appear that it took them 40 years to solve problems from previous generations. In reality, that is not the case and I think we will see a sea of corporate scandals hit the news.
So let's wait and see)
So let's wait and see)
Trade active
What a rollercoaster, a jaw-dropping 12% drop in the Nikkei 225 in a single day, only for it to make a come back within a week. The wild swings created some fantastic opportunities, and while the chaos in Japan doesn’t change the fundamentals, it made the U.S. equity markets a prime buying opportunity.
But here’s where it gets interesting: Despite scooping up U.S. stocks, I’m adding to my short position in the Nikkei 225. I believe that Japan’s issues run deep, and this bounce looks more like a dead-cat bounce than a sustainable recovery.
Lesson of the Week: Profit-Taking and Re-Entry Are Key
There’s a big lesson here—when the market hands you a big win right out of the gate, it’s smart to take some profits and wait for the next bounce to re-enter. That’s exactly what happened in this case. I missed the cover part because i only have 1 lot and now adding to my short for the next leg down.
The market has given us another chance to capitalize—let’s see where this move takes us. But in any case, this was supper exciting week shopping for the US equities
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