Nikkei 225 JPN225 CFD
US30/Nikkei225 - (Continuation) SHORT; SELL it until ...... it can be shorted no more!!
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Been making stupid amounts of money in this spread, ever since!3
Obviously, this still has quite a few country miles left in it (SHORT). - Then, on the top of it, factor in the currency differential and Baam! ... Probably the best (passive) index trade out there, bar none.
This is likley to run out of steam soon, ...too. - But not before US Equities do!!
(Made a lot of money on these longs until now and especially being Short DJIA/Nikkei225 Spread!)
... and given the currency differential, the Nikkei225 is still a helluva lot better deal than US indexes.
Here is the SP500/Nikkei225 Spread
Short it until it can be shorted no more!
Here is the Weekly;
Weekly Market recap 16: Preparing for the next leap. Global view: What's happening?
While global coronavirus cases rise to 100 million, the risk assets keep rising as well! DXY remains relatively neutral, as it's range-bound between ~90.75 local resistance area and ~88.75 long-term support. I'd confidently consider trades in USD related pairs once DXY breaks either of the range borders. For now, it's better to abstain from USD trend continuation setups.
Meanwhile, major stock indices form trend continuation patterns. The consolidation period in the global markets is the best time for the quality trend setups in the relatively strong indices.
Betting on the strongest
I picked three strongest indices at the moment: US100, JP225USD and HK33HKD.
You can see that the American tech index has already recovered from the pullback and makes new highs, while the leading Asian indices are consolidating. Nikkei has been in momentum since it's come out from the 30-year range. Chinese economy looks best during the pandemic compared to the rest of the world. Initially, China A50 index, which represents China Mainland companies was relatively stronger than the Hang Seng index as the political situation in Hong Kong affected the latter one.
Now, investors see the discount that appeared in Hong Kong stocks priced higher in Mainland exchanges, which motivates big flows of investments back to Hong Kong. It resulted in the short-term relative strength of Hang Seng compared to China A50.
Trading tactics for buying Indices
1. The strategy in Asian indices is simple - buy the breakout the market closes above the recent consolidations (HK33HKD - above 30000; JP225USD - above 29000).
2. Although the best entry in US100 could be the breakout of 13200, I guess it still makes sense buying it intraday for a short-term momentum gain.
Conclusion
There is not much going on in FX market right now as USD keeps being bound in the range, meanwhile the major stock indices present trend continuation opportunities.
NIKKEI225 LONG; Best of the G10, long term.Currently the best outlook of the developed markets.
- As opposed to the DAX and US Equities, the former being an absolute dog, the later under a mass delusion price wise.
The DAX
E.g. If one must be long Equities, the proper spread would be LONG NIKKEI, CAC, SHORT Dow, DAX.
This spread has an annual 8%-10% advantage, including FX differentials, over any other G10 Equity Long!
ridethepig | Nikkei Market Commentary 2020.09.19📌 The Nikkei would have freed some space to the downside with a technical break last week, but given that we have not pierced the support line and buyers are still well-placed we must be wary of a retest in the highs of the multi year top at 24,000 - the same level we have been tracking since 2018!!
The more interesting notion comes from the Global Equity board with breaks being led by NY and following through with Europe on the quadruple witching flows.
A simple move here would be playing the breakdown for a quick test of the 200 day MA which is +/- 22,000 and on the other perhaps opening up the panic leg towards the lows at 20,300 if the rest of the flows play along. Any moves to the topside lack conviction and the RSI destroys all winning chances for buyers as we approach the highs.
Thanks as usual for keeping the feedback coming 👍 or 👎
TOYOTA MOTOR CORP: Important Breakout & Bullish Continuation
Confirmed breakout of a bullish flag pattern on Toyota.
Taking into consideration that the market is trading in a bullish trend
this breakout will most likely initiate a bullish rally.
I will buy on a retest of 618 retracement of the last minor bullish leg.
goals:
7286
7523
3 decades long resistance finally turning? Japan is the best in many things, but obviously not in stock prices...
BUT!
Nikkei 225 Index is now looking bullish, we're seeing a support resistance role reversal here.
A cup&handle pattern that took 24 years long to form is finally breaking out.
We've got measured target from the formation of 35,000, and from there we may see new all time highs on Nikkei.
Let's see which way the handle breaks to get confirmation.
***NOT FINANCIAL ADVICE***
Japan's major index is breaking out. Follow the money flow...While the Nasdaq is turbulent the Japanese Nikkei is breaking out and headed toward a major level. Long into that zone, then we'll see if there's follow through. A break above the major blue level sends the Nikkei much higher.
Bigger picture:
JP225 on the break of the triangle 🦐JP225 on the daily chart has retraced till the 0.382 fib level before moving in a consolidation range.
The market has bounced twice on the daily support creating a double bottom where it took the liqidity to start a new impulse to the upside.
If the market will break the triangle and consequently will break the upper daily structure, at the retest of it, we can set a nice long order according with our strategy.
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Follow the Shrimp 🦐
Here is the Plancton0618 technical analysis, please comment below if you have any question.
The ENTRY in the market will be taken only if the condition of Plancton0618 strategy will trigger.