Nikkei 25,000!

For longterm investing, in general, i'm a contrarian.

With that in mind, Nikkei is looking mighty appealing to me.

Coming out of a basing pattern of a nice looooooong bear market. And historically speaking, on a ratio basis, it is exceptionally undervalued in comparison to the S&P.

I do some daytrading (night-trading more like it) of the Futures, but the spread is awful. it's 5 point in Singapore (10 on OSE which is even worse). But when you can catch 100-200 pt moves, a 5 pt spread aint that bad.

I like to use EWJ calls for longterm spec, and daytrade the futures through Singapore.

In a word, I'm bullish on Nikkei
 
When EWJ crossed above its 50 day moving average yesterday, it forced me to reevaluate. I retract what I said about the Nikkei seeing 15,000 before it sees 17,000.
 
Quote from asterisk:

When EWJ crossed above its 50 day moving average yesterday, it forced me to reevaluate. I retract what I said about the Nikkei seeing 15,000 before it sees 17,000.
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It was already at 15,400 before last weeks bounce ...
 
Yes, it made to 15400 but not 15000 (since my post on Feb 16). At this point, I'm more inclined to agree with trader99 that it is on its way to 17000 next.

I thought the selling would feed on itself - after all, the reason for this latest decline is mostly fear of selling by foreigners, right? It seemed to me that this should have been a self-fulfilling fear - that the fear of selling by foreigners would actually cause foreigners to sell, but the price action tells me that this scenario didn't pan out.
 
I feel this is a bounce from a short term oversold condition.
The Nikkei dropped 1400 points, so a 700 point rally is only a 50% retracement.
It's still below its 8-WMA, and its 34-DMA. Until these are breeched to the upside I'll remain bearish.

Best of luck, it's a fun index!
 
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