1) within completion of wave III (development of wave 5) a buy
NIKKEI 225 futures at 13100 points with the aim to sell at 15670 points (+19.62%), with a stop order at 12900 points (-1.53%); time horizon is 13 months;
As previously explained, the
Nikkei 225 bottom at 7,600 marked the end of the secular Heisei Bear Market.
We expect that within wave C
NIKKEI 225 will rise to 12600 points, or 24%; time horizon is 12 months.
This morning, the
Nikkei 225 closed higher by nearly one per cent, rising by 91.3 points to an index value of 9828.8 points.
If this is indeed a cyclical peak in the economy, the
Nikkei 225 could slip below the 10,000 level again.
Concern over a slowdown of US and emerging economies - which sent the local stock indexes tumbling by more than 2 per cent on Monday - prompted the worst Japanese equity sell-off in eight months, wiping over 4 per cent off the
Nikkei 225 average.
By comparison, one has to go back nearly forty years to find the
Nikkei 225 trading at its current PER on prospective earnings of 17.5x.
At the close in Tokyo, the
Nikkei 225 rose 0.20 percent.
The benchmark
Nikkei 225 Stock Average gained 188.76 points, or 1.99 per cent, to close at 9,693.73.
Strategists also suggested that Japan would fare better than the US because the
Nikkei 225, which had been in the throes of a bear market since 1990, was supposed to have presented less downside risk than the US market, ostensibly because it had fallen so much already in the prior decade.
At the close in Tokyo, the
Nikkei 225 lost 1.02 percent.
Summary: Tokyo, Muharram 04, 1432, Dec 10, 2010, SPA -- Stocks in Tokyo closed down Friday for the first time in three days as investors sold shares to lock in recent gains after the benchmark
Nikkei 225 Stock Average opened at a seven-month high, as dpa reported.
