Nikkei getting crushed...

On that 3-month chart which is it going to be...

Island Reversal Gap or Runaway Gap?

 

LOL. I hope u don't fool that easily. I'll try for a longer term view for you.

 

Note that the last chart was hsi futures (my rolled version) and I can't go far enough back so I'm using futuresource daily data for this ... the volatility at the top and the "island reversal" are even more obvious without the extra sessions we get in the futures market.

Still above the 200 but very suspect as uptrends go. However, another rise would suit me fine so "rock on hsi!" Movement = Money


<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1396111">

 

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1396131">

 

Birinyi says that recent previous drops of more than 2% led to an average up day of .62% the next day.

http://tickersense.typepad.com/ticker_sense/2007/03/2_down_days_and.html

 

yeah right... "has to"...
nothing has to go anywhere mate.

 

And down the Nikkei goes once more. One hour into open and 200 points down.

 

I posted an entire thread about how I've sworn off the Nikkei (and the yes swing trade, for that matter).

That mofo has a higher beta than Baidu.

 

As yen strengthens, the Nikkei will keep getting crushed and we too in the US will see our markets drop.

For Japan, it's all about a stronger currency making exports expensive for foreign buyers. For US it's all about the carry traders selling US assets to repay the yen they borrowed to do the carry trade!! So if you are long pray that the yen weakens and vice versa for shorts (me

http://lauristonletter.blogspot.com/

 

the sentiment itself is one of malaise in us equities, not enough oompf to push them higher, lot of overhead supply looking to get out before possible yen unwind similar to last year.