Markets Update — Ohayou Gozaimasu: 1st Sept 21
Japan has been a frustrating market to trade this year as well since peaking in February. The correction has been extremely choppy, generating lots of false signals along the way.
When ATEC last mentioned it in August, the index broke its 23% Fibonacci support on 20th August, only to reverse above it the next day. Treacherous is probably an understatement.
The setup today now looks completely different, as seen in the chart below.
It is now on the verge of taking out a corrective channel (in green), with corresponding improvements in its technical readings. In the developed markets space, this market had been a severe laggard, probably in part due to its management of COVID and vaccinations.
Still, this is what we are presented with today and we will stand ready to go long on it upon confirmation. There are many cyclical names/sectors in Japan to choose from.
