It’s my belief that the Japanese “Nikkei Index” has indeed topped, and actually did so back around 16,450 at the beginning of the year. Ya, ya , ya – I don’t usually do this / make such bold calls but what the hell…..these days I see every bozo under the sun suggesting things will go up forever so…..you can “take heed” or “take a hike” – trade it as you see fit.
This last “run up to around 15,000” ( where I’ve suggested again, and again, and again we’d see reversal ) has been what some might consider “wave 2” ( if you are an Elliot Wave guy ) leaving open consideration for a much larger “next leg down”.
The Nikkei topped AHEAD OF THE DOW in 2007 in very much the same fashion.
Nikkei_Top_Led_Dow_2007
Remember this “beauty” from a few months back showing the Nikkei over a 20 year time frame?
*Draw a horizontal line at 15,000 in your mind. That is what we call a very, very, VERY strong line of either support or resistance – considering it’s significance over such a long period of time.
Nikkei_Longer_Term
Japan is a disaster, and when looking at things in this context – so is everything else as…..the Nikkei generally leads.
Perhaps this will shed some light as well….on my views about Central Banking and money printing as ( if you can imagine ) the massive dilution of the Yen ( as well USD ) over the past years, if only to achieve an incremental “short-term rise” in stock prices then……..to see things fall right back to where they started – just with waaaaay more “toilet paper” floating around.
Nothing has really changed, short of an incredible “transfer of wealth” from those already left with very little………to those who’ve already got a lot more than they need.
(P.S….in light of this “bold post” I might as well throw caution to the wind and tell you to run out tomorrow, sell your house, rack up every credit card you can, sell everything you own, leverage everything you’ve got another 500%, then “pre – market” dump every penny on a get rich quick “short play” Nikkei/Dow/whatever”, sit back and just watch the millions pile up.)
Please……..don’t be silly. I’m a single gorilla, with a single opinion and view of these things that for the most part – doesn’t generally fit the status quo.
Don’t be a dumb ass.
I know you’re not.