Asian Markets - Japan Long Ideas - September 19, 2018

Cerundolo Investment Research    

CIR Asian Markets  

Volume 2, Issue 6
September 19, 2018

Download PDF Version here


Items of Interest:

  • As mentioned in recent Technical Tuesday reports, we felt that the Nikkei had been holding up very well and likely to “retest the January highs.” The momentum of the last few days as the index reversed strongly from trend support not only suggests we will see a retest of the recent highs, but the odds are there that we may likely see those highs surpassed and the MFU-4 target exceeded in a meaningful way.
  • For those familiar with my work and have familiarity with the Money Flow Unit analysis, my bullish call on the Nikkei was made known to a broad audience of colleagues at a “morning meeting” back in January 2013 when the index had a weekly close above 11000. The call was that this is the start of “a bullish move that will have the index advance to the 24500 area, which the index was just shy of this past January.
  • The bottom line is that the index remains in a favorable long-term uptrend and momentum is once again building. If we are to see a multiple week close above the 24500 area, then we are likely to see an extended leg higher to an MFU-5 level which occurs 5% of the time. We will highlight that target area once the conditions are met.
  • In the attached PDF you will find a review of the Nikkei along with the top 48 ranked stocks of the Topix Index that we feel one should consider for long candidates. Only stocks with a factor score of 3.1 or greater are considered as long candidates. We are using monthly long-term charts relative to the Topix to highlight the favorable absolute and relative trends our model is kicking out.

 

Happy to discuss names that are not covered here..

 

 

 

 

 

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