Japans currency has been the *in thing* in the carry trade for years but that’s changed now thanks to Uncle Ben’s massive printing leaving the USD in the weakest position on the face of the earth. I’m not saying it it was done unnecessarily; that’s an argument for another day but it is what it is so we must adjust our mindsets accordingly when it comes to investments. To that end, Ashraf Laidi has been pointing out the strength in the Japanese Yen over the USD and the fact that their market [Nikkkei] began a series of lower lows in September; ahead of the Dow or S&P. Today we examine just how much ground the Nikkei has lost; retracing almost 50% of this years rally and Ashraf’s opinion that we are on tract to follow in its footsteps. If you’ve been monitoring this meager blog at all, you know I’ve been prettymuch short for the last three weeks – and very profitably so.
Instead of looking at areas of support to *buy the dip*, I’ve adjusted my mindset to look for areas of upper resistance where I’m shorting stock. Once you view the Nikkei and checkout the S&P, you may want to adjust your mindset as well and short any pops here rather than buying the dips.